The FTC has adopted a rule forcing businesses to disclose the complete cost of tickets, hotels, and vacation rentals before consumers pay.
Key Facts:
• The rule was approved on Tuesday by a 4-1 vote.
• It prohibits businesses from hiding mandatory fees and requires that the most prominently displayed price reflect the true total.
• FTC Chair Lina Khan says it could save Americans billions of dollars.
• Andrew Ferguson was the lone dissent and will become FTC chair when President-elect Trump takes office.
• Commissioner Melissa Holyoak, another Republican appointee, voted in favor, citing consumer protection and market fairness.
The Rest of The Story:
For years, consumers have complained about unexpected costs that appear at the final stage of a purchase, whether buying concert tickets or booking a hotel room.
According to FTC Chair Lina Khan, the new regulation aims to end these “junk fees” and bring full transparency to the purchasing process.
President Biden also praised the effort, noting that such hidden costs squeeze people’s budgets.
Under the rule, companies must “clearly and conspicuously” disclose the total price upfront, including any mandatory fees.
While individual fees are not outright banned, businesses cannot use misleading marketing tactics.
If shipping or taxes are excluded from an advertised price, those must be disclosed well before customers submit payment information.
1. People deserve to know upfront what price they’re being asked to pay, without worrying they’ll later be hit with mystery fees they can’t avoid.
Today @FTC finalized a rule to ban these junk fees for short-term lodging and live-event ticketing.https://t.co/zwLEe3BUxL
— Lina Khan (@linakhanFTC) December 17, 2024
Commentary:
This move by the FTC is a win for consumers, as it ensures they can see what they will truly pay without last-minute sticker shock.
Many people rely on strict budgets, and unexpected costs can create real financial strain or limit their ability to plan ahead.
By requiring full disclosure, the FTC is promoting fair competition and helping people spend their money wisely.
Knowing the entire cost at the outset aligns with basic consumer rights.
As a result, it fosters greater trust between buyers and businesses, creating a more transparent marketplace for everyone.
The Bottom Line:
The FTC’s new rule demands that businesses present the full, mandatory cost upfront.
READ NEXT: Costco Refuses to Abandon Its Diversity Plan Despite Call from Think Tank
It curtails deceptive pricing and ensures consumers can make informed decisions without hidden fees.