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Junk fee

Junk fees are fees designed to confuse or deceive consumers by exploiting their behavioral biases. These tend to come in the form of mandatory back-end fees and hidden add-on charges, which obscure the true cost of goods and services. Junk fees stand in contrast to "all-in", "upfront" pricing where consumers are shown a true single price, inclusive of fees, at the start of the shopping process. Economists criticize junk fees for "increas[ing] search costs and equilibrium prices, distort[ing] consumer choices, and divert[ing] innovation toward exploitative rather than value-enhancing strategies".

Regulatory efforts
United States The Joe Biden administration undertook regulatory efforts to restrict junk fees. In 2023, the Federal Trade Commission (FTC) required auto dealers to disclose the actual up-front price in all their advertising or promotional materials. == See also ==
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