Summary
The FTC has finalized a rule banning “junk fees” for hotels, live-event tickets, and vacation rentals, requiring businesses to disclose total prices upfront.
Set to take effect in April 2025, the rule could save consumers 53 million hours and $11 billion over a decade by eliminating surprise charges like “resort fees” at checkout.
While business groups, like the U.S. Chamber of Commerce, oppose the rule as overregulation, FTC Chair Lina Khan asserts its legality and bipartisan support.
The rule aligns with the Biden administration’s broader efforts to lower costs amid ongoing inflation.
There is already traction here at the state-level. It’s been the law in California since the summer and Minnesota has something similar going into force on Jan 1st.
I expect many more states to follow with their own rules if these federal rules die with the new administration. I expect some noise to be made but wouldn’t be surprised if it survives for some time to avoid more complex state-level that would be more expensive to manage.