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D.C. WATCH

‘Junk Fees’ and Our Business

Keeping a close eye on the FTC’s proposal that may unfairly impact bowling.

n a bid to increase pricing transparency for consumers, e ts, leading to a at pricing model that may not accurately
I the Federal Trade Commission has proposed a rule tar- re ect the value of services o ered.
geting the elimination of so-called “junk fees” across various Additionally, local regulations vary widely, with some ju-
sectors of the economy. is aligns with the Biden adminis- risdictions mandating speci c disclosures or fees that could
tration’s broader economic policy objectives, emphasizing con ict with the FTC’s blanket approach to pricing transpar-
fair-market practices and consumer protec- ency. Integrating these diverse pricing models while adher-
tion as central themes. ing to both local laws and the new federal rule presents a
e BPAA is closely monitoring the situa- signi cant operational challenge for bowling centers.
tion. While the BPAA recognizes the value of e broader business industry has voiced strong op-
transparency, the rule does not consider the position to the FTC’s proposed rule, citing concerns over
complexities and daily operational challeng- regulatory overreach and the potential for signi cant legal
BRANDON es unique to bowling centers. e BPAA has challenges. e “major questions” doctrine serves as a
cornerstone of this opposition, with critics arguing that the
expressed concern about the inadvertent
PALUMBO e ects of the proposed rule on bowling cen- FTC lacks the explicit authorization from Congress to enact
ters’ distinctive operational models, high- such a sweeping regulation. ey emphasize that competi-
lighting the necessity for a nuanced approach that equally tion, rather than regulatory mandates, should drive pricing
considers consumer protection and business viability. structures, suggesting that the market itself is better suited to
e FTC’s proposed rule aims to eradicate surprise fees address consumer preferences and pricing transparency.
that have long irritated consumers and obscured the true e BPAA shares these concerns, highlighting the practi-
cost of goods and services. De ned as “junk fees,” these are cal di culties bowling centers would face in implementing
additional charges not initially disclosed or clearly included the rule. e BPAA argues that the unique nature of bowl-
in the advertised price, such as resort fees at hotels or ing center operations — characterized by variable pricing
processing fees for concert tickets. e rule mandates that models and the integration of ancillary services — makes the
businesses incorporate and disclose all mandatory fees in one-size- ts-all approach of the proposed rule unfeasible.
the display price, ensuring consumers are not blindsided by Furthermore, the potential for legal battles not only poses
unforeseen costs. a distraction but also burdens businesses with additional
e proposal has stirred signi cant opposition from vari- legal costs, potentially sti ing innovation and hindering
ous industry groups. ey argue that the FTC, invoking the the ability to o er value to consumers. e call for a more
“major questions” doctrine, overreaches by implementing tailored approach that recognizes the speci c challenges
such sweeping changes without explicit authorization from and contributions of industries like bowling underscores
Congress. is legal framework, underscored by the 2022 the broader debate on balancing consumer protection with
West Virginia v. EPA decision, suggests that the agency may business exibility.
be stepping beyond its regulatory purview, setting the stage e initiative seems to align with demands from consum-
for potential legal challenges. er advocacy groups, re ecting a shared desire to address
In its current form, the rule poses distinctive challenges deceptive pricing practices that can unfairly impact pur-
for bowling centers, many of which o er customers the chasing decisions. However, this approach risks sparing the
option of per-game pricing and hourly rates. is exibility operational needs and complexities of businesses, poten-
enables patrons to choose a pricing model that best suits tially rolling a gutter ball for sectors like bowling centers.
their needs, whether they’re serious bowlers practicing their e BPAA has voiced signi cant concerns regarding the
skills or groups looking for a fun outing. FTC’s proposed rule to eliminate junk fees, underscoring
Furthermore, bowling centers rely heavily on ancillary the potential for unintended consequences that could strain
services such as shoe rentals and food-and-beverage sales the bowling industry. As we navigate these discussions, the
to generate revenue. e rule’s requirement for all-inclusive BPAA advocates for ongoing dialogue between the FTC
upfront pricing could obscure these options, potentially and industry stakeholders to carve out a rule that genuinely
deterring customers who value transparency and choice. bene ts consumers without sidelining the businesses that
Moreover, many bowling centers o er discounts for serve them.
online bookings or payments through speci c channels,
strategies aimed at reducing operational costs and passing Brandon Palumbo is a senior associate with Michael Best
savings to consumers. e proposed rule’s constraints on Strategies. BPAA works with Michael Best Strategies on fed-
such payment-speci c discounts could eliminate these ben- eral and state advocacy.

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