FTC Bans ‘Junk Charges’ for Live performance Tickets, Accommodations

The following time you ebook a lodge room or purchase a live performance ticket, the costs might sound larger because of the new inclusion of a number of charges that have been beforehand tacked on at checkout.

The Federal Trade Commission (FTC) finalized a brand new rule Tuesday that may ban hidden or unclear charges for short-term lodging and dwell occasion tickets. These are two industries wherein purchases often include a litany of additional charges and costs on high of the fundamental sticker value.

Underneath the brand new rule, issues like «resort charges» and «comfort charges» must be disclosed as a part of the marketed value, relatively than being revealed solely whenever you’re testing. The objective is to make comparability buying simpler, the FTC mentioned.

“Folks should know up-front what they’re being requested to pay—with out worrying that they’ll later be saddled with mysterious charges that they haven’t budgeted for and might’t keep away from,” FTC Chair Lina Khan mentioned in a ready assertion.

New Rule Narrowed To Apply Simply to Reside Occasions, Accommodations

The ultimate rule is narrower than the model proposed final 12 months, which might have affected every kind of business, not simply resorts and dwell occasions.

The brand new rule is ready to be applied 4 months after being printed within the Federal Register, that means it’s going to go into impact beneath the brand new administration of President Donald Trump. Notably, the rule change obtained assist from Melissa Holyoak, whose title has been floated as a attainable FTC chair beneath Trump.

Curbing «junk fees» has been a serious focus for federal client watchdog businesses beneath the administration of President Joe Biden. The Shopper Monetary Safety Bureau (CFPB) has created guidelines limiting bank card late charges and bank overdraft fees, whereas the Division of Transportation has restricted fees charged by airlines.

The CFPB bank card rule has been tied up in court docket after fierce opposition from the banking trade, which has additionally sued to stop the overdraft fee rule.

Regardless of authorized challenges, the marketing campaign has nonetheless had an impact on the way in which firms do enterprise, Michael Negron, a member of the White Home Nationwide Financial Council, informed Investopedia in an interview. Many banks voluntarily lowered their overdraft charges after the CFPB scrutinized the problem, and final 12 months, Ticketmaster mentioned it could embrace charges on the marketed costs of some tickets.

«You are seeing a motion towards extra transparency, a transfer away from bait and change approaches to pricing,» he mentioned.

Replace, Dec. 17, 2024: This text has been up to date to incorporate feedback from Michael Negron.