FTC Rule to Enhance Pricing Transparency Takes Effect

The Federal Trade Commission (FTC) has issued a new rule to ban hidden 'junk fees' in the pricing of live-event tickets and short-term lodging, aiming to enhance transparency in costs for consumers. This rule requires businesses to include all mandatory fees in the initially advertised price, eliminating unexpected charges at checkout. The initiative is expected to save consumers 53 million hours annually, equivalent to $11 billion over ten years, by simplifying price comparisons and decision-making. The rule, which passed with bipartisan support, will take effect 120 days after publication in the Federal Register. While the rule does not eliminate the fees themselves, it mandates clear disclosure of the total price upfront. The move is part of a broader effort by the Biden administration to address deceptive pricing practices across various sectors.