A new Federal Trade Commission rule aims to protect consumers from surprise fees by requiring businesses to disclose total prices upfront for live event tickets, hotels, and vacation rentals.
New federal rule bans surprise 'junk fees' for live event tickets, hotels and vacation rentals. The rule would require businesses to disclose total prices upfront, rather than tacking on extra costs like 'convenience fees' or 'resort fees' when consumers check out online. 'Whatever price you see is the price that you are paying at the end, no more mystery surprise fees at the very end of the process, which really cheat consumers and also punish honest businesses,' FTC Chair Lina Khan said.
The FTC said the final rule, which takes effect around April of next year, could save consumers 53 million hours in wasted time searching for the total price of live event tickets or short-term lodging -- equal to about $11 billion in savings over a decade. The rule would not stop businesses from charging fees. But they would be required to list prices clearly from the onset and to display the total cost more prominently on a website than any other price. 'This should really provide the American people with just some more clarity and confidence so they don't feel like they're getting cheated or having to be bait and switched by all of these deceptive pricing tactics,' Khan said. 'This is really about saving people money and saving people time.' The change is part of a broader push from the administration of President Joe Biden to lower costs as households have been plagued by stubborn inflation. Last week the Consumer Financial Protection Bureau announced a final rule to curb bank overdraft fees. In a statement to ABC News, Biden said: 'Today's announcement builds on work across my Administration to ban junk fees and lower costs -- saving many families hundreds of dollars each year.
CONSUMERPROTECTION FEES FTC INFLATION LIVEEVENTS HOTEL VACATIONRENTALS
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
FTC Bans Surprise 'Junk Fees' for Live Event Tickets, Hotels, and Vacation RentalsThe Federal Trade Commission (FTC) has implemented a new rule that prohibits surprise 'junk fees' for live event tickets, hotels, and vacation rentals. This rule mandates businesses to disclose total prices upfront, eliminating hidden charges like 'convenience fees' or 'resort fees' revealed only at checkout. The FTC estimates this change could save consumers 53 million hours and $11 billion over a decade.
Read more »
Airline executives called to testify in Senate subcommittee hearing about ‘junk fees’Political News and Conservative Analysis About Congress, the President, and the Federal Government
Read more »
Senate panel slams US airlines for 'junk' fees, execs called to testifyExecutives at five major U.S. air carriers are being requested to testify in front of the Senate Permanent Subcommittee on Investigations (PSI) next week regarding 'junk' fees.
Read more »
Senate Report Raises Concerns Over Airlines' 'Junk Fees' Before Thanksgiving Travel SurgeA new Senate report has expressed concerns about airlines allegedly imposing 'junk fees' on consumers as millions of Americans prepare for Thanksgiving travel. The report, released by the Senate Homeland Security Permanent Subcommittee on Investigations, highlights the use of ancillary fees by airlines. Meanwhile, airports across the US are preparing for a record-breaking travel week, potentially the busiest ever, with winter weather warnings issued for 13 states.
Read more »
U.S. Senate Panel to Question Airline Executives on Junk FeesA U.S. senate panel is calling on executives from five major airlines to testify during a congressional hearing in December over their growing use of 'junk' fees to increase revenue. The hearing, titled 'The Sky’s the Limit – New Revelations About Airline Fees,' will focus on how these fees impact consumer costs.
Read more »
Airlines make billions charging 'junk fees,' congressional report saysFrom 2018 to 2023, five US airlines made more than $12 billion on seat selection fees alone
Read more »