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Cracking down on 'junk fees' on the state & federal levels

These hidden costs add up to at least $29 billion annually here in the United States, according to the Consumer Financial Protection Bureau.

SAN DIEGO — While the White House is now taking steps to outlaw so-called 'junk fees,' California has already taken action.

Companies often add on these extra fees after you've agreed to buy something, from booking a hotel room to purchasing a concert ticket.

These hidden costs add up to at least $29 billion annually here in the United States, according to the Consumer Financial Protection Bureau.

"I got hit by them with the hotels," said San Diegan Luke Dobson. "You book the hotels online, you get there and it was going to be $300... but now it's $350, $375."

"Concert ticket prices are just skyrocketing. It's almost impossible to get into certain concerts because of those fees," said San Diegan Hannah Dobson. "I just think they need to be more upfront."

Beginning next July, companies doing business in California will be required to be more transparent about the true total cost, on everything from hotels and concerts to utility bills to restaurant surcharges to cancellation fees for your cell phone service.

"To the companies who have been involved with these junk fees, we are saying, your days are ending!" warned  

California Attorney General Rob Bonta, speaking in an Diego's Balboa Park earlier this year. He was showcasing Senate Bill 478, legislation he sponsored that prohibits companies from charging these hidden fees, requiring them to present them to consumers from the start.

"No more!" Bonta added. "It's inappropriate, it's unfair, it's wrong to consumers."

Governor Newsom recently signed this bill into law, which does not ban companies from setting a certain price, but does regulate how companies can present or advertise the cost.

"It's just about fairness," said President Joe Biden. "It's just about simple fairness."

President Biden is now pushing for similar regulations on the federal level, which would fine companies $50,000 for each violation.

'These junk fees may not matter to the wealthy, but they sure matter to working folks and homes like the one I grew up in," he added. 

"If they could be more up front with it, that would be amazing," said Luke Dobson.

"Living in California, it is i already expensive," added Hannah Dobson, "so it's hard to budget for those types of things when you don't know what those fees are going to be."

The White House is hopeful that these new rules on the federal level will be put in place in the next several months.

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