Federal rule bans junk fees hidden in hotel, event ticket prices

Junk fees hidden in the price of hotels and tickets for live events would be banned under a final rule approved by the Federal Trade Commission on Tuesday.

The rule requires certain companies to display the full price of a service or product upfront instead of notifying the buyer of the extra fees at the end of the checkout process. 

It will be enforced for short-term lodging services, such as hotels and resorts, and live-event ticket sellers, such as for concerts or sporting events. A statement from the FTC singled out “resort,” “convenience” and “service” fees that can make purchases unaffordable or force people look for cheaper alternatives.

“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 M. Khan said in a statement.

The new regulation reflects a broader crackdown by the Biden administration on “junk fees."  Other rules include limiting credit card late fees and capping overdraft fees.

Lobbying groups for airlines, banks and other industries are challenging the rules, according to The Washington Post. Banks sued the Consumer Financial Protection Bureau over enacting a cap on overdraft fees, according to ABC News.