The Federal Trade Commission’s bipartisan “junk fee” rules took effect Monday giving consumers new protections against fees in short-term lodging and the live-event ticketing.
While the new rules don’t prohibit hated resort fees or handling fees when buying sports or concert tickets, they order full disclosure of total pricing and prohibit bait-and-switch tactics that draw consumers in only to tack on unexpected fees that jack up the total price.
“This rulemaking is one piece of a broader commission effort to combat junk fees,” FTC Commissioner Lina Khan said when the rule was approved in December. “In the last three years, the commission has taken enforcement action against unfair and deceptive fees at a staggering pace —securing hundreds of millions of dollars in relief for Americans who were saddled with junk fees. The commission’s law enforcement actions have spanned a broad swath of the economy, touching on everyday expenses in areas like personal finances, phone services, healthcare, automobiles, housing and funeral services.”
