An airline executive testifying before Congress offered this explanation about different prices charged for carry-on luggage: “we want the best people to get the best prices”.  What?  Who are the best people?  Virginia’s new law on these crazy surprise (or junk) fees won’t outlaw these fees but it will require many businesses to disclose what you are being charged before you commit to a purchase.

Unfortunately, airlines are exempt from our new law along with car dealers, utilities, and phone service providers.   Food delivery service companies are covered by the Fair Food Delivery Act which was also amended by this new legislation (details below).

Virginia’s new law (Va Code 59.1-608) requires all businesses  that sell goods and services to the public to clearly and conspicuously advertise or display the total price which shall include all mandatory fees or surcharges. 

“Mandatory fees or surcharges” includes any additional fee or surcharge that must be paid in order to purchase the good or service being advertised. But it does not include taxes or reasonable postage or shipping fees.

“Clear and conspicuous” means in larger type than the surrounding text, or in contrasting type, font, or color to the surrounding text of the same size, or set off from the surrounding text of the same size by symbols or other marks, in a manner that clearly calls attention to the language.

The new law has some specific guidelines for how certain businesses can comply with the law:

• Restaurants and hotels must disclose mandatory tips.
• Cable and broadband providers are OK if they follow federal regulations.
• Sellers of tickets to live events must comply with new FTC rule.
• Price variable suppliers
  • A company that offers services the total price of which is determined by consumer selections or preferences or dependent on distance or time.
  • These companies must disclose
    • the factors determining the final price,
    • any mandatory fees or surcharges associated with the transaction, and
    • that the total cost of services may vary.
  • Food delivery companies must comply with the amendments to the Fair Food Delivery Act.

Amendments to the Fair Food Delivery Act require a food delivery platform to:

• Have a clear and conspicuous disclosure of any additional fee or percentage charged and
• after a consumer selects items for purchase, but prior to checkout, display a subtotal page that itemizes the price of such selected items, and any additional fee or percentage included in the total cost.

Landlords

Landlords are not exempt from the new junk fee law, so they must clearly and conspicuously advertise or display the total price which shall include all mandatory fees or surcharges. The Virginia Residential Landlord and Tenant Act also requires landlords to give tenants a fee disclosure statement.

The new law is a win for fairness in the marketplace, for consumers and for all ethical businesses.  Thank you, Senator Pekarsky, Delegate McClure and Freedom Virginia for leading the two-year fight for this new law.

Now what?  All of us need to make sure businesses follow this new law.  If you think a business is not following the new law:

• Tell the business what they are doing wrong.
• Complain to the Virginia Attorney General.
• Both the Attorney General and consumers can file a lawsuit against companies that violate the law.
• Use social media to call out companies who refuse to follow the law.

We have an important new law, and we all need to do our part to ensure that we have a fair marketplace where you can compare prices and be informed before you decide how to spend your hard-earned dollars.

-by Jay Speer, VPLC Executive Director

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