The Washington Post reported Sunday that corporations are scrambling to protect their profits while President Joe Biden is trying to kill what are called "junk fees."
The war began when Taylor Swift fans were furious over concert ticket "transaction fees," and other costs listed by Ticketmaster, owned by parent company Live Nation. Tickets to large concerts like Swift, Beyoncé, Bruce Springsteen, Elton John and others can run anywhere from $250 to thousands in the United States.
One Beyoncé fan in Europe asked Reddit users why they were able to get a ticket for just $300 when Americans were forced to pay thousands. As it was explained, many European countries put a cap on the fees and have laws that regulate sites like Ticketmaster. Some countries don't even have Ticketmaster's site at all, and tickets are sold through the venue or theater.
Biden resolved to kill junk fees, not just for Swifties but for all consumers who are told something is one price only to find out they're charged after the fact with "processing fees," a "convenience fee," "baggage fees," "late fees," or other such demands. The problem, however, is that it could cut into corporate America's profits.
"Frustrated with airlines that charge passengers steep fees to check bags and change flights, President Joe Biden last fall embarked on a campaign to crack down on the practice — and force companies to show the full price of travel before people pay for their tickets," explained the Post.
But behind the scenes, the fight has become Wall Street Goliath with millions in lobbying cash, eager to hand it to lawmakers in exchange for their votes to kill Biden's bill.
"According to a Washington Post review of federal lobbying records and hundreds of filings submitted to government agencies. The fees together may cost Americans at least $64 billion annually, according to a rough White House estimate, underscoring its efforts to deliver financial relief to families grappling with high prices," said the report.
While federal regulators were fighting credit card late fees, companies that were issuing the cards pulled in over $14.5 billion from those fees. It means a lawsuit is likely on the horizon.
"Charter, Comcast and other cable giants similarly have warred with Washington through their lobbying groups, bucking federal efforts to ensure they present accurate, complete data about service charges," said the Post. So have some casinos, insurers and the owners of large apartment buildings, which have fiercely fought new federal regulations that might punish them if they conceal their true prices."
Meanwhile, according to the Department of Transportation, the airline industry brought in $6.7 billion in baggage fees.
Lael Brainard, the director of the White House National Economic Council, told the Post, Americans "don't like being taken for suckers. And we’re going to continue our efforts to make sure that across all industries, consumers have the right to see all-in pricing right up front."