What does the term 'hidden fees' refer to?

The term 'hidden fees' refers to costs that are not immediately apparent or clearly communicated to the consumer. These fees can often catch individuals off guard because they are typically not disclosed until after a transaction is completed or in the fine print of a contract. Consumers expect transparency in pricing, and when fees are hidden, it can lead to dissatisfaction and mistrust in financial dealings.

In contrast to hidden fees, obvious service charges are known and visible to the consumer at the time of the transaction, and fees that are disclosed upfront are clearly stated before any commitment is made. Fees that are waived are those that could have been charged but are omitted, usually as part of a promotional strategy or customer loyalty program. Thus, the correct understanding is that hidden fees are those costs that consumers might encounter without prior awareness, leading to unexpected expenses.