FTC’s “Junk Fees” Rule Puts Predatory Towing in the Spotlight

Tow companies nationwide should take note of new federal rules targeting so-called “junk fees.” The FTC’s regulation—now part of Title 16, CFR Part 464—prohibits hidden or misleading charges in any advertised pricing. This means if your company advertises rates, you’re now federally obligated to honor them or risk legal action.

Attorneys John Dempsey and Martin E. Cain recently explained how this rule could become a tool for trucking companies disputing excessive charges. Examples of predatory billing include $10,000 for a boot removal or extra charges for equipment already in use. If your invoices aren’t transparent or itemized clearly, they could raise red flags.

North Carolina is also moving forward with a bill to criminalize booting commercial trucks and outlaw cargo "ransom" tactics. Similar reforms have passed in states like Virginia, Florida, and Colorado.

To protect your business, review your posted rates, ensure clarity in all documentation, and follow local and federal regulations.  Source: https://www.overdriveonline.com