Consumers will be able to save up to $11 billion over the next decade.
The Biden administration’s campaign against junk fees has culminated this week. The Federal Trade Commission (FTC) announced on December 17 that hotels, vacation rentals, and event websites are now prohibited from concealing junk fees.
This measure aims to halt unfair practices that initially display a lower price when consumers shop online for a hotel or event, only to add a “convenience fee” or “resort fee” to the total at checkout. FTC Chair Lina M. Khan stated, “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.”
While there are no restrictions on what businesses can charge, the new rule mandates that the total price, including all fees, be displayed prominently to enhance transparency. The rule clarifies that businesses cannot misrepresent any charges or fees. “By requiring up-front disclosure of the total price including fees, the rule will make comparison shopping easier, resulting in savings for consumers and leveling the competitive playing field,” the FTC announcement stated.
Additionally, the final price must be more prominent than other pricing. Moreover, all additional charges, such as shipping or taxes, should be disclosed along with details of their nature and purpose before a consumer agrees to pay them.
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The announcement also revealed that this rule will save American consumers up to 53 million hours per year, or savings equivalent to more than $11 billion over the next decade.
Related: Hate Resort Fees? A New Bipartisan Bill Aims to Eliminate Them
In July 2023, President Joe Biden criticized the practices employed by airlines, hotel websites, and concert and event companies. According to the White House, Americans pay an average nightly resort fee of $50, and these charges are sometimes exorbitant. Every hotel and resort charges these fees differently, and there are no set guidelines. Charges can apply to items like a beach towel or a coffee machine in your room, and opting out is not an option.
Airlines also faced scrutiny when the U.S. Department of Transportation (DOT) addressed their practice of charging families extra for seating together. Many airlines have since promised to offer family seating free of charge. The DOT also introduced new rules to prevent airlines from changing itineraries or canceling flights at the consumer’s expense—now they must provide refunds instead of travel credits and cannot exploit passengers with arbitrary policies.
Related: Air Passenger Rights in the U.S. Just Got Way Better. Here’s What to Know
Another significant victory for flight passengers occurred this year when the DOT added new protections for passengers with disabilities. Effective from January 16, 2025, the rule requires airlines to promptly return passengers’ delayed wheelchairs or scooters, arrange loaners, and ensure prompt repairs, among other guidelines. This followed numerous complaints about how airlines have managed concerns of passengers with disabilities.
Related: DOT Issues ‘Biggest Expansion of Rights’ in a Generation for Air Passengers With Disabilities
