The Federal Trade Commission (FTC) has implemented new bipartisan rules targeting “junk fees” in the short-term lodging and live-event ticketing sectors. These rules, which came into effect recently, require full disclosure of total pricing and prohibit deceptive practices that mislead consumers with initially low prices that are later inflated with unexpected fees.
While the rules do not eliminate resort fees or handling charges, they ensure that consumers are informed of all mandatory costs upfront. This is particularly relevant in areas like Southern Nevada, where resorts often add significant resort fees for amenities such as WiFi and fitness centers, which guests might assume are included in the room rate.
The FTC’s efforts are part of a broader initiative to address unfair and deceptive fees across various industries, ranging from personal finance to housing. The rulemaking process involved extensive public input, with over 60,000 comments submitted by individuals sharing their experiences with hidden fees in various sectors.
Under the new regulations, businesses must accurately disclose the total price of tickets for live events and short-term accommodations, detailing the nature and purpose of any fees and their refundability. Non-compliance can result in consumer compensation and civil penalties.
Certain charges, such as government-imposed fees, shipping costs, and charges for optional services added by the consumer, are exempt from mandatory disclosure. Additionally, the rules apply to short-term rental platforms like Airbnb and VRBO, ensuring transparency for consumers in these transactions as well.