The Federal Trade Commission (FTC) has introduced a new regulation requiring ticketing agencies, hotels, and vacation rental platforms to disclose all costs upfront, including often-hidden junk fees. This bipartisan rule, known as the Junk Fees Rule, aims to curb deceptive pricing tactics and will take effect around April.
Under the new rule, while junk fees won’t be eliminated, their inclusion must be clearly stated at the start of a purchase, rather than added as surprise charges at the end. This applies to live event tickets, hotel bookings, and vacation rentals.
The regulation follows extensive public input: after the FTC proposed the rule in October 2023, it received over 12,000 initial comments and another 60,000 during the review process. Many respondents highlighted the negative impact of hidden fees on personal budgets and market competition.
“People deserve to know upfront what they’re being asked to pay—without worrying about unexpected fees later,” said FTC Chair Lina M. Khan. “This rule will end junk fees around live event tickets, hotels, and vacation rentals, saving Americans billions of dollars and millions of hours in wasted time. I encourage policymakers to build on this success with broader legislation to eliminate unfair junk fees across the economy.”
The FTC estimates that the new rule will save consumers up to 53 million hours annually that would otherwise be spent deciphering hidden costs. Additionally, the rule is expected to generate over $11 billion in savings for Americans over the next decade.
This decision, passed with a 4-1 vote, marks another step in the fight against unfair ticketing practices. Earlier this year, President Joe Biden announced that Live Nation and its Ticketmaster subsidiary would adopt similar measures, pledging to display full prices upfront.
