The Federal Trade Commission (FTC) has finalized its Junk Fees Rule, aimed at eliminating deceptive pricing practices in the live-event ticketing and short-term lodging industries. The new rule bans bait-and-switch pricing tactics and requires businesses to disclose total prices upfront, including all mandatory fees. The FTC’s goal is to put an end to misleading charges like "resort," "service," or "convenience" fees, which often inflate advertised prices. First introduced in 2022 and shaped by extensive public feedback, the initiative is designed to make price comparisons easier, save consumers up to 53 million hours annually, and ensure fair competition. The rule will go into effect 120 days after its publication in the Federal Register.
The Junk Fees Rule requires businesses to prominently display the all-inclusive price, ensuring consumers understand total costs before making purchases. While targeting ticketing and lodging, the rule reinforces broader protections under longstanding laws that prohibit deceptive pricing in other industries. FTC Chair, Lina M. Khan emphasized the rule’s importance in safeguarding consumers and fostering honest competition. The bipartisan rule received a 4-1 approval from the Commission, reflecting strong support for combating unfair practices. The FTC estimates the rule will save consumers over $11 billion in the next decade by eliminating hidden fees and enhancing transparency.
