The Federal Trade Commission (FTC) announced a new rule requiring hotels, vacation rental platforms, and live event promoters to disclose all fees upfront when listing prices. The rule aims to combat 'junk fees' that surprise consumers after they've initially seen advertised prices. Businesses will need to clearly and conspicuously display the true cost, including mandatory fees, and disclose additional taxes or shipping fees before customers provide payment information.
The Federal Trade Commission on Tuesday said it will soon require hotels, vacation rental platforms and live event promoters to disclose any fees up front when they list prices.
“People deserve to know up front what they’re being asked to pay without worrying that they’ll later be saddled with mysterious fees that they haven’t budgeted for and can’t avoid,” FTC Chair Lina Khan said in a statement.The Associated Press left messages seeking comment Tuesday with the American Hotel and Lodging Association and Ticketmaster.
The rule requires lodging and ticketing businesses to clearly and conspicuously disclose the true cost – including all mandatory fees – when they display any pricing. Businesses that exclude taxes or shipping fees from advertised prices must also disclose them before customers enter any payment information.
The FTC launched the rule-making process in 2022, asking for public input on whether a fee-disclosure rule might help eliminate unfair and deceptive pricing. The agency said more than 12,000 people commented.
Consumer Protection FTC Junk Fees Pricing Transparency Live Events
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