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The
FTC said consumers often see advertised prices for hotel rooms,
short-term rentals, and tickets to sporting events and concerts
only to be surprised later by so-called “junk fees,” including
resort fees, cleaning fees, processing fees and other extra
charges.
“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 Khan said in a statement.
The rule is scheduled to go into effect in 120 days.
Ticketmaster said Tuesday it supports the new rule.
“Ticketmaster has long advocated for all-in pricing as a
nationwide industry standard, and we’re pleased to see the FTC
mandate the necessary changes to make ticket-buying more
transparent for fans,” the company said.
The Associated Press left a message seeking comment Tuesday with
the American Hotel and Lodging Association.
Four of the FTC’s five commissioners voted to approve the rule.
Commissioner Andrew Ferguson, – who is President-elect Donald
Trump’s choice to replace Khan, was the one dissenting vote.
The rule requires lodging and ticketing businesses to clearly
and conspicuously disclose the true cost – including all
mandatory fees – when they display any pricing. Businesses that
exclude taxes or shipping fees from advertised prices must also
disclose them before customers enter any payment information.
The FTC estimates the rule will save U.S. consumers 53 million
hours per year of time spent searching for the true price of
lodging or events.
The FTC launched the rule-making process in 2022, asking for
public input on whether a fee-disclosure rule might help
eliminate unfair and deceptive pricing. The agency said more
than 12,000 people commented.
Junk fees and deceptive pricing are also one of the reasons the
Department of Justice sued Ticketmaster and its parent company,
Live Nation Entertainment, earlier this year. The government
asked a court to separate the companies, saying they have a
monopoly on concert promotion and ticketing that drives up price
for consumers.
The Biden administration also has targeted the fee practices of
U.S. airlines, banks and online payment platforms.
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