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FTC bans hidden junk fees in hotel, event ticket prices

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Re: FTC bans hidden junk fees in hotel, event ticket prices

#221
post #155

Earlier quoted context omitted.

> It somehow works almost anywhere outside of NA? Is North America unique in allowing local municipalities to set their own taxes? > It's really not a crazy concept - estimate it based on geolocation and say "more exact will be available once you enter your address". That’s exactly what happens now, except the advertised price is actually correct instead of an “estimate”. I have an intuitive sense for local tax. How…

Out of my head, if I recall correctly, Australia, Japan, Denmark do local municipal taxes as well (some are more flat than others). Anyways, all I was saying that it's a solved UX problem, and the reason why you're not getting full price is because A/B testing has shown that when customers see the complete price, they get a shock and less likely to buy the item. This doesn't have much to do with websites caring about…

So are estimated prices being advertised in Australia, Japan, or Denmark? Why is North America uniquely susceptible to A/B testing?

Municipal taxes are not an edgecase in the United States at least. They’re very much the norm, especially in telecommunications.

Re: FTC bans hidden junk fees in hotel, event ticket prices

#222

Earlier quoted context omitted.

What do you mean? Minimising monopolies is how you keep the free market competitive.

Free competition should mean that you don't get punished for winning. There is no sport that punishes a competitor who is constantly winning, as long as they are competing fairly. Imagine Schwarzenegger being banned from Mr Olympia or Gretzky being banned for life from minor league ice hockey. So that the other competitors are given a fair chance of winning. But every sport punishes competitors who are cheating or be…

That’s because business isn’t an abstract activity that doesn’t affect anyone’s real life.

Re: FTC bans hidden junk fees in hotel, event ticket prices

#223

Earlier quoted context omitted.

But then that becomes unpaid bills and they send you to collections.

You can dispute debt in collections by requesting proof of the debt. The consumer protections in that area (debt collections) are quite a bit more developed than any consumer protections about intentional procedural inefficiency when cancelling service.

If you never actually took the steps to cancel your contract won't they be able to prove your debt via the existence of a non-cancelled contract?

Re: FTC bans hidden junk fees in hotel, event ticket prices

#224

I'd be interested to see whether a movie theater is considered an event. Our local one charges a convenience fee when buying online because ... they can? I wish they banned all mandatory add-ons. If I don't have the choice it should be part of the base price. The touristic railroad near me advertises a price, and then slaps on a mandatory Fuel Surcharge and Historic Preservation Fee. Excuse me? How can I compare what…

when you buy a ticket online, you are actually buying an option on the ticket, because you can go in and refund it at any time before the movie starts. the “convenience fee” is the option premium. it would be fairer if this were opt-in. Some e commerce sites now allow you to pay a few extra dollars to have free returns, something similar would work for movies.

No, this is complicating things. A physical ticket can also be refunded prior to show time. It's not an option at all, it's just a fee. They are charging you to 1) pick your seat 2) not have to show up early 3) peace of mind knowing your spot is reserved - all of those things are conveniences in the purest sense of the word. In many cases, the fee is more closely related to a platform fee going to fandango or similar service.

Re: FTC bans hidden junk fees in hotel, event ticket prices

#225

They should ban hidden taxes too. The sticker price should be the final price.

I remember shopping in Japan. The price on the tag, is exactly what you pay (same with services, like hotels). Since this is Japan, it's a high price, but no surprises. Also, the service is amazing , and they won't accept tips. If you leave money on the table, they will chase after you, to give it back.

This is the norm in Europe.

It's crazy to me that in the US I can never be sure how much I'll end up paying...

Re: FTC bans hidden junk fees in hotel, event ticket prices

#226
post #3

An excellent change. It's unfortunate that stewardship of the committee will soon change hands as Khan has been a great advocate for fair contracts between companies and consumers during her tenure.

As a free market fan, Khan seems to have been pretty terrible. But this looks genuinely good! It's basically banning fraud. ---[EDIT], since everyone is asking for reasons here are two libertarian/conservative critiques: • https://reason.com/2024/11/07/good-riddance-lina-khan/ • https://archive.ph/IjNmZ

Ah, Reason.

The paragon of good and sensible arguments like, "Legalize Insider Trading".

This author has not written one of those pieces, but she is in good company with the ones who did.

Re: FTC bans hidden junk fees in hotel, event ticket prices

#227
post #196

Earlier quoted context omitted.

In the EU, the site guesses the location based on the IP, writes "Delivery to Denmark [Change?]" and shows prices with Danish VAT. If I'm signed in to the shop from making a previous purchase, they will use the location of the previous purchase.

If Denmark has just one sales tax rate or VAT, then maybe that can work OK for Denmark. But this isn't about Denmark -- it is about the US. In the US, there are over 13,000 different sales tax jurisdictions, and each one of them may have a different tax rate. I wish the best to anyone who would ever be tasked with sorting that out with any semblance of accuracy using IP geolocation databases.

Maybe not have 13000 different sales tax jurisdictions?

Just a thought...

Re: FTC bans hidden junk fees in hotel, event ticket prices

#228

I'm glad (if it doesn't get reversed by the next administration). But I'm also baffled... how did this take this long? Why wasn't it done way back when they did it for airline tickets, in 2012?

Because details matter and are hard. If you don't get the details just right a court will strike the whole thing down for good reason.

It’d be a shame to ask hard work of our government that spends a trillion of our dollars every year

Re: FTC bans hidden junk fees in hotel, event ticket prices

#229

Earlier quoted context omitted.

Correct, it doesn't. IP geolocation is nowhere near precise enough. Remember, sales tax isn't something big like state-level. It's literally town -level, including tiny towns. Two sides of the same street can have a different sales tax. Not to mention all the extra rules, such as individual clothing items under $110 being exempt in New York.

It somehow works almost anywhere outside of NA? It's really not a crazy concept - estimate it based on geolocation and say "more exact will be available once you enter your address". The problem is, that genuinely negatively affect the sales because people see the true price of things.

Apparently they can track you to the nearest 5m 24 hours a day, figure out that your teenage daughter is pregnant and replicate your likeness and voice perfectly - but when it comes to sales tax its an intractable problem.

Re: FTC bans hidden junk fees in hotel, event ticket prices

#230

Earlier quoted context omitted.

Of course it's controversial. They do this to increase profits. A certain portion of the population is pro-profit at virtually any cost. It might seem like Dish employees wake up every day and say, "What can we do today to screw our customers even more?" But usually they're just trying to find ways to make more money.

Dish knows their satellite TV business is on the way out. Their strategy is to maximize the present value of that business by retaining and squeezing as many of those customers as much as possible, slowing the decline and pulling as much money out of that vertical for as long as they still have it, so that they can reinvest that cash into new verticals with more promise.

The ironic part of all of this, I would have pay linear TV services if it was cheaper - 50 bucks a month for the whole house, and I suspect they could have 30%+ more customers.
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