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IFA Files Comments Opposing NYC's Sweeping "Junk Fee" Pricing Mandate
On August 7, IFA filed comments opposing the NYC Department of Consumer and Worker Protection's proposed "junk fee" rule (6 RCNY § 5-16), which would mandate all-in pricing in every advertisement by every business in every industry. IFA urged DCWP not to adopt the rule as it prohibits no fee, rests on a record drawn from only four industries, and includes no compliance cost analysis.
Why It Matters: The rule declares ordinary, lawful pricing practices per se deceptive across every franchised sector, with strict liability, no cure period, and penalties up to $3,500 per violation. Compliance costs are steep and land on the same businesses already re-engineering for the City's October click-to-cancel deadline. The likely result: fewer discounts, more consumer confusion, and higher prices.
What's Next: NYC Department of Consumer and Worker Protection will review the comment record and decide whether to adopt, modify, or re-propose the rule. IFA urged the Department to defer to the NY legislature, where similar proposed junk fee legislation has failed twice, and will monitor parallel activity at the FTC and in the states.
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