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FTC Bans 'Junk Fees' on Tickets and Lodging, Mandates Full Price Disclosure

Dec 17, 2024, 01:50 PM

The Federal Trade Commission (FTC) has finalized a rule aimed at eliminating surprise 'junk fees' for consumers purchasing live event tickets, hotel stays, and vacation rentals. The new regulation mandates that businesses must disclose the full price upfront, including all mandatory fees, to prevent the addition of extra charges like 'convenience fees' or 'resort fees' at the end of the checkout process. FTC Chair Lina Khan stated that the rule, set to take effect in April of next year, could save consumers approximately 53 million hours annually and up to $11 billion over the next decade by eliminating the time spent searching for the total cost. The rule received bipartisan support at the FTC, with a 4-1 vote in favor, despite opposition from the U.S. Chamber of Commerce, which criticized it as an attempt to micromanage business pricing structures. The rule is part of a broader effort by the Biden administration to combat hidden fees and lower costs for American households.