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The New FTC Ruling: A Fair Deal that Prohibits Hidden Hotel Fees and More.…
Revel in the relief of bidding adieu to hidden fees and embracing the security of price transparency.
There are few things more frustrating than picking out the perfect flight or hotel room to find out that the price is much higher than advertised, thanks to fees that aren’t disclosed until the end of the payment process.
The U.S. Federal Trade Commission (FTC) is tackling this common traveler complaint with its new Rule on unfair or Deceptive Fees.
For hotels and resorts, this means displaying any mandatory resort fees as part of the total price. Similarly, short-term vacation rentals must also do the same if a compulsory cleaning fee is required.
Only when travelers proceed to complete their booking will they be shown a line item detailing how much of the total price is allocated to cleaning or resort fees?
Beyond helping travelers, the new ruling also targets ticketing for live events sold through companies like Ticketmaster and StubHub, which are notorious for adding hefty service fees.
As of May 12, companies are now prohibited from using “junk fees” or “hidden fees” that raise the price under the guise of providing extras that travelers didn’t ask for, such as “premium” WiFi or services that are generally expected, like gym access.
“The Rule prohibits bait-and-switch pricing and other tactics used to hide total prices and mislead people about fees,” says a release posted by the FTC.
Now, when users go online to buy tickets through these online retailers, the full price must be displayed from the beginning.
This means that the total cost, including the ticket price and any applicable fees, will be shown upfront. Customers will only see a breakdown of the price — what’s the ticket cost vs the fees — when they go to complete the purchase.
While the ruling won’t eliminate most fees, it is designed to help consumers more easily evaluate the cost of services.
“When consumers can see the full price upfront—whether they’re booking a hotel, buying concert tickets or paying a service fee—they’re in a better position to make informed decisions and avoid being misled,” Cathy Mansfield from the Case Western Reserve Law School told CNBC in December 2024, when the rule was first announced.
According to Mansfield, who specializes in consumer and commercial law, this will stop businesses from charging more “without looking like [they’re] raising prices.”
If you ever find yourself in a situation where you’ve been charged undisclosed fees for accommodations or event tickets, remember you have the power to file a complaint on the FTC website.
Companies found to violate the new rule may face penalties exceeding $50,000. You can also voice your concerns by filing complaints with the Consumer Financial Protection Bureau at consumerfinance.gov/complaint.
Jessica is a freelance journalist on a quest to see and experience everything our gorgeous planet offers and share her experiences with her fellow travelers. Jessica has written for several world-class Travel Magazines.
