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Record #: O2017-222   
Type: Ordinance Status: Failed to Pass
Intro date: 1/25/2017 Current Controlling Legislative Body: Committee on Finance
Final action:
Title: Amendment of Municipal Code Chapter 2-25 by adding new Section 2-25-095 regarding prohibited acts involving consumer fraud and deceptive practices/hidden fees
Sponsors: Burke, Edward M.
Topic: MUNICIPAL CODE AMENDMENTS - Title 2 - City Government & Administration - Ch. 25 Dept. of Business Affairs & Consumer Protection
Attachments: 1. O2017-222.pdf
Related files: R2019-362
WHEREAS, the City of Chicago is a home rule unit of government pursuant to the 1970 Illinois Constitution, Article VII, Section 6(a); and
WHEREAS, pursuant to its home rule power, the City of Chicago may exercise any power and perform any function relating to its government and affairs including promoting the quality of life and welfare of its citizens; and
WHEREAS, the City of Chicago is dedicated to the protection of Chicago consumers from deceptive business practices; and
WHEREAS, "hidden fees" by businesses hinder effective consumer decision-making and hurt the competitive process; and
WHEREAS, the Obama administration's December 2016 report entitled "The Competition Initiative and Hidden Fees" took aim at a wide range of businesses that charge "hidden fees" including resorts, airlines, telecommunication companies, ticket vendors, banks, and car dealerships; and
WHEREAS, the Obama administration's report emphasizes that "transparent and accurate pricing is the foundation of an effective and efficient American economy, allowing consumers to make smart choices and to reward the providers of better goods and services"; and
WHEREAS, on January 18, 2017, the United States Department of Transportation, in a Supplemental Notice of Proposed Rulemaking, proposed that air carriers and ticket agents "should be required to clearly disclose, at all points of sale, customer-specific fee information wherever fare and schedule information is provided," in which baggage fee information is to be disclosed at the first point in a search process; and
WHEREAS, the National Economic Council's report provided that, the "hidden fees," including charges to check luggage and change flights, generated $22.5 billion for the world's airline industry in 2015; and
WHEREAS, the report also provided that in 2015, " resort fees" accounted for $2.04 billion in the hotel industry and "service" fees amounted to more than $1.6 billion last year, which has led to the FTC and FCC expressing ...

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