The Federal Trade Commission passed a rule Tuesday banning hidden “junk fees” on live events, hotels and vacation rentals. The agency said the new rules prohibit “bait pricing” and other practices in the live event ticketing and short-term lodging industries that hide the total amount and fill in junk fees. ” pointed out that the practice was damaging. consumer.
The FTC says consumers will no longer be surprised by “resort,” “convenience” and “service” fees that drive up advertised prices when looking for lodging or tickets to a show or sports game. . As a result, consumers will be able to more easily compare prices when purchasing rentals and tickets, the agency said.
It's worth noting that the new rules do not prohibit companies from charging these types of fees, but instead require them to advertise their fees and total costs up front.
FTC Chair Lina M. Khan said, “People have a right to know upfront what they're being asked to pay, only to be hit later with unavoidable and mysterious fees that they haven't budgeted for.'' There's no need to worry about it happening.” In a press release. “I urge enforcement officials to continue to crack down on these illegal fees, and I urge state and federal policymakers to enact legislation to ban unfair and deceptive junk fees throughout the economy. We encourage them to build on this success.”
The new rules also require companies to make the total amount displayed more prominent than other price information. Additionally, businesses that do not disclose shipping and taxes in their advertised prices must clearly disclose those charges before consumers enter their payment information.
The agency estimates that the new rules could save consumers up to 53 million hours a year of wasted time researching the total cost of accommodations and live event tickets.
With President-elect Donald Trump set to take office next month, his administration may seek to rescind the rule.
Today's announcement comes a week after President Trump nominated current Republican FTC Commissioner Andrew Ferguson to replace Khan.