Press Release

Advocates, Legislators Take Action to Curb Hidden Junk Fees and Lower Costs

03. 19. 2025

New Legislation Aims to Crack Down on Predatory Pricing, Ensure Transparency, and Support Small Businesses

SPRINGFIELD, IL – Taking action to make daily living more affordable, Economic Security Illinois Action has filed the Illinois Junk Fee Transparency Act (HB62 and SB1486) to curb the widespread use of deceptive and excessive junk fees that drive up costs for Illinoisans. Sponsored by Representative Bob Morgan and Senator Omar Aquino and in partnership with Illinois Attorney General Kwame Raoul, this legislation mandates transparency and empowers the Attorney General to crack down on businesses that obscure actual costs with hidden fees.

The Illinois Junk Fee Transparency Act targets mandatory fees tacked onto purchases that provide little to no value and are not disclosed to consumers upfront. These deceptive practices, often labeled “convenience” or “processing fees,” impact Illinoisans across a range of purchases, including booking a hotel, buying tickets to a live event, or ordering food via delivery apps. These charges lead to inflated costs for everyday consumers, with Consumer Reports estimating the average family of four loses approximately $3,200 a year on junk fees. Economic Security Illinois’ legislation puts Illinois on track to join a growing national movement to protect consumers from unfair pricing tactics.

“Every Illinoisan has been frustrated by surprise fees that drive up costs at checkout,” said Sarah Saheb, Director, Economic Security Illinois Action. “This bill puts an end to that unfair practice by ensuring transparency in pricing, so families know exactly what they’re paying for before they hit ‘purchase.’ Economic Security Illinois is committed to ensuring Illinoisans can freely and fairly participate in our economy, and this bill advances that critical mission.”

Junk fees also harm small businesses and independent workers. This bill takes action to protect these driving forces of local economies. First, this bill prevents corporations from taking advantage of the independent contractors they employ through deceptive payment practices. In a recent lawsuit led by Attorney General Kwame Raoul, DoorDash resolved allegations that it misrepresented tips as increasing delivery driver wages, when in fact, tips were used to replace DoorDash’s contributions to driver wages. This legislation would curb similar deceptive practices.

“Junk fees harm consumers and create an unfair playing field for businesses,” said Illinois Attorney General Kwame Raoul. ”Small businesses that provide honest, upfront pricing struggle to compete against larger corporations that lure customers in with artificially low prices, only to hit consumers with extra charges later. The Illinois Junk Fee Transparency Act will level the playing field by requiring businesses to post full prices upfront and allow our office to hold bad actors accountable.”

Next, this legislation helps create a level playing field for businesses by allowing consumers to accurately compare the cost of different goods and services before making a purchase. For businesses, junk fees distort competition and unfairly privilege companies that focus on deceptive pricing strategies rather than on making better products. Companies that price fairly and transparently may seem more expensive in terms of their sticker prices, and companies with genuinely lower prices will not appear cheaper when they are competing with companies that cloak their prices in junk fees.

For example, a bed and breakfast in Galena might appear more expensive than a hotel chain when booking a reservation, when in reality, junk fees tacked on after the reservation will result in the hotel being more expensive. Curbing hidden junk fees ensures fair competition and incentivizes companies to compete by lowering costs and improving quality instead of hiding fees.

“It’s our job to ensure consumers are protected,” said Representative Bob Morgan. “They shouldn’t have to worry about hidden fees and deceptive pricing when the cost of basic necessities is increasing faster than their incomes. This legislation is about transparency and fairness, restoring honesty in pricing.”

“Junk fees are predatory practices that disproportionately impact communities of color and those whose first language is not English,” said Leader Omar Aquino. “The deceptive practice of corporations imposing excessive fees with no transparency are hurting the pockets of working families, costing them thousands. With this bill, we can end this unfair practice and protect Illinois consumers.”

Industries covered by the Illinois Junk Fee Transparency Act include:

• Hotels and lodging
• Food delivery apps  
• Independent contractors
• Live-ticketed events
• Restaurants