FTC Junk Fees Rule Requires Hotels and Ticket Sellers To Disclose Full Prices

As of now, short-term lodging companies like hotels as well as live-event ticket sellers in the U.S. must fully disclose the total price being charged to customers. The rule, which was first announced in December by the Federal Trade Commission (FTC), requires so-called “junk fees” to be listed and included in the final price at checkout.

The FTC Rule on Unfair or Deceptive Fees “prohibits bait-and-switch pricing and other tactics used to hide total prices and mislead people about fees in the live-event ticketing and short-term lodging industries.” However, the junk fees rule does not ban the charges, but rather lets consumers know they exist.

“The junk fees rule is rooted in a simple but powerful principle: transparency,” Cathy Mansfield from the Case Western Reserve Law School told CNBC in December. “When consumers can see the full price up front — whether they’re booking a hotel, buying concert tickets or paying a service fee — they’re in a better position to make informed decisions and avoid being misled.”

In the travel industry, vague and opaque line-item charges like “destination,” “hospitality service,” or “resort” fees that are neither explained nor wanted by a traveler are often deemed “junk fees.” Other abstract charges might be “premium” internet service or admission to a hotel gym.

Ticket Sellers Must Comply With the FTC Junk Fees Rule

Ticket seller Ticketmaster has made the required changes to comply with the FTC junk fees rule. Once a consumer begins the ticket shopping process, the full price is now disclosed up front.

In addition, Ticketmaster will display a customer’s place in line for an event when buying tickets as well as give estimated wait times when it exceeds 30 minutes. The real-time updates will notify customers of price ranges, availability, and if new event dates are announced.

Ticketmaster has long supported a nationwide standard for ticket pricing. According to Ticketmaster COO Michael Wichser, the FTC junk fees rule allows easy comparison of prices across all ticketing sites.

Rival ticket-selling platform SeatGeek also updated its price disclosure policy to adhere to the hidden junk fees rule. Now, when a customer searches for either original or resale tickets, the “all-in-one pricing” feature is set by default.

“Fans deserve pricing that’s clear from the start,” said SeatGeek CEO Jack Groetzinger, per AP News. “We’re proud to roll this out across our platform and encouraged to see the industry move in this direction.”