FTC Bans ‘Junk Fees’ for Concert Tickets, Hotels | Global News Avenue

The next time you book a hotel room or purchase concert tickets, the price may appear higher because of the new inclusion of several fees that were previously tacked on at checkout.

this Federal Trade Commission (FTC) A new rule banning hidden or unclear fees for short-term stays and tickets to live events was finalized on Tuesday. In both industries, procurement often comes with a range of additional fees and charges in addition to the basic list price.

Under the new rules, fees such as “resort fees” and “convenience fees” must be disclosed as part of the advertised price, rather than just at check-out. The FTC says its goal is to make comparison shopping easier.

“People should know up front what they are being asked to pay and not have to worry that they will later be hit with mysterious charges they didn’t pay. budget “This is inevitable,” FTC Chairwoman Lina Khan said in a prepared statement.

New rules narrow scope to only live events, hotels

The final rule is narrower than the version proposed last year, which could impact various businessesnot just hotels and live events.

The new rule will be implemented four months after it is published in the Federal Register, meaning it will go into effect under President Donald Trump’s new administration. Notably, the rule change was supported by Melissa Holyoak, whose name has been listed as a possible candidate. Federal Trade Commission Chair under Trump.

reduce”garbage fee“Has been a major focus of federal consumer regulators under President Joe Biden. The Consumer Financial Protection Bureau (CFPB) has developed rules to limit credit card late fees and fees. bank overdraft feesand the Ministry of Transport has Restrictive fees charged by airlines.

The CFPB’s credit card rules have been put on hold in court after fierce opposition from the banking industry, which also sued the CFPB. Stop overdraft fee rules.

Michael Negron, a member of the White House National Economic Council, told Investopedia that despite the legal challenges, the campaign still had an impact on the way companies do business. Many banks voluntarily lowered overdraft fees after the CFPB reviewed the issue, and last year, Ticketmaster said it would include the fee in the advertised price of some tickets.

“You’re going to see a move toward more transparency, getting rid of bait and switch and shifting pricing,” he said.

Update, December 17, 2024: This article has been updated to include comments from Michael Negron.