By Diane Bartz
WASHINGTON (Reuters) – A U.S. agency voted on Thursday to begin making rules to crack down on deceptive marketing practices such as fake online reviews and excessive hidden fees also known as “junk fees”
The Federal Trade Commission (FTC) also voted to begin the process of modernizing rules governing the funeral industry to help grieving families navigate often confusing and expensive decisions that must be made shortly after losing a loved one.
The four FTC commissioners voted three to one to begin the lengthy process of writing rules by seeking comments on the prevalence of fraudulent online reviews and junk fees. These are sometimes labeled “service charges” on phone bills or imposed by hotels as “resort fees.”
Chairwoman Lina Khan and Democratic Commissioners Rebecca Slaughter and Alvaro Bedoya, all Democrats, voted yes on both measures. Republican Christine Wilson voted no.
FTC guidelines already say that posting fake reviews and endorsements is illegal. And it has proposed a rule to ban junk fees by car sellers.
But supporters say new rules are needed to make it easier for the agency to pursue enforcement actions following a Supreme Court decision from 2021 which had tossed out methods it had previously used to win civil penalties from people or companies engaged in deceptive practices.
The commission also voted to begin the process of updating existing rules governing funeral homes.
One current rule requires funeral homes to maintain a general price list that is available to grieving families. There has been criticism that there is not a requirement that the price list be online.
Slaughter said easier price comparisons would be helpful for people who are sometimes making the largest purchase of their lives.
“Funerals are not only emotionally overwhelming, they are financially overwhelming,” said Slaughter. “It is a purchase that is happening under incredible stress.”
Another Republican commissioner, Noah Phillips, left the agency last Friday.
(Reporting by Diane Bartz; Editing by David Gregorio)