The 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.
The Federal Trade Commission ( FTC ) finalized a rule that would ban 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.
FTC Chair Lina Khan said, '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.' 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. Khan said, '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. 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
FTC Junk Fees Surprise Fees Consumer Protection Pricing Transparency
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