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The FTC prohibits unstated trash fees on tickets and short-term hotel bookings

Леонидас

Administrator
Staff member
Mar 26, 2022
11,357
316
83
California

View attachment 34556

There is still the possibility of those additional expenses, but they ought to be displayed far before the checkout page.​


I am unable to recall a recent case in which the final sum that I owed did not cause my eyes to bulge out in shock. This is true regardless of whether the amount was for a concert ticket or a hotel stay. The Federal Trade Commission (FTC) has recently instituted a new rule that is intended to restrict the use of bait-and-switch pricing strategies. With the announcement of the Junk Fees Rule, the Federal Trade Commission (FTC) mandates that businesses who provide live-event ticketing and short-term accommodation must be clear about the entire amount that is owing. Additional businesses will continue to be scrutinized on an individual basis for whether or not they engage in deceptive pricing.

All of those additional "resort" and "service" costs that are added on at checkout and frequently give the impression of being arbitrary should be eliminated by the new rule, which was initially suggested in 2023. Technically speaking, businesses are still able to incorporate them; however, they must be accounted for in the original price that is displayed. Because of the mandatory disclosure, the first price that you see on displays, advertisements, and other similar materials have to be the same as the complete amount that you pay additionally.

Additionally, the Junk Fees Rule mandates that businesses demonstrate the final amount in a manner that is "more prominently" shown than any other information. Consequently, it is not possible for it to state in a large font that it would cost one thing, and then in a very small print, add that there are a lot of fees on top of that. "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," said Lina M. Khan, Chair of the Federal Trade Commission. I urge those who police the law to continue their efforts to eliminate these illegal fees, and I encourage lawmakers at the state and federal levels to capitalize on this accomplishment by enacting legislation that prohibits trash fees that are both unfair and deceptive across the economy.

The Federal Trade Commission (FTC) asserts that the Junk Fee Rule will save individuals an estimated 53 million hours annually and more than eleven billion dollars over the course of the next ten years. After the rule has been published in the Federal Registrar, it will take effect one hundred and twenty days later.