A new Federal Trade Commission (FTC) rule banning deceptive “junk fees” officially took effect on May 12, 2025, marking a significant shift in how hotels and event ticket sellers are required to display prices to consumers.
The rule mandates that businesses disclose the total price, including all mandatory fees, at the outset of any offer or advertisement — a move aimed at ending pricing practices that confuse or mislead buyers.
The rule applies to short-term lodging providers (such as hotels and vacation rentals) and companies that sell tickets for live events.
“People deserve to know up-front what they’re being asked to pay — without worrying that they’ll later be saddled with mysterious fees that they haven’t budgeted for and can’t avoid,” said FTC Chair Lina M. Khan in an official statement. “By ensuring businesses disclose total prices up front, the FTC’s rule will help consumers make informed choices and create a level playing field for honest businesses.”
Key Provisions of the Rule
Under the new regulation, businesses must:
· Clearly display the total price, inclusive of all mandatory fees, wherever pricing is presented.
· Show this total price more prominently than any partial or base price.
· Provide clear information on any optional or additional fees before the consumer agrees to pay.
· Refrain from misrepresenting the nature, amount, or purpose of any fee.
Violations of the rule may result in civil penalties enforced by the FTC under its authority in the FTC Act.
Impact on Consumers
The Commission estimates that the rule will save consumers over $10 billion during the next decade and eliminate more than 53 million hours per year in wasted time spent comparing incomplete price listings across platforms.
Industry Adjustments
Many companies in the travel and ticketing sectors began adapting their systems earlier this year in anticipation of the change. The FTC noted that the rule’s purpose is not only to protect consumers but also to encourage fair competition among businesses that already practice transparent pricing.
Enforcement
The FTC has opened channels for consumers to report potential violations through its official site at www.ftc.gov/complaint. The agency says it will prioritize enforcement in industries where hidden fees have been a long-standing issue.
