The Feds Are Cracking Down On 'Junk Fees' & Phone Bills, Concert Fees & More Could Get Cheaper

The Government of Canada has announced its plans to crack down on "junk fees" as part of the federal budget for 2023.

On Tuesday, March 28, the feds said they'd be taking action to work with regulatory agencies as well as individual provinces and territories in order to reduce costs for Canadians.

"Unexpected, hidden, and additional fees add up quickly," says the government. "From internet overage charges, to roaming fees, to additional airline charges, Canadians deal with junk fees every day."

According to the Consumer Financial Protection Bureau, junk fees can include service charges or "mystery fees" that get tacked on to bills, meaning the amount you're actually spending can be much higher than what you initially expected.

"When companies charge excessive fees on top of the upfront price, it’s difficult or impossible to comparison shop based on actual cost," says the agency.

It says common examples are costs like late fees, fees charged to pay a bill, prepaid card fees, closing costs and home buying fees, fees for not having enough money or inactivity fees, to name a few.

The plan to increase transparency in prices and reduce junk fees could extend to concert fees, roaming charges, baggage fees and "unjustified" shipping costs, according to the government.

To do so, the feds say they'll "strengthen existing tools or create new ones" to protect Canadians from hidden prices that can end up taking an unexpected toll on your wallet.

The move comes one month after U.S. President Joe Biden called for the Junk Fee Prevention Act to get passed by Congress so that "companies stop ripping [Americans] off."

He called out companies that tack on service fees rather than disclosing them up front, and drew attention to how these small costs can add up.

"Junk fees may not matter to the very wealthy, but they matter to most folks in homes like the one I grew up in. They add up to hundreds of dollars a month," Biden said during the State of the Union.

Cutting down on junk fees is just one of many ways that the government is planning to "make life more affordable for Canadians."

To help those feeling the impact due to the increased cost of groceries, approximately 11 million households will be offered a proposed "grocery rebate."

"Groceries are more expensive today, and for many Canadians, higher prices on essential goods are causing undue stress," says the budget.

If the proposal is passed, a single person with no children would receive up to $234, a couple with two kids would get up to $467 and senior citizens would get around $225.

As well, starting on August 1, 2023, full-time students could get up to $4,200 to help with "the higher cost of living" through proposed changes to Canada Student Grants.

This article's cover image was used for illustrative purposes only.