The Federal Trade Commission on Tuesday said it will soon require hotels, vacation rental platforms and live event promoters to up front when they list prices.
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 鈥渏unk fees,鈥� including resort fees, cleaning fees, processing fees and other extra charges.
鈥淧eople deserve to know up front what they鈥檙e being asked to pay without worrying that they鈥檒l later be saddled with mysterious fees that they haven鈥檛 budgeted for and can鈥檛 avoid,鈥� FTC Chair said in a statement.
The rule is scheduled to go into effect in 120 days.
said Tuesday it supports the new rule.
鈥淭icketmaster has long advocated for all-in pricing as a nationwide industry standard, and we鈥檙e pleased to see the FTC mandate the necessary changes to make ticket-buying more transparent for fans,鈥� the company said.
The Associated Press left a message seeking comment Tuesday with the American Hotel and Lodging Association.
Four of the FTC鈥檚 five commissioners voted to approve the rule. Commissioner , 鈥� who is President-elect Donald Trump鈥檚 choice to replace Khan, was the one dissenting vote.
The rule requires lodging and ticketing businesses to clearly and conspicuously disclose the true cost 鈥� including all mandatory fees 鈥� 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 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 also has targeted the fee practices of , banks and online payment platforms.
Dee-ann Durbin, The Associated Press
