12/17/2024
FTC "Junk Fee" Rule
The Federal Trade Commission (FTC) released its final version of their "Junk Fee" rule today, notably excluding the towing industry. This final rule represents a significant departure from the FTC's earlier position, exempting the towing and recovery industry from any pricing consequences. The FTC recognized the widespread opposition from multiple sectors, including the towing industry, as a factor in this revision.
The NOCSHC has been a staunch advocate for the towing industry, responding to the FMCSA's appeal to the FTC to address "predatory towing" practices within its regulations. In response, the NOCSHC promptly engaged two federal law firms and a federal lobbying team to oppose this proposed rule change. This victory showcases the effectiveness of the National Open Commerce Safer Highways Coalition's lobbing efforts with the leadership of our Board of Directors. Our in-person testimony to the FMCSA in Washington DC emphasized the rules potential overreach and brought to light the fact that the Towing Industry is not guaranteed payment for clearing the highways and restoring traffic flow.
The final rule, now accessible on the FTC's website (link below), adopts a targeted approach, concentrating solely on live-event ticketing and short-term lodging. This significant enhancement ensures that the towing and recovery industry remains unaffected.
Federal Trade Commisions Final Rule:
https://www.ftc.gov/system/files/ftc_gov/pdf/r207011_udf_rule_2024_final_0.pdf
We are truly thrilled with the positive outcome we have achieved; however, we recognize that this is just the beginning of an ongoing journey. We anticipate collaborating with all stakeholders to address the challenges that lie ahead in the towing and recovery industry. Together, we will not only strive to safeguard our vital sector but also work diligently to inform and educate policymakers about the significance and intricacies of our profession.
Let us unite in our efforts to ensure a brighter future for our industry!
www.nocshc.com
