FTC Bans Hidden 'Junk Fees' for Live Events and Lodging with Bipartisan Support, Effective in 120 Days

Dec 17, 2024, 07:32 PM

The Federal Trade Commission (FTC) has finalized a new rule aimed at eliminating hidden 'junk fees' for consumers purchasing live event tickets, hotel stays, and vacation rentals. The rule mandates that businesses must disclose the total price, including all mandatory fees, upfront, rather than adding them at the end of the transaction. This initiative is part of a broader effort by the Biden administration to enhance price transparency and reduce costs for American consumers. The rule, which received bipartisan support among FTC commissioners in a 4-1 vote, is set to take effect in 120 days. FTC Chair Lina Khan emphasized that the rule will save consumers 53 million hours annually, equivalent to about $11 billion in savings over a decade, previously spent searching for the true cost of their purchases. The move has been welcomed by some industry players, such as Ticketmaster, which has supported all-in pricing, while others, including the American Hotel and Lodging Association, have yet to comment publicly.