The U.S. Senate Committee on Commerce, Science, and Transportation convened on June 9, 2023, to tackle the pressing issue of junk fees that burden consumers across various industries. The meeting highlighted the need for greater transparency and accountability from businesses, particularly airlines and hotels, regarding these often hidden charges.

Senator Sullivan opened the discussion by questioning the definition of junk fees, emphasizing the challenge of categorizing these charges. Professor Zwicky argued that the term "junk fees" is misleading, as it oversimplifies complex pricing structures. He stressed the importance of distinguishing between legitimate fees and those that exploit consumers, suggesting that mandatory fees should be disclosed upfront to avoid confusion.

Miss Greenberg provided a more consumer-focused definition, describing junk fees as unnecessary, unavoidable, or surprising charges. She cited the example of mandatory resort fees in hotels, which can significantly inflate the final bill without providing clear value to the consumer. This lack of upfront disclosure, she argued, prevents effective comparison shopping.

The conversation also touched on the broader economic implications of junk fees. Greenberg noted that these charges disproportionately affect lower-income consumers, diverting funds away from essential expenses like groceries and childcare. She highlighted staggering figures, revealing that credit card companies rake in $12 billion annually from late payment fees, while airlines collected over $102 billion in ancillary fees in 2022 alone.

As the meeting progressed, the witnesses and senators debated whether junk fees contribute to inflation. While Zwicky dismissed the connection, asserting that the cost of services remains constant regardless of how they are presented, Greenberg argued that these fees do have an inflationary effect, particularly on vulnerable populations.

The committee's discussions underscored a growing consensus on the need for reform. With 89% of consumers reporting encounters with junk fees, the urgency for legislative action is clear. The committee aims to enhance transparency and protect consumers from deceptive pricing practices, setting the stage for potential regulatory changes in the near future.