As a small business owner who understands the economic pitfalls brought to our industry post-pandemic, the Federal Trade Commission’s (FTC) new “junk fee” proposal brings me concern. Although some junk fees are unnecessary and truly deceitful, I am nervous the FTC’s reach would be too wide sweeping, as it doesn’t consider the needs of small- and medium-sized businesses who use these fees to incentivize workers and remain competitive. I also believe the FTC’s rule fails to acknowledge the natural shift away from hidden fees from businesses who rely heavily on consumer reputation.

To be sure, the proposal’s intent to make things easier for consumers should be well received. No one likes financial surprises unless you’re earning more money. But heavy-handed regulation that only simplifies prices across the board will unravel carefully-crafted pricing structures many small businesses use to keep both their employees and customers satisfied. The pandemic has caused serious workforce and supply-chain setbacks, and the modest fee we apply on our tabs illustrates this in a transparent way. Deceptive fees can repel consumers, but the responsible application of add-on fees keeps us afloat and our consumers returning.

To that end, we’ve already seen certain industries who don’t have legitimate needs for these fees dropped them. The customer is always right. So why does the FTC need to enforce their regulatory oversight when industries are already making the necessary changes to simplify prices?

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As comments for the FTC’s proposal continue rolling in, it’s critical the agency take a step back and realize industries are listening and responding to customers. There is no need for the FTC to strong-arm businesses into folding their fees into one lump sum.

I ask that the FTC works to gather more detailed information that examines the impacts this proposal could have on the U.S. economy, consumers and the millions of small businesses who are still reeling from the impacts of the pandemic.

Toby Waters

Realtor, LoKation Real Estate

Denver Metro Association of Realtors, Grand County Association of Realtors

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