- On May 12, a new law was passed that made “junk fees” and “bait-and switch pricing” illegal.
- The law requires that charges such as resort fees for hotels or cleaning fees for vacation rentals be included upfront in the price a traveler sees when booking.
- While resort fees and cleaning charges aren’t prohibited, they cannot be charged to travelers by surprise after a reservation has been made.
It is possible that a hotel room A new rule by the U.S. Federal Trade Commission, which states that all fees must be disclosed upfront, makes it more likely that a $350 advertised item will cost $350 in reality. The rule prohibits hidden fees or “junk fees,” which include charges for perks travelers don’t expect or want, such as “premium Wi-Fi” or gym access. The rule was implemented on May 12th.
You can also find out more about the A-Team here. May 5 release The FTC states specifically that resort fees must be included when calculating the total cost of a trip. total price of the hotelThe total price must include any cleaning fees that are included in a vacation rental. In the release, it is also stated that “the Rule forbids bait-and switch pricing and other methods used to conceal total prices and deceive people about fees.”
The rule not only makes it clear to travellers what they are expected to pay but also how much. applies to live event ticketing companies Ticketmaster, Eventbrite or similar services. In this case, online ticket sellers who charge people for purchasing live-events tickets online will have to disclose the fee in the overall ticket price.
The new rule does nothing to eliminate resort or ticketing costs, but makes companies disclose these upfront. The cost of a concert or weekend at a hotel will not change, but companies will be required to disclose all fees up front.
This is what the new rule will look like in some of the major hotels MGM Grand The advertised price in Las Vegas includes “+$50.00 resort fee per day.” Instead of selecting a $350 room online, only to find out that there’s a $50 resort charge when you pay for it, the displayed price will be $400 and include the $50 resort cost.
The rule on junk fees is based on a powerful but simple principle: transparency, said Cathy Mansfield of the Case Western Reserve Law School. CNBC When the rule was first introduced in December of 2024. “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.”
When you book a hotel room or short-term rentalIf you find that there are hidden fees when you buy tickets or if you go to the FTC’s website and discover this, you can make a complaint. ftc.gov/media/71268. Penalties for companies who violate the new rule may exceed $50,000. You can also file a complaint at the Consumer Financial Protection Bureau. consumerfinance.gov/complaint.
