Is this market failure?
Suppliers seem to inflate prices by adding on various fees. I think we've all dealt with this.
Uneven information.
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Frustrated with airlines that charge passengers steep fees to check bags and change flights, President Biden last fall embarked on a campaign to crack down on the practice — and force companies to show the full price of travel before people pay for their tickets.
It would be too difficult to disclose the charges more clearly, warned Doug Mullen, the deputy general counsel at Airlines for America, an industry lobbying group representing the three carriers. Testifying at a federal hearing in March, he said the new policy would only cause customers “confusion and frustration” — and, besides, the extra costs for bags and other services historically have resulted in “very few complaints.”
“The department should not regulate in this area,” Mullen added.
Since then, the Biden administration has broadened its efforts to expose or eliminate “junk fees” throughout the economy, touching off a groundswell of opposition from airlines, auto dealers, banks, credit card companies, cable giants, property owners and ticket sellers that hope to preserve their profits.
Behind the scenes, these corporations have fought vigorously to thwart even the most basic rules that would require them to be more transparent about hidden charges, according to a Washington Post review of federal lobbying records and hundreds of filings submitted to government agencies. The fees together may cost Americans at least $64 billion annually, according to a rough White House estimate, underscoring its efforts to deliver financial relief to families grappling with high prices.
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