New FTC Rules Will End Those Sneaky Fees For Hotel Rooms And Concert Tickets
David Imel / Android Authority
TL;DR
- The FTC has issued rules that crack down on “bait and switch” pricing practices in the lodging and live event industries.
- These companies will now have to display the full price of hotel rooms, concert tickets, and sporting events instead of hiding any extra charges.
- The ruling doesn’t ban these companies from imposing these extra fees, however.
Don’t you hate it when you see a reasonable price for a hotel room, only to find that the actual price is higher than expected when you try to book it? It’s not uncommon for certain industries to tack on hidden fees like service charges or amenity fees to a bill before checkout. The Federal Trade Commission (FTC) will now require these companies to show these extra charges upfront.
The Washington Post reports that the FTC has now issued rules that crack down on hidden fees in the lodging and live event industries. Although the ruling still allows for these fees to exist, companies in these sectors will now be forced to clearly display them so customers aren’t misled about the actual price of products and services. According to FTC Chair Lina Khan, these regulations aim to prevent the “bait and switch” pricing practices that are prevalent in these areas.
Of course, the lodging and live event industries aren’t the only businesses that use these tactics. Consumers have also complained about what’s commonly referred to as “junk fees” in other sectors such as transportation and tech. However, the outlet points out that the FTC initially had a broader scope in mind, but Khan seemingly narrowed it to secure bipartisan support among the five-member commission, which ended up voting 4-1. The lone dissenter ended up being Andrew Ferguson, who is expected to be picked by President-elect Donald Trump to lead the agency next year.
Khan provided the following statement in regard to the new rule:
People deserve to know upfront 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. The FTC’s rule will put an end to junk fees around live event tickets, hotels, and vacation rentals, saving Americans billions of dollars and millions of hoursin wasted time.”
Khan is reportedly urging the FTC to find ways to expand its oversight so that it can cover pricing practices in other industries not touched by this ruling. However, it’s unclear how Ferguson will enforce the ruling once he becomes FTC Chair.
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