FTC Requires Upfront Fee Disclosure for Hotels

The Federal Trade Commission (FTC) has announced a new rule requiring hotels, vacation rental platforms, and live event promoters to disclose all fees upfront when advertising prices. This decision aims to combat 'junk fees'—unexpected charges that often surprise consumers after they have made a booking. FTC Chair Lina Khan emphasized the importance of transparency for consumers, stating that the rule will save Americans approximately 53 million hours annually in search time and could lead to over $11 billion in savings over the next decade. The rule, which has bipartisan support, is set to take effect in 120 days and mandates that all mandatory fees be included in the initial price display. Ticketmaster has expressed support for this rule, highlighting its commitment to clear pricing practices. The FTC received substantial public input during the rule-making process, with over 12,000 comments submitted.