FTC Bans Hidden 'Junk Fees', Mandates Upfront Pricing for Tickets, Hotels, and Rentals

Dec 17, 2024, 08:01 PM

On Tuesday, the U.S. Federal Trade Commission (FTC) finalized a new, bipartisan rule that bans hidden "junk fees" charged by hotels, live event ticket sellers, and vacation rental platforms. The FTC commissioners voted 4-1 to approve the rule. It requires businesses to disclose the total price upfront—including all mandatory fees—rather than adding surprise charges at the end of the checkout process, effectively banning "bait-and-switch" pricing tactics. The rule impacts live event tickets, hotels, and vacation rentals, ensuring consumers are aware of the full cost before making a purchase. FTC Chair Lina Khan stated that consumers deserve to know upfront what they are being asked to pay without worrying about hidden fees they cannot avoid. The FTC estimates the rule will save U.S. consumers 53 million hours per year of time spent searching for true prices. This measure is seen as a significant win for consumers and is part of the Biden administration's efforts to combat deceptive pricing tactics and promote competition.