The Federal Trade Commission (FTC) has introduced a pivotal new regulation aimed at combatting deceptive pricing practices that have long troubled consumers in the hotel and event ticketing industries.
This final rule requires businesses to present the total cost of services upfront, ensuring that all mandatory fees are included in the displayed price.
More importantly, this total price must be more prominent than any other pricing details.
End of a Multi-Year Investigation
Lina Khan, the outgoing FTC chair, emphasized that this rule marks the end of a thorough, multi-year investigation into hidden charges that often inflate costs without delivering real benefits to consumers.
This initiative forms part of the FTC’s broader commitment to tackle excessive fees that frustrate many shoppers.
The agency received over 60,000 public comments voicing concerns about surprise charges across various sectors.
However, the decision to focus specifically on hotels and live events, which was supported by Republican Commissioner Melissa Holyoak, has raised some eyebrows.
Incoming Chair Andrew Ferguson did not back the rule and expressed his dissent.
New Regulations Take Effect
The newly established regulations will take effect 120 days after they are published in the Federal Register.
They apply to all types of businesses—including corporations, partnerships, associations, and individuals—that sell or promote tickets for live events or hotel stays.
Notably, these rules also extend to business-to-business transactions.
Companies must now disclose mandatory fees upfront, though they can list certain charges like taxes, shipping, and optional service fees later in the process, as long as consumers are informed about them before completing their purchase.
FTC’s Compliance Support
To help businesses comply with these new guidelines, the FTC has created an informative infographic outlining the specific requirements.
This resource aims to clarify what businesses need to do to align with the new regulations, ultimately benefiting both companies and their customers.
Source: Natlawreview.com