Federal Rule Bans Surprise 'Junk Fees' for Event Tickets and Hotels

In a significant move to protect consumers, the Federal Trade Commission (FTC) has finalized a new rule banning surprise "junk fees" on live event tickets, hotel bookings, and vacation rentals. The rule, announced on December 17, 2024, aims to eliminate deceptive pricing practices and ensure transparency in the cost of services. 

Under the new regulation, businesses must disclose the total price of tickets and short-term lodging upfront, including all mandatory fees such as "resort fees," "convenience fees," or "service charges." This means consumers will no longer face unexpected costs at checkout, allowing for easier comparison shopping and more informed purchasing decisions. The FTC emphasized that the total price must be displayed more prominently than any other pricing information. FTC Chair Lina Khan highlighted the importance of the rule, stating, “People deserve to know upfront 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.”

The agency estimates that this change will save Americans approximately $11 billion over the next decade and reduce 53 million hours of wasted time spent searching for accurate pricing. The rule was developed following extensive public feedback, with over 60,000 comments submitted during its drafting process. 

While businesses can still charge additional fees, these must be transparently disclosed at the outset of any transaction. The decision has been met with praise from consumer advocacy groups but faced criticism from some business organizations, such as the U.S. Chamber of Commerce, which argued that it interferes with pricing strategies. Despite this pushback, the FTC remains confident that the rule will withstand legal challenges. 

Set to take effect in spring 2025, this rule marks a major step toward fairer pricing practices in industries often criticized for hidden fees. Consumers can now look forward to greater clarity when booking hotels or purchasing tickets for concerts and sporting events.