Many businesses quietly charging 'Covid fees' to make up for lost profits; attorneys general say that may be illegal - Entrepreneur Generations

"Nearly a year into the pandemic’s gutting of the economy, businesses across the country are increasingly charging coronavirus-related fees, ranging from a $5 disinfection charge in a hair salon to $1,200 for extra food and cleaning in a senior living center, which are often undisclosed until the customer gets a bill," Hannah Denham reports for The Washington Post. "Adding surcharges as a temporary Band-Aid to help cover store closures, employee salaries and health benefits, personal protective equipment for staff, and increased sanitation, utilities and reopening costs is one approach some small businesses and franchises have taken to offset financial losses and stay open during the pandemic."

Though it's unclear how widespread the practice is, it seems to be most common among health-care providers and residential facilities. Many restaurants appear to be doing it too. "Small businesses and franchises have had to get creative out of desperation when gift card drives, individual tipping and fundraising by local chambers of commerce aren’t enough to pay the bills," Denham reports. Dental offices have some of the highest number of complaints about hidden fees.

Hidden fees are a legitimate concern for consumers, especially for economically vulnerable Americans or senior citizens without much income, but not every state protects consumers from them. While medical insurance law in some states requires health-care providers to offer refunds to patients who have been unfairly charged for personal protective equipment, other states allow for businesses to tack on extra fees, as long as they’re disclosed upfront," Denham reports. "Starting in August, a handful of state officials — in New York, Connecticut, Arizona, Michigan and Massachusetts — issued guidance warning residents of hidden fees and businesses and insurers of the consequences of violating consumer protection and insurance laws."

from The Rural Blog https://ift.tt/3p0BLRT Many businesses quietly charging 'Covid fees' to make up for lost profits; attorneys general say that may be illegal - Entrepreneur Generations

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