The Federal Trade Commission unveiled a sweeping rule on Tuesday to crack down on hidden fees in ticket sales and hotel bookings, marking a major push by the agency to combat what it calls “junk fees” that cost consumers billions of dollars annually.
The bipartisan measure requires businesses to display the total price, including all mandatory fees, upfront when advertising tickets for live events or short-term lodging. The rule aims to end the practice of surprising customers with additional charges like “resort,” “convenience,” or “service” fees late in the booking process.
“People deserve to know up-front what they’re being asked to pay,” said FTC Chair Lina Khan, who estimates the rule could save consumers up to 53 million hours per year in comparison shopping time, equivalent to $11 billion over a decade.
The rule, approved by a 4-1 commission vote, does not ban any specific fees but requires clear disclosure before consumers enter payment information. It will take effect 120 days after publication in the Federal Register. The measure follows a lengthy public comment period that drew over 72,000 responses and represents one of the FTC’s most significant consumer protection actions in recent years.
