Resort fees finally declared war by new FTC rules

The FTC’s final Junk Fees Rule prohibits deceptive pricing and hidden fees in live event ticketing and short-term lodging

Dec 18, 2024

The Federal Trade Commission (FTC) has finalized a rule banning deceptive bait-and-switch pricing practices for hotels, short-term rentals like Airbnb, and event tickets. The rule targets hidden fees, such as resort or cleaning fees, that aren’t clearly disclosed in the initial price display.

Key takeaways

• FTC Chairwoman Lina M. Khan stated: « People deserve to know what they’re paying up front, without surprise fees they didn’t budget for or can’t avoid; »
• The rule requires total prices, including fees, to be disclosed up front, eliminating unexpected charges such as « resort, » « convenience, » or « service » fees. This change will make comparison shopping easier, save consumers money, and promote fair competition;
• While many hotel chains now display total costs, online travel agency sites often omit fees until checkout, creating misleading price comparisons.

Get the full story at the Federal Trade Commission (FTC)