The Federal Trade Commission’s new rule about disclosing “junk fees” on short-term lodging and live-event ticketing events has been in place for only three days, but it has already generated confusion.
Businesses were alerted in December of the changes that took effect Monday. The new Rule on Unfair or Deceptive Fees orders prominent full disclosure of total pricing and prohibits bait-and-switch tactics that draw consumers in only to tack on unexpected fees that jack up the total price.
To be clear, the new FTC rule does not eliminate so-called junk fees. It only requires companies to clearly show them in all advertising and on websites.
