Piggybacking on former President Joe Biden’s efforts to fight “junk” fees, Illinois legislators are once again trying to get businesses like hotels, restaurants and live ticket companies to disclose all fees before customers can make a decision on whether or not to pay.
The Illinois Junk Fee Ban Act, sponsored by State Rep. Bob Morgan, D-Deerfield, and Sen. Omar Aquino, D-Chicago, also has the support of Illinois Attorney General Kwame Raoul, who is hoping to target deceptive payment practices. A similar measure stalled in the Illinois General Assembly last session, but lawmakers are making another concerted push with airlines now taken out of the equation.
The bill applies broadly to Illinois businesses, but plans to target hotels and lodging, restaurants, food delivery apps, live-ticketed events and independent contractors. So-called “junk” fees include service fees for popular concerts, resort fees for hotels and additional fees tacked onto restaurant bills. The goal is to require businesses to disclose all fees before a customer can make a decision on the transaction.
A Consumer Reports analysis found that an average family of four can lose about $3,200 a year on junk fees.
Morgan said he recently spotted a 3% health insurance charge on a restaurant menu, which he had no problem with. But the bill eventually included another 3% service charge for a fee that hadn’t been disclosed.
“We as consumers make a choice all the time about what we pay for and when we’re going to price shop, but if we are blind to the actual cost of things because they’re hiding the fees, then we’ve got a serious problem,” Morgan said.
The Illinois Hotel & Lodging Association is neutral on the measure but is engaged in negotiations.
“The hotel industry supports efforts to increase price transparency for guests, including proactively disclosing fees during the initial booking process,” Keenan Irish, vice president of government relations and member engagement for the Illinois Hotel & Lodging Association, said in a statement. “We appreciate the proponents’ willingness to address our technical concerns, and while we are currently neutral on the legislation, negotiations are ongoing to provide further clarity on a few details.”
The current bill excludes wholesale clubs, car rental companies, airlines and broadband or satellite internet companies.
Raoul last year settled a lawsuit with DoorDash amid allegations the company violated the Illinois Consumer Fraud and Deceptive Business Practices Act by misrepresenting that tips would increase drivers’ pay. The company ended the practice in 2019 — but paid out $11.2 million to 79,000 workers who made deliveries in Illinois between July 2017 and September 2019. The legislation is hoping to ban similar practices, and it would allow Raoul to enforce violations of the act as an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act.
Biden in his 2023 State of the Union speech said his administration would tackle “junk” fees, and urged Congress to pass the Junk Fee Prevention Act. The measure stalled in the Senate in 2023.
The Federal Trade Commission in December 2024 finalized a “junk” fee rule in the waning days of the Biden administration, which targeted fees for short-term lodging and ticketing services. Failing to disclose a fee would constitute an unfair or deceptive practice.
Andrew Ferguson, then an FTC commissioner, was the lone dissenter to the rule. Ferguson was chosen by President Donald Trump to serve as FTC chairman in January. The Junk Fees Rule, however, is subject to the Congressional Review Act, and it’s unclear whether Congress will approve it.