The Federal Trade Commission (FTC) has issued a rule targeting deceptive pricing practices in the live-event ticketing and short-term lodging industries.
This new “Junk Fees Rule,” finalized on Tuesday, mandates full transparency in price listings, requiring businesses to disclose the total cost—including often-hidden charges like resort or service fees—upfront. By addressing these “bait-and-switch” pricing tactics, the FTC aims to protect consumers from unexpected charges that inflate costs and hinder informed decision-making.
Under the rule, businesses must display the total price more prominently than any other pricing information in their advertisements or listings. Charges such as shipping fees or taxes, if not included in the advertised total, must be disclosed clearly before consumers reach the payment stage. While businesses can still charge these fees, they can no longer obscure them until the final stages of purchase.
FTC Chair Lina M. Khan emphasized the importance of transparency, stating, “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.” She also urged policymakers to build on this foundation with broader legislation banning deceptive fees across the economy.
The agency estimates the new rule will save consumers up to 53 million hours annually that would otherwise be spent deciphering incomplete price information. Over a decade, it could save individuals more than $11 billion. The rule, proposed in 2023, will take effect 120 days after its publication in the Federal Register.
This announcement follows recent political developments, including President-elect Donald Trump’s nomination of Andrew Ferguson to replace Lina Khan as FTC Chair. It remains to be seen how the incoming administration might influence the rule’s enforcement or continuation.
