Washington, D.C. – TechNet, the national, bipartisan network of innovation economy CEOs and senior executives, submitted comments to the Federal Trade Commission’s (FTC) proposed rule on Unfair or Deceptive Fees. The following can be attributed to TechNet President and CEO Linda Moore:
“TechNet’s members recognize the importance of transparency in the sale of consumer goods and services. However, the FTC’s proposed rule seeking to prohibit offering, displaying, or advertising a price for a good or service without disclosing the ‘total price’ would ultimately harm consumers and stifle innovation across our economy.
“In many situations, it is impractical to determine the total price in advance. Innovative companies use pricing models that vary based on a customer’s location and the items the customer seeks to order. In addition, this pricing information is clearly disclosed on these platforms before a consumer finalizes the transaction. By mandating the disclosure of total price, the FTC’s proposed rule would force platforms to either limit options or increase prices for consumers, regardless of the actual costs it takes to fulfill a particular order.
“We believe the FTC’s sweeping proposed rule, as drafted, will undermine efforts by innovative companies to communicate pricing with their customers and urge the Commission to withdraw the proposed rule until more analysis of its consequences are undertaken and the rules’ deficiencies are addressed.”
Read our full comments here.