FTC's New Junk Fees Rule

The article covers the Federal Trade Commission's new "Junk Fees" Rule announced in 2024. While initially planned to cover all industries, the final rule specifically targets hidden fees in two sectors: live event ticketing and short-term lodging.

TAX

1/6/20252 min read

official receipt on white surface
official receipt on white surface

What You Need to Know About the FTC's New Junk Fees Rule

Ever been frustrated by those surprise fees that pop up when you're buying concert tickets or booking a hotel? Well, the Federal Trade Commission (FTC) has finally done something about it. They've just rolled out their new "Junk Fees" Rule, and it's going to change how businesses show their prices.

Here's the interesting part - when the FTC first proposed this rule back in October 2023, they wanted it to cover pretty much everything. But they've narrowed it down to focus on two main areas where hidden fees have been driving everyone crazy: event tickets and short-term lodging.

So What's Actually Changing?

First off, businesses can't play hide-and-seek with their fees anymore. That ticket price you see first? It needs to include all the mandatory fees right up front. No more falling in love with a $100 concert ticket only to find out it's actually $150 after all the "processing fees" and "facility charges" get tacked on.

The same goes for hotels and vacation rentals. That $200-per-night beach house needs to show its true colors from the start.

What Fees Can Still Be Added Later?

Don't worry - not everything has to be bundled into that first price. Businesses can still add things like:

  • Government taxes (because, well, taxes)

  • Optional extras (like hotel parking or spa services)

  • Shipping costs

  • Any add-ons you choose during booking

What About Those Credit Card Fees?

Here's where it gets interesting. If a business only accepts credit cards, it must include those processing fees in the upfront price. But if it offers other payment options (like debit cards), it can keep those fees separate—as long as it is clear about them.

When Is This All Happening?

The rule kicks in 120 days after it's published in the Federal Register. In real terms, that means businesses need to get their ducks in a row for early 2025.

The Politics of It All

This rule has surprisingly strong support across party lines. The FTC voted 4-1 to approve it, with only one commissioner voting no - and even he said he liked the rule itself; he just wasn't happy about the timing.

What Does This Mean for You?

If you're a business owner in the ticketing or lodging industry, you'll need to examine how you display your prices and fees. The days of surprising customers with last-minute charges are coming to an end.

And if you're a consumer? Get ready for more transparent pricing when you're booking your next concert or vacation. No more math gymnastics trying to figure out the real price - what you see should be what you actually pay.