The Federal Trade Commission is implementing a new rule requiring hotels, vacation rental platforms, and live event promoters to disclose all fees upfront when displaying prices. The rule aims to increase transparency and prevent consumers from being surprised by hidden charges.
The Federal Trade Commission ( FTC ) announced on Tuesday that it will soon require hotels, vacation rental platforms, and live event promoters to disclose all fees upfront when listing prices. The FTC stated that consumers frequently encounter advertised prices for hotel rooms, short-term rentals, and tickets to sporting events and concerts, only to be surprised later by hidden fees. FTC Chair Lina Khan emphasized consumers' right to know the total cost without unexpected charges.
The rule mandates lodging and ticketing businesses to clearly display the true cost, including all mandatory fees, when presenting any pricing. Businesses that omit taxes or shipping fees from advertised prices must also disclose them before customers provide payment information. The FTC estimates the rule will save U.S. consumers 53 million hours annually spent searching for the accurate price of lodging or events. The FTC initiated the rule-making process in 2022, seeking public feedback on whether a fee-disclosure rule would mitigate unfair and deceptive pricing practices. The agency received over 12,000 comments. The FTC's action aligns with the Department of Justice's lawsuit against Ticketmaster and its parent company, Live Nation Entertainment, earlier this year. The Department of Justice argues that the companies' monopoly on concert promotion and ticketing inflates prices for consumers and seeks to separate them
FTC Fee Disclosure Hotels Vacation Rentals Live Events Transparency Consumer Protection Pricing
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