ATLANTA — A new junk fee rule from the Federal Trade Commission will require more transparency in the price of live event tickets and hotels.
“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 FTC Chair Lina M. Khan. “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.”
The final rule requires that the “business must display the total price more prominently than any other pricing information.”
“I actually just went to a concert last weekend and the service fees and extra fees attached along with it was horrendous,” Shantria Harris told Channel 2 consumer investigator Justin Gray.
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Harris said it was only when she went to check out for her tickets for the Fantasia concert that she noticed all the fees and an unexpected price.
“It was almost the price of an additional ticket,” Harris said.
That’s what this new final rule from the FTC is intended to ban going forward.
It covers live event ticketing like concerts and sporting events and short-term lodgings like Airbnb’s and hotels.
“Certainly, anyone who’s ever stayed in a hotel knows that a convenience fee is never convenient. And what we’re trying to do with this is make sure that consumers know upfront exactly how much they will pay so that they can comparison shop,” said Douglas Farrar from the FTC.
The new rule does not limit what fees can be added to your ticket or overnight stay, but businesses cannot misrepresent any fee or charge.
During public comment, one consumer wrote to the FTC, “It’s one thing to be on guard when walking down a dark alley but being on guard every time you want to take a vacation, go to a concert, fly home to see a sick loved one—that’s just not fair.”
The final rule will become effective 120 days after its publication in the Federal Register.
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