(The approval of the final rule grants the FTC the authority to levy financial penalties against short-term rental and live-event ticketing companies that fail to provide consumers with complete pricing information upfront. Joe Raedle/Getty Images.)
CNN - The Federal Trade Commission (FTC) has issued a final rule prohibiting ticketing and short-term rental companies from incorporating hidden fees into their total pricing, as announced on Tuesday.
This regulation aims to eliminate the surprise “convenience” or “service” fees that consumers often encounter during the checkout process for hotel reservations and concert tickets. The FTC emphasized that the new rule will mandate clear presentation of pricing information prior to consumers committing to payment.
“Consumers have the right to know the total cost upfront, without the concern of unexpected fees that disrupt their budgeting,” stated FTC Chair Lina Khan in the announcement. “This rule will eradicate junk fees associated with live event tickets, hotels, and vacation rentals, ultimately saving Americans billions of dollars and countless hours of frustration.”
The final regulation does not impose restrictions on the prices that sellers may set for their products or services. Rather, it mandates that businesses prominently display the total price, inclusive of all additional fees, in a manner that is more noticeable than other pricing details.
This regulation received bipartisan approval from the FTC. Andrew Ferguson, who has been nominated by President-elect Donald Trump to succeed Khan as chair of the FTC, was the only member to oppose it.
In his statement, Ferguson, currently serving as an FTC commissioner, indicated that his dissent was not based on the rule's substance but rather on his belief that the FTC under President Biden should refrain from implementing new regulations following Trump's electoral victory.