FTC Bans Hidden Junk Fees in Lodging and Event Tickets
The U.S. Federal Trade Commission (FTC) has taken a major step toward price transparency with a new bipartisan rule that prohibits deceptive pricing practices in two key industries:
- Short-term lodging (hotels, vacation rentals)
- Live event ticketing (concerts, sports games, shows)
Key Provisions of the New Rule
- Upfront Total Pricing: Businesses must display the full price including all mandatory fees before checkout
- Clear Fee Disclosure: All additional charges (resort fees, service fees, convenience fees) must be prominently disclosed
- Price Comparison Protection: Advertised prices must reflect the true total cost consumers will pay
- Payment Transparency: Any shipping or tax fees not included in the advertised price must be disclosed before payment
“Consumers deserve honest pricing from the first click,” stated FTC Chair Lina M. Khan in the official announcement. “This rule eliminates bait-and-switch tactics that force Americans to waste time and money on hidden charges.”
Impact and Benefits
The FTC estimates the regulation will:
- Save consumers 53 million hours annually currently spent hunting for true prices
- Enable easier price comparisons between competing services
- Reduce last-minute payment surprises at checkout
Important Notes
- Businesses can still charge fees, but must disclose them clearly upfront
- The rule focuses on mandatory fees, not optional add-ons
- Total price must be displayed more prominently than other pricing information
Political Context
The timing of this consumer protection measure comes as:
- President-elect Donald Trump prepares to take office
- FTC Commissioner Andrew Ferguson was recently nominated to replace Chair Khan
- Some speculate the incoming administration may revisit the rule
This landmark decision represents one of the most significant consumer protection measures in recent years, addressing long-standing complaints about deceptive pricing practices in the travel and entertainment industries.
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