Canada’s Federal Budget To Target Consumer ‘Junk Fees’

The federal budget that is now being put together in Ottawa is likely to crackdown on hidden or unexpected consumer fees, commonly known as “junk fees.”

Multiple media repots say that the Government of Canada aims to prevent companies from tacking on additional fees to the initial price of a product or service that could lead to the total cost being inflated.

Reports say the Liberal government of Prime Minister Justin Trudeau plans to work with regulatory agencies and provincial governments to cut down on the junk fees Canadians pay.

The regulators involved in the crackdown would include the Competition Bureau, the Financial Consumer Agency of Canada and the Canadian Radio-television and Telecommunications Commission (CRTC).

The types of fees likely to be targeted in the budget include phone and internet surcharges, as well as add on fees for airline flights and concert tickets.

In his State of the Union address earlier this year, U.S. President Joe Biden called on Congress to push back against junk fees and surcharges that cause consumers to pay more.

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The U.S. president pledged that his administration will work with state and local governments to identify ways to reduce junk fees.

Canada’s federal budget will be delivered in Parliament on March 28 after financial markets close.