FTC “Junk Fee” Rule Announcement: Towing Industry is Not Included
Towing and Recovery Association of America (TRAA) press release:
On December 17, the Federal Trade Commission (FTC) has released its “Junk Fee” rule. As a direct result of TRAA’s efforts, we are thrilled to share that the rule does not include the towing industry. The final rule is a significant reversal by the FTC and completely avoids any pricing implications for the majority of US businesses, including the towing and recovery industry. In its justification for this retreat, the FTC notes the broad pushback received from many sectors, including the towing industry, and twice cited TRAA’s response to the proposed rule.
The final rule, which is now available on the FTC’s website, shifts from a so-called “industry-neutral” approach, in which virtually any business transaction could fall under its jurisdiction, to a targeted approach that focuses only on live event ticketing and short-term rentals. This is a remarkable improvement that will leave the towing and recovery industry completely out of harm’s way.
This year, TRAA has relentlessly advocated for this outcome for the towing industry following the Federal Motor Carrier Safety Administration’s (FMCSA) request to the FTC for the inclusion of “predatory towing” practices in the rule. TRAA immediately submitted an official industry response to FTC Chair Khan, requested an informal hearing, and scheduled meetings with many FTC commissioners. Understanding that political pressure is key, TRAA also met with numerous Members of Congress to gain support for the industry’s position. These efforts resulted in both a bi-partisan letter from Congress to the FTC urging the agency to leave the towing industry out of the rule and the U.S. House Appropriations Committee Financial Services and General Government appropriations report for Fiscal Year 2025 including pro-industry language.
TRAA has led the way consistently through this process and the work put in is resulting in incredible outcomes. While we are delighted with this outcome, we expect this to be a continuing issue and look forward to partnering together on future efforts to protect the towing and recovery industry and to educate policymakers on the importance and complexity of our work. Thank you all for your advocacy, your insights, your time, and your passion.
Please do not hesitate to contact TRAA with any questions.
Alyssa Ring
Director, Federal Government Affairs
Tremont Strategies Group (TSG)