On April 24, 2024, the Federal Trade Commission (FTC) held a virtual informal hearing on its proposed trade regulation entitled “Rule on Unfair and Deceptive Fees” which would impact virtually every American business that requires consumers to pay fees for goods or services, including rental housing.
This hearing—a part of the FTC’s unique rulemaking process—provided selected business and consumer advocates an opportunity to present their perspectives on the proposed rule; however, it was not intended to allow public dialogue as no time was allotted for Q&A. Given that most participating organizations vocalized support for the FTC’s approach except for telecommunications industry representatives, the hearing also helped the FTC generate public support for its efforts to eliminate “junk fees” and require disclosure of all-in pricing across industries.
One hearing participant, representing the National Consumer Law Center, argued in favor of the rental housing industry’s inclusion in the blanket rule, accusing the industry of imposing “fees with vague names and unclear purposes and fees that far exceed the cost of providing a service” and urging the FTC to go a step further by issuing an advisory opinion that prescriptively defines the rule’s application to rental transactions.
The National Apartment Association (NAA) continues to lead the industry’s advocacy efforts with the FTC, and together with our partner the National Multifamily Housing Council, urged the FTC to allow us to participate in the informal hearing and provide balance to the rulemaking record. While those requests were ultimately denied, our advocacy resulted in an opportunity for dialogue with FTC officials to raise key industry concerns and answer questions directly from regulators.
While well-meaning, the FTC rule’s inflexible, one-size-fits-all approach to fee regulation ignores the operational realities of rental housing, which we strongly urged requires exemption. While the “junk fees” rule remains pending final FTC approval, NAA will continue to utilize every opportunity to engage with commission staff to influence their decision-making.
NAA expects federal agencies, including the FTC, to release a deluge of final rules in May before the next Congressional Review Act deadline to reduce the risk of rollbacks under a potential second Trump term and protect President Biden’s legacy. We stand ready to help NAA members and our affiliate partners navigate any new federal compliance responsibilities stemming from these rules and will explore all opportunities to reduce impacts on the rental housing industry.
To learn more, please contact Joe Riter, NAA’s Senior Manager, Public Policy.