FTC Bans 'Junk Fees' for Tickets and Lodging, Saving Consumers Time and Money

Dec 17, 2024, 03:09 PM

The Federal Trade Commission (FTC) has finalized a rule banning surprise 'junk fees' for live event tickets, hotels, and vacation rentals, targeting bait-and-switch pricing tactics. This rule requires businesses to disclose total prices upfront, including any mandatory fees such as 'resort,' 'convenience,' or 'service' fees, to prevent consumers from being surprised by additional costs at checkout. The FTC estimates that this rule will save consumers up to 53 million hours annually and more than $11 billion over the next decade. The rule, set to take effect around April 2025, aims to enhance price transparency and facilitate comparison shopping, thereby benefiting consumers and leveling the competitive playing field. FTC Chair Lina M. Khan emphasized the importance of upfront pricing, stating that consumers deserve to know the full cost without worrying about unexpected fees.