Ohio Consumers And Junk Fees: When Hidden Charges May Violate State And Federal Law

Most consumers have likely had an experience where they see a certain price posted on a company’s website, but then find out that more charges are imposed at the checkout stage. These “surprise” fees can dramatically increase the cost of goods or services, although not all of them are necessarily illegal. Nevertheless, some fees may bring about legal issues if there is no proper disclosure of prices.

Being aware of your rights will help you avoid excessive charges and know when legal action is required.

What are junk fees? 

“Junk fees” refer to extra fees levied on a particular transaction that are not stated upfront before a consumer decides to purchase a product or service. Some common junk fees include:

• Processing fee/convenience fee
• Administrative fee
• Resort/destination fee
• Service fee
• Hidden subscription fee
• Ticketing fee
• Cancellation fee

Junk fees can be applied to various transactions such as booking for vacations, buying tickets, rental deals, telecom services, or even online shopping.

When do hidden fees become a legal problem? 

Not all extra fees are illegal. It is perfectly legal for businesses to collect such fees provided that they disclose them and represent them honestly to consumers.

The difficulty comes in when companies offer their products at certain prices yet hide extra mandatory fees until very near the point of purchase, so that consumers feel compelled to complete the purchase process due to the time invested.

Hidden fees can sometimes be considered to be a form of deception or an unfair business practice.

Ohio consumer protection laws 

The Ohio Consumer Sales Practices Act (CSPA) protects Ohio residents from unfair, deceptive, or unconscionable practices when dealing with consumers.

An act can constitute illegal activity when it:

• Understates or overstates the price for a commodity or service
• Does not provide adequate information regarding pricing
• Deploys misleading advertising to lure customers
• Imposes additional costs unexpectedly without proper disclosure

In some instances, compensation or other penalties may apply.

Federal scrutiny of junk fees 

The federal government also protects consumers against junk fees. The government has taken aim at a tactic known as “drip pricing.” This involves revealing mandatory fees only when the consumer is already halfway through making the purchase.

Consumers need to know prices correctly to make a purchase. As regulations increase, there will be more pressure placed on companies to avoid underhanded tactics.

What should consumers do? 

If you think you’ve been subjected to improper or unauthorized charges, you should keep evidence of the transaction. Some of the things that you need to save include ads, screenshots, receipts, emails, agreements, and correspondence with the company.

In addition, one needs to evaluate the terms and conditions of the transactions.

Talk to a Columbus, OH, Consumer Protection Attorney Today 

Kohl & Cook Law Firm, LLC, represents the interests of Columbus residents who have been cheated by an Ohio business. Call our Columbus consumer lawyers today to schedule an appointment, and we can begin discussing your next steps right away.