House Bill 537 – Junk Fee Elimination Act — Sponsor Testimony Provided by Representative Michele Grim
Summary
Sponsor testimony by State Representative Michele Grim on House Bill 537, the Junk Fee Elimination Act, dated November 13th, 2024. Grim says fees called “service fees,” “processing fees” or “convenience charges” cost American consumers an estimated $90 billion a year. According to the testimony, the act would require all businesses to display the total price of items and services, including mandatory fees, in a clear manner, with exceptions for government taxes and for delivery fees that must be disclosed before the supplier accepts payment. Grim also says the bill would foster fairer competition by prohibiting bad actors from distorting prices.
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“House Bill 537 – Junk Fee Elimination Act — Sponsor Testimony Provided by Representative Michele Grim.”
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Columbus Office 43rd House District
Vern Riffe Center Toledo (p) | Ottawa Hills
77 S. High Street
14th Floor
Columbus, Ohio 43215-6111 Standing Committees
Transportation, Ranking Member;
(614) 644-6017 Behavioral Health;
Rep43@ohiohouse.gov Finance;
Government Oversight;
www.ohiohouse.gov Public Health Policy;
Michele Grim Economic & Workforce Development
State Representative
Before the House State and Local Government Committee
House Bill 537 – Junk Fee Elimination Act
Sponsor testimony provided by Representative Michele Grim
November 13th, 2024
Chair Johnson, Vice Chair Manchester, Ranking Member McNally, and all members of the
Commerce and Labor committee, thank you for the opportunity to provide sponsor testimony
regarding House Bill 537. I would also like to thank my joint-sponsor Representative Munira
Abdullahi.
Ohio families are struggling with high costs, and big corporations are forever seeking new ways
to raise prices to pad their profits.
Whether they’re called “service fees,” “processing fees” or “convenience charges,” these
predatory fees cost American consumers an estimated $90 billion a year. These fees may pop up
when you pay buy a car, pay your credit card or cellphone bill, order delivery for dinner, and
even when you pay your rent.
The Junk Fee Elimination Act will crack down on deceptive pricing and protect consumers by
requiring that all businesses display the total price of items and services, including mandatory
fees, in a clear manner. There are exceptions for government taxes and for delivery fees that
must be disclosed before the supplier accepts payment.
The money Ohio families are losing to junk fees is money we’re not saving, investing, or
spending on actual goods and services. Because these fees are not disclosed or explained, we
often do not realize this money has been charged for this purpose until it’s gone. This bill will
not only help consumers but also foster fairer competition in the marketplace by prohibiting bad
actors from distorting their prices.
Chair Johnson, Vice Chair Manchester, Ranking Member McNally and all members of the
Commerce and Labor committee, thank you so much again for the opportunity to share
testimony. I would be happy to take any questions the committee may have.
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