The US Federal Trade Commission (FTC) has passed a new rule requiring ticket sellers, hotels, and vacation rental sites to disclose total prices, including fees upfront. This move aims to curb “junk fees” that drive up consumer costs without providing visible benefits.
According to President Joe Biden, these hidden fees can be misleading and lead to consumers paying more than they need to. The new rule will require service fees, resort fees, and other charges commonly added to bookings to be included in advertised prices.
The FTC estimates this change could save US consumers 53 million hours per year by eliminating the need to research total costs before making purchases. While some businesses may challenge this rule, FTC Chair Lina Khan has urged policymakers to continue cracking down on unfair fees.
However, President-elect Donald Trump’s potential withdrawal of the rule and Republican lawmakers’ efforts to vacate it raise concerns about its long-term viability. Despite these challenges, this new policy aims to provide consumers with more accurate information when making travel bookings.
Source: https://www.cnbc.com/2024/12/17/ftc-bans-hidden-junk-fees-in-hotel-event-ticket-prices-.html