The Federal Trade Commission (FTC) has announced a final rule banning hotels and ticketing companies from including hidden “junk fees” in their total price, starting 120 days after the announcement.
According to the FTC, its new rule ensures that pricing information is presented transparently before consumers agree to pay. This means that consumers will no longer be hit with surprise fees for services like hotel bookings or concert tickets at checkout.
FTC Chair Lina Khan stated, “People deserve to know what they’re being asked to pay upfront, without worrying about mysterious fees.” The rule aims to save Americans billions of dollars and millions of hours in wasted time.
The final rule does not limit what businesses can charge for products or services but requires them to display the total price, including all additional fees, more prominently. The new regulation will also give the FTC the power to impose financial penalties on companies that don’t comply.
Ticketmaster’s parent company, Live Nation, commended the FTC’s new rule, saying it would help fans see the total price of a ticket upfront at all venues and festivals. This is part of a broader effort by the FTC under President Biden’s administration to combat junk fees.
The regulation was passed with bipartisan support among FTC commissioners. However, its fate remains uncertain if similar rules have been challenged in court by business trade associations in the past.
Source: https://edition.cnn.com/2024/12/17/business/ftc-junk-fee-ban/index.html