The FTC has announced a new Junk Fees Rule targeting hidden costs in live event tickets and short-term lodging. This regulation aims to protect consumers from unexpected fees and promote pricing transparency.

Key aspects of the FTC's Junk Fees Rule:

• Businesses must display the total price, including all mandatory fees, upfront
• Applies to live event tickets and short-term lodging (hotels, AirBnB)
• Prohibits misrepresentation of any fees or charges
• Takes effect 120 days after Federal Register publication

Expected benefits:

• Saves consumers up to 53 million hours annually in price searching
• Eliminates hidden "resort fees," "convenience fees," and "service fees"
• Protects consumers from price inflation at checkout
• Promotes fair competition among businesses

The rule passed with a 4-1 FTC vote, with Commissioner Andrew Ferguson dissenting. While major airlines have opposed similar regulations through lobbying efforts, Southwest Airlines has expressed support for the Biden administration's stance on fee transparency.

FTC Chair Lina Khan emphasizes that consumers deserve upfront pricing without worrying about hidden charges. The commission encourages state and federal policymakers to expand these protections across other sectors of the economy.

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