The Federal Trade Commission (FTC) has introduced a new Junk Fees Rule targeting hidden costs in live event tickets and lodging services. This rule aims to protect consumers from unexpected charges and promote pricing transparency.

Key Points of the New Rule:

• Businesses must clearly display the total price, including all mandatory fees upfront
• Applies to live event tickets, hotels, and vacation rentals
• Prohibits misrepresentation of any fees or charges
• The most prominent price must be the all-in total

Expected Benefits:

• Save consumers billions of dollars annually
• Reduce time spent searching for total prices by up to 53 million hours per year
• Create fair competition among businesses
• Eliminate hidden "resort fees," "convenience fees," and "service fees"

Implementation Details:

• Approved by FTC with a 4-1 vote
• Takes effect 120 days after Federal Register publication
• Does not apply to airline industry

Industry Response: Major airlines (except Southwest) have opposed similar regulations through Airlines for America, filing lawsuits against the Department of Transportation. However, the final ruling does not address airline fees.

FTC Chair Lina Khan emphasizes the rule's importance for consumer transparency and urges continued enforcement against unfair pricing practices. While the rule's future may depend on potential administrative changes, it represents a significant step toward eliminating deceptive pricing in the entertainment and hospitality sectors.

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