KTRH Local Houston and Texas News

KTRH Local Houston and Texas News

KTRH-AM covering local news from Houston and across Texas.

 

The FTC's new push toward government overreach and power

Washington D.C. has run rife with unchecked power in recent years, but none more so than during the Biden Administration. The President has issued countless executive orders to bypass congressional disapproval of various subjects, like rolling back Donald Trump's energy policies, or his recent border order.

The Federal Trade Commission (FTC) is part of those cahoots from the Administration, and they are now pushing forward with new plans to further push along their almost unstoppable power. They are proposing a new rule that will ban businesses from running up bills with fees, essentially bring an end to the 'junk fees' places charge. They would like to create transparency, and also want to force businesses into offering lower prices and hurt their bottom line.

On the surface, it seems like a great idea. Getting rid of all those extra delivery fees, and other things? Most people would see that as a plus, probably. But President of Americans for Limited Government Rick Manning says these junk fees serve an important purpose: they give us choice.

"They are trying to drive everything into a common box, rather than allowing people to use common sense and make choices for themselves," he says.

An example is when you buy pizza. Usually, people have it delivered. A $12 pizza suddenly costs $27 with all the extra fees. Now, of course, you do not have to do that. You can just go into the place, and eliminate that delivery fee, plus tip. There is also the choice you have to go to a cheaper place.

That is what these fees do, they spur choice and competition. But Biden and the Democrats do not want that. They would rather their personal choices be the monopolies and leave other businesses out in the cold.

"They are attempting to create some false narrative, where we do not have inflation, we have these companies putting in these junk fees, driving up prices...which is just false," he says.

By Biden's logic, gas stations adding on those junk fees is why you pay over three dollars a gallon. Not the fact that he deliberately sabotaged the oil and gas sector. Another prime showing of shifting the blame.

In the end too, all this ban ends up doing is hurting the consumer.

"You sue the service, you should pay for it, if not, you should not pay for it...but this causes the opposite of transparency...this is government forcing a one-price-fits-all policy, regardless of if you are getting the same product," he says.

These fees though are also how businesses stay alive, much less compete.

"The cost of doing business is the same...the way they get there in their price points is what they offer different," he says.

But even with this fancy potential rule from the FTC, it still will not move the needle much, and the fees will still be there.

"Businesses do not exist to not make a profit...these fees reflect cost of doing business...they will not stop charging more money just because these fees go away," says Manning.

Until some checks and balances rise up though, the FTC is poised to directly hurt competition among businesses.

FTC federal trade commission written in business law textbook

Photo: iStockphoto


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