Key Details:
- The Federal Trade Commission’s new Junk Fees Rule targets deceptive pricing in short-term lodging and live-event ticketing.
- The FTC estimates their new rule will save consumers up to 53 million hours annually and $11 billion over a decade by ensuring total price transparency, requiring businesses to disclose all mandatory fees upfront.
Anyone who’s ever tried to book short-term lodging or lock in tickets for a special live event knows about bait-and-switch pricing.
Well, turns out, that the Federal Trade Commission (FTC) has noticed, too. Their new rule bans junk fees on short-term lodging and live-event ticketing to improve price transparency for consumers.
The FTC’s aim is to bring an end to deceptive pricing practices that have plagued short-term lodging—including Airbnb, VRBO, and hotels—along with live-event ticketing for years. With billions of dollars and millions of hours at stake, this landmark rule changes the game for both consumers and businesses.
What the Junk Fees Rule Covers
The FTC’s Junk Fees Rule targets two major industries notorious for their deceptive pricing practices:
- Live-event ticketing (entertainment)
- Short-term lodging—including hotels and vacation rentals (hospitality)
Businesses in these sectors often advertise one price only to tack on additional charges like “resort,” “convenience,” or “service” fees at checkout. These bait-and-switch tactics leave consumers feeling blindsided and undermine competition.
The new rule requires businesses to disclose the true total price—including all mandatory fees—whenever prices are advertised, displayed, or offered. Even better, this comprehensive total price must be the most prominent figure in any ad or display, ensuring transparency and making comparison shopping much easier.
Beyond these two industries, the FTC also reminds businesses across the economy that longstanding laws already prohibit deceptive pricing practices. Through rigorous enforcement, the agency plans to crack down on bait-and-switch tactics wherever they occur.
The Consumer Benefits: Time, Money, and Transparency
For consumers, the Junk Fees Rule is more than a win—it’s a lifeline.
According to FTC estimates, the rule will save Americans up to 53 million hours annually, time that’s currently wasted hunting for hidden costs. Over the next decade, this time savings translates into over $11 billion.
By forcing businesses to advertise upfront costs, the rule eliminates nasty surprises at checkout.
It also levels the playing field for honest businesses that previously struggled to compete with companies using deceptive pricing tactics. Whether you’re booking a vacation rental or buying concert tickets, the goal is to make transparency the norm, not the exception.
The Road to the Final Rule
The journey to this groundbreaking rule began in 2022, when the FTC sought public input on whether a rule could address deceptive pricing tactics. What followed was overwhelming support from consumers, with more than 12,000 comments submitted during the initial phase.
After announcing the proposed rule in October 2023, the FTC invited another round of feedback, receiving over 60,000 additional comments.
Today’s final rule represents the culmination of these efforts. It balances consumer protection with business flexibility, ensuring that businesses can still itemize prices and fees—as long as they’re truthful and upfront about the total cost.
The rule will officially take effect 120 days after its publication in the Federal Register.
What Comes Next
While the rule directly addresses live-event ticketing and short-term lodging, its ripple effects are likely to extend across the economy. Now that the live-ticketing and short-term rental industries are under the microscope, other industries that rely on hidden fees may soon join them as the FTC continues its enforcement efforts.
As FTC Chair Lina M. Khan put it: “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.”
The Junk Fees Rule isn’t just about curbing bad business practices; it’s about empowering consumers with the information they need to make smarter decisions.
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. I urge enforcers to continue cracking down on these unlawful fees and encourage state and federal policymakers to build on this success with legislation that bans unfair and deceptive junk fees across the economy.
