Bipartisan bill banning junk fees passes out of Virginia Senate committee

Junk fees, the surprise fees that come with phone upgrades, concert tickets, hotel stays, the rest, cost the average Virginia family more than $3,200 a year.

Senate Bill 388, which passed out of a State Senate committee this week, would effectively ban the junk fees, by requiring businesses to disclose and advertise upfront any mandatory fees that are included in the total price of a product or service.

“This bill increases transparency and protects Virginia consumers from surprise junk fees,” the bill’s sponsor, State Sen. Stella Pekarsky, D-Fairfax, said after a 13-1 vote in the Senate Committee on General Laws and Technology advanced her bill to the Senate floor.

“Even kids running lemonade stands know they can’t charge someone more than the price they put on the sign. My bill will hold corporations to that same standard, and I appreciate my colleagues’ support in advancing it today,” Pekarsky said.

The hidden junk fees are usually not displayed until near or at the end of a transaction and often contradict the price that was initially advertised. According to a national poll from Data for Progress, an overwhelming majority of voters, including 81 percent of Democrats and 72 percent of Republicans, strongly support efforts to end the practice of junk fees.

“This common-sense, pro-consumer bill will increase transparency and save hardworking Virginians money,” said Rhena Hicks, the executive director of Freedom Virginia, a Norfolk-based nonprofit that works toward the advancement of economic security policies through grassroots activism, voter engagement and legislative advocacy.

“From renting a car to upgrading a cell phone, hardworking Virginians deserve to know the total cost of a product upfront instead of at checkout,” Hicks said. “We’re grateful to Sen. Pekarsky for tackling this important issue and look forward to passing this bill out of the full Senate soon.”

Del. Adele McClure, D-Arlington, is carrying the companion bill, HB 1320, in the House of Delegates. The House bill has been assigned to Labor and Commerce Subcommittee #2.