The Federal Trade Commission (FTC) has finalized a rule that would ban surprise “junk fees” for hotel stays, live event tickets, and vacation rentals. The rule requires businesses to disclose total prices upfront, eliminating hidden costs such as convenience fees or resort fees.
According to the FTC, this change could save consumers 53 million hours of wasted time searching for total prices, equivalent to $11 billion in savings over a decade. The rule takes effect around April next year and would not stop businesses from charging fees but would require them to clearly list prices from the start and display the total cost more prominently on websites.
The move is part of President Joe Biden’s administration effort to lower costs and curb inflation, which has affected households. The U.S. Chamber of Commerce has opposed the rule, arguing it undermines businesses’ ability to offer consumers options at different price points.
FTC Chair Lina Khan has defended the rule, stating that it provides clarity and confidence for consumers, saving them money and time. She also noted that the FTC is on “firm legal grounds” despite potential court challenges.
Source: https://abcnews.go.com/Politics/new-federal-rule-bans-junk-fees-hotels-live/story?id=116858500