FTC issues long-awaited rules requiring companies to display the full price of hotels, concerts....

The US FTC has issued long-awaited rules requiring companies to display the full price of hotels, concert tickets, and more up front, rather than hiding them as so called “junk fees.” Quoting the Washington Post:

The new regulations seek to crack down on “bait and switch” pricing practices, according to FTC Chair Lina Khan, who said the agency has received a groundswell of complaints about service charges, amenity fees and a raft of other potentially obscure, last-minute additions to consumers’ bills.

The FTC’s rules still allow companies to impose fees, so long as they are clearly displayed. The agency focused its prohibition on just the lodging and live-event industries, not the fuller array of firms — from airlines to internet giants — that have similarly stoked public anger over fees.

While the FTC initially proposed broader regulations, Khan appeared to narrow the agency’s scope in a bid to secure bipartisan support among her five-member commission, which approved the proposal on a 4-1 vote. The lone opponent was Andrew Ferguson, a Republican, whom President-elect Donald Trump intends to nominate to lead the FTC next year.

ENDQUOTE

“People deserve to know up front 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,” Khan said in a statement. “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 hours in wasted time.”

Government regulators have been pushing for greater financial transparency, with the Transportation Department working to shed light on airline and baggage fee structures. Meanwhile, the Consumer Financial Protection Bureau has set its sights on reducing financial penalties that impact everyday Americans, particularly focusing on overdraft charges and credit card late fees.

These initiatives have faced significant pushback from powerful industry players, with trade groups representing major airlines and banking institutions launching legal challenges against the proposed regulations. Their aggressive lobbying efforts have created roadblocks, potentially delaying or even threatening the financial benefits intended for consumers. The regulatory landscape could face additional turbulence as Republican lawmakers prepare to take control of both the House and Senate in January, with early signals suggesting they may work to dismantle some of these consumer protection measures.