WASHINGTON D.C., DC — The Federal Trade Commission (FTC) has voted to ban hidden "junk fees" on purchases of live-event tickets and short-term lodging.
For years, people buying tickets or renting a room would see the listed cost balloon at checkout as various "fees" were tacked on to the purchase. Many were listed as "processing fees" or "service fees."
Under the new FTC rule, passed on Dec. 17, businesses will have to "clearly and conspicuously disclose the true total price inclusive of all mandatory fees whenever they offer, display, or advertise any price of live-event tickets or short-term lodging."
That total price will also have to be more prominent than most other pricing information. That means the ad that shows up for a rental room at a hotel should show the total price and not the price before the hidden fees.
Finally, any business that exclude allowable fees must "clearly and conspicuously disclose the nature, purpose, identity, and amount of those fees before consumers consent to pay." That means if costs like shipping or taxes are left off of the listed price, a company needs to make it clear what you'll end up paying for them.
Industries other than live-event ticketing and short-term lodging have been banned from deceptive fees for years, according to the FTC.
The FTC received more than 72,000 comments from the public about these fees. The commission started working on this new rule in 2022.
“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 M. Khan said in a statement. “The FTC’s rule will put an end to junk fees around live event tickets, hotels, and vacation rentals, saving Americans billions of dollars and millions of hours in wasted time. I urge enforcers to continue cracking down on these unlawful fees and encourage state and federal policymakers to build on this success with legislation that bans unfair and deceptive junk fees across the economy.”
The rule should go into effect in April of 2025.
