Utah Consumer Protection Discusses Junk Fees in Housing and Auto Industries

On June 18, 2025, the Utah Legislature's Business and Labor Interim Committee convened to address pressing issues affecting consumers and businesses in the state. The meeting highlighted significant concerns regarding homeowners insurance and the prevalence of "junk fees" across various industries.

A key discussion point was the rising costs associated with homeowners insurance. Representatives noted a stable number of insurers in the market, but a concerning increase in both the number of policies and premiums. The average cost per policy has steadily risen, prompting calls for closer monitoring of these trends. The committee acknowledged the need for vigilance as non-renewals initiated by insurers have also seen a notable uptick, indicating potential instability in the insurance market.

The second major topic revolved around the issue of junk fees, which have become a widespread concern for consumers. Representative Thurston raised the issue of hidden fees in various sectors, particularly in the rental market and auto sales. He emphasized the lack of transparency in pricing, where consumers often encounter unexpected charges at the end of transactions. This practice, known as "drip pricing," can lead to frustration and distrust among consumers.

Katie Haas, the director of the Division of Consumer Protection, provided insights into the state's efforts to combat these deceptive practices. She explained that while some industries are regulated, others remain challenging to oversee. The committee discussed the need for clearer regulations that would require businesses to disclose all fees upfront, avoiding vague terms like "service fees" that do not specify what they cover.

The conversation also touched on specific examples of junk fees, including those associated with auto dealerships, food delivery services, and rental applications. For instance, consumers have reported being charged mandatory fees for warranties and other add-ons that were not disclosed at the outset of their transactions. The committee noted that these practices are not only frustrating for consumers but also detrimental to fair competition among businesses.

As the meeting concluded, the committee recognized the importance of addressing these issues to protect consumers and ensure fair business practices in Utah. The discussions underscored a growing awareness of the need for legislative action to regulate junk fees and enhance transparency in pricing across various industries. The committee plans to continue exploring potential solutions to these challenges in future sessions.