Whether you're renting an apartment, buying a concert ticket, booking a hotel, or financing a car, you've likely encountered fees that seem arbitrary, excessive, or not disclosed upfront. These so-called “junk fees” have drawn increasing scrutiny, not only from consumer advocacy groups but also from government agencies.
At Scott Hirsch Law Group, PLLC in Coconut Creek, Florida, Attorney Scott D. Hirsch often receives inquiries from clients confused or frustrated by unexpected fees attached to everyday transactions. Fortunately, he's here to explain what junk fees are, examine where and why they occur, consider their legality in Florida, and give guidance to consumers who wish to challenge or avoid them.
What are Junk Fees?
The term "junk fee" isn’t a formal legal term, but rather a colloquial phrase used to describe additional charges that are perceived to be hidden, excessive, or deceptive. These fees are often:
Not clearly disclosed until the final stages of a transaction.
Disproportionate to the service being provided.
Mandatory in practice, even when labeled as optional.
Structured to extract additional money without adding real value.
In many cases, consumers aren’t made aware of these charges until they are ready to complete a purchase or sign a contract. This lack of transparency can make it difficult to compare prices or to make informed financial decisions.
Common Industries That Charge Junk Fees
Junk fees aren’t confined to one industry. They can be found across a broad range of sectors, including:
Hospitality: Resort fees, destination fees, and early check-in fees.
Telecommunications: Administrative fees, regulatory recovery charges.
Event ticketing: Service fees, convenience fees, and processing fees.
Banking and finance: Overdraft fees, returned item fees, and account maintenance fees.
Real estate and housing: Application fees, lease preparation fees, and amenity fees.
Automotive sales and rentals: Documentation fees, reconditioning fees, and dealership prep charges.
These fees often appear small in isolation, but they can accumulate quickly and substantially increase the total cost of a transaction. In some cases, they may even be the deciding factor in whether a deal is financially viable.
Legal Guidelines Surrounding Junk Fees
The legality of junk fees is nuanced. There is no single statute in Florida or at the federal level that outright bans all junk fees. Instead, these fees may be subject to consumer protection laws, contract principles, and specific regulations applicable to certain industries.
Federal Regulations
At the federal level, agencies such as the FTC and the CFPB have expressed growing concern over the proliferation of junk fees. These agencies have the authority to investigate and regulate unfair, deceptive, or abusive acts and practices under laws such as the Federal Trade Commission Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act.
While federal regulation is still evolving, businesses that fail to disclose fees transparently may already be violating existing laws prohibiting deceptive trade practices.
Florida Law
Florida has its own consumer protection laws that can apply to junk fees. The Florida Deceptive and Unfair Trade Practices Act (FDUTPA) prohibits “unfair methods of competition, unconscionable acts or practices, and unfair or deceptive acts or practices in the conduct of any trade or commerce.”
If a business imposes a fee that isn’t disclosed in a straightforward and timely manner, or if the fee appears arbitrary and unrelated to any actual cost, there may be grounds for a legal challenge.
Additionally, certain industries in Florida have more specific regulations. For instance:
Landlords must adhere to strict rules regarding the fees they can charge tenants and how those fees must be disclosed in lease agreements.
Auto dealers are regulated by Florida’s Department of Highway Safety and Motor Vehicles, which limits certain types of fees and mandates disclosure requirements.
Real estate brokers must comply with both state laws and the rules of the Florida Real Estate Commission (FREC) concerning transaction fees.
Businesses in these industries must pay close attention to make sure any fees they charge are legally compliant.
Types of Junk Fees Commonly Disputed
While almost any fee can be questioned under the right circumstances, the following are frequently contested in Florida:
Lease application fees: Florida law permits landlords to charge application fees, provided they are reasonable and disclosed in writing. Some landlords may try to pad profits with "processing fees" or "background check surcharges" that far exceed the actual cost of service.
Dealer fees on car sales: Often labeled as "dealer prep" or "document" fees, these charges are sometimes added late in the sales process. Florida law requires dealers to include such fees in the advertised price, but enforcement is uneven.
Resort and amenity Fees: Hotels and vacation rentals often add daily fees for use of the pool, gym, or Wi-Fi. If these fees aren’t disclosed in the initial price quote, they may violate deceptive pricing rules.
Ticketing fees: Consumers purchasing event tickets often face a maze of fees added at checkout. These include "processing fees" and "facility charges," which are rarely explained in detail.
Bank fees: Overdraft protection services can result in fees that aren’t just unexpected but recurring. In some cases, banks reorder transactions to maximize fee income—a practice the CFPB has actively investigated.
If you suspect that a fee you’ve had to pay is a junk fee, don’t hesitate to reach out to an experienced attorney. You may be able to challenge the fee.
How to Identify and Challenge Junk Fees
While regulatory bodies are ramping up enforcement, consumers aren’t powerless. With a proactive approach, it’s possible to identify and even avoid many junk fees. Here are some strategies:
1. Ask Questions
Asking the following questions can be a good starting point to identify junk fees:
What is this fee for?
Is it optional or mandatory?
Can it be waived?
Was it disclosed in the initial pricing?
The answers to these questions can help you determine whether a fee can be contested.
2. Demand Written Disclosures
Request a written breakdown of all fees before signing any contract or making a payment. In Florida, many industries are required to provide such disclosures upon request.
3. Negotiate
Especially in real estate and auto transactions, junk fees can sometimes be reduced or eliminated through negotiation. Don’t be afraid to walk away from a deal that includes unexplained or excessive charges.
4. File Complaints
If you believe a business has charged an unfair or deceptive fee, you can file complaints with:
The Florida Attorney General's Office
The Federal Trade Commission
The Consumer Financial Protection Bureau
Local Better Business Bureau chapters
Working with a qualified attorney will make it easier to gather the necessary documentation when filing complaints.
5. Consult an Attorney
In cases involving significant financial harm or repeated deceptive conduct, legal action may be appropriate. Scott Hirsch Law Group, PLLC, can help assess whether a business’s practices violate FDUTPA or other relevant laws and guide you through the complaint process or civil litigation if necessary.
Potential Penalties for Businesses
Businesses that engage in deceptive or unfair fee practices in Florida face a range of consequences, including:
Civil penalties and fines
Class action lawsuits
Injunctions and orders to cease unlawful practices
Reputational damage and loss of consumer trust
Under FDUTPA, aggrieved consumers may also be entitled to recover damages, attorney’s fees, and court costs. This can serve as a powerful deterrent against the use of junk fees in future transactions.
Contact a Consumer Protection Litigation Attorney Today
Have inquiries about a questionable fee on your rental agreement, auto sale, or financial transaction? Reach out to Scott Hirsch Law Group, PLLC, for experienced legal assistance. Located in Coconut Creek, Florida, and serving clients across the United States, Attorney Scott D. Hirsch is committed to protecting your rights and holding businesses accountable for deceptive or unfair practices. Contact him today to schedule a consultation.
