Hidden fees banned from hotel and concert apps & websites

The U.S. Federal Trade Commission (FTC) today announced a new rule that will ban app Hotel and event industry websites use hidden fees for bait and switch pricing.

The agency found it was common for companies to display misleading prices, which were then inflated by hidden costs such as reservation and resort fees that were only revealed during the checkout process…

Companies are not prohibited from charging junk fees, but they must include it in the headline price shown to consumers from the start, so the price shown up front is the total price you will pay.

The FTC first began consulting on this back in 2022 and received more than 12,000 comments about hidden fees and misleading pricing. After the agency announced its plans, it received an additional 60,000 comments.

The Federal Trade Commission stated Revealing true prices will make shopping easier and prevent consumers from wasting time.

The waste fee rule will ensure that pricing information is provided in a timely, transparent and truthful manner to consumers of live event tickets and short-term accommodation, two industries where the Commission has specifically studied pricing practices.

Consumers looking for a hotel, vacation rental, or seats at a show or sporting event will no longer be surprised by a bunch of “resort,” “convenience,” or “service” fees that inflate the advertised price. By requiring upfront disclosure of the total price, including fees, the rule will make comparison shopping easier, saving consumers money and leveling the playing field […]

The FTC estimates that the garbage fee rule will save consumers up to 53 million hours each year from wasting time searching for the total price of live event tickets and short-term lodging.

In addition to apps and websites, the rule also applies to advertising, so companies are not allowed to publish a price unless that price includes all the fees a customer would have to pay to actually book.

While the rule specifically targets the hospitality and event industries, the FTC said it is already illegal for businesses generally to deceive customers about the true prices of the goods and services they offer, so it will continue to use its enforcement powers in other areas. .

The law will take effect 120 days after it is promulgated.

photography: Yvette DeWitt exist Not splashed