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FTC Bans Hidden 'Junk Fees' in Ticketing and Lodging, Saving Consumers Time and Money

Dec 17, 2024, 02:42 PM

The Federal Trade Commission (FTC) has finalized a rule to ban hidden 'junk fees' in the live-event ticketing and short-term lodging industries. The rule, effective around April next year, mandates that businesses disclose the total price, including all mandatory fees, upfront when advertising tickets for live events or short-term lodging such as hotels and vacation rentals. This measure aims to eliminate 'bait-and-switch' pricing tactics and surprise fees like 'resort', 'convenience', or 'service' fees that inflate the advertised price. FTC Chair Lina Khan emphasized the importance of transparency in pricing to prevent consumers from being misled by hidden fees. The FTC estimates that this rule could save consumers up to 53 million hours annually in time spent searching for the total price, equating to about $11 billion in savings over a decade. The rule was approved by a 4-1 vote.