FTC Bans ‘Junk Fees’ for Concert Tickets, Hotels

The next time you book a hotel room or buy a concert ticket, the prices might seem higher due to the new inclusion of several fees that were previously tacked on at checkout.

The Federal Trade Commission (FTC) finalized a new rule Tuesday that would ban hidden or unclear fees for short-term lodging and live event tickets. These are two industries in which purchases usually come with a litany of extra fees and charges on top of the basic sticker price.

Under the new rule, things like “resort fees” and “convenience fees” will have to be disclosed as part of the advertised price, rather than being revealed only when you’re checking out. The goal is to make comparison shopping easier, the FTC said.

“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,” FTC Chair Lina Khan said in a prepared statement.

New Rule Narrowed To Apply Just to Live Events, Hotels

The final rule is narrower than the version proposed last year, which would have affected every kind of business, not just hotels and live events.

The new rule is set to be implemented four months after being published in the Federal Register, meaning it will go into effect under the new administration of President Donald Trump. Notably, the rule change received support from Melissa Holyoak, whose name has been floated as a possible FTC chair under Trump.

Curtailing “junk fees” has been a major focus for federal consumer watchdog agencies under the administration of President Joe Biden. The Consumer Financial Protection Bureau (CFPB) has created rules limiting credit card late fees and bank overdraft fees, while the Department of Transportation has restricted fees charged by airlines.

The CFPB credit card rule has been tied up in court after fierce opposition from the banking industry, which has also sued to stop the overdraft fee rule.

Despite legal challenges, the campaign has still had an effect on the way companies do business, Michael Negron, a member of the White House National Economic Council, told Investopedia in an interview. Many banks voluntarily lowered their overdraft fees after the CFPB scrutinized the issue, and last year, Ticketmaster said it would include fees on the advertised prices of some tickets.

“You’re seeing a movement toward more transparency, a move away from bait and switch approaches to pricing,” he said.

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