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Thursday, April 27, 2023

How ‘Junk’ Fees Secretly Invaded The U.S. Economy (And How Pres. Biden Wants To Stop Them)

 https://youtu.be/0onrjSE7Ntw

*Accounting consolidation is important; but marketing department does not like to compete with price competition. More junk fees can obfuscate the billing and receipt system therefore making the marketing department's advertisements look more effective. More buyers for the initial boost (like a caffeine high for business revenue.) Junk fees can also be a short term business tactic to boost market share temporarily (as consumers discover there is a different brand) but I do wonder (as probably negatively) the buyer will have about the seller in such tactics. 

 I am a proponent with upfront full disclosures (especially in retail and written contracts.) Junk fees are a nuisance and complicated to enforce as related to expectations and assumptions buyers make about the product or service. 

 Junk fees can also be a "hidden tax" for the sake of law enforcement to collect more than what their state/federal government budgeted for. ("This is a shakedown to ignore the thing that happened last time.") 

I am a proponent for some the real estate fees like title insurance because of real estate fraud is real (especially post closing.) 

Overall , junk fees expose demand expectations and can be used to bully competition between sellers, and have a negative side effect of graying out the up front advertised pricing. 

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