The Federal Trade Commission (FTC) has introduced a new Junk Fees Rule targeting hidden costs in live event tickets and accommodation bookings. This regulation aims to provide consumers with transparent, upfront pricing and is expected to save Americans billions of dollars.

Key Points of the FTC Junk Fees Rule:

• Businesses must display the total price, including all mandatory fees, upfront
• Applies to live-event tickets and short-term lodging
• Prohibits misrepresentation of any fees or charges
• The most prominent price must be the all-inclusive price
• Takes effect 120 days after Federal Register publication

According to FTC Chair Lina Khan, this rule will eliminate hidden charges like "resort fees," "convenience fees," and "service fees" that often substantially increase the final price. The FTC estimates consumers will save up to 53 million hours annually previously spent searching for total prices.

Notable Industry Response:

• Major airlines (Alaska, American, Delta, JetBlue, Hawaiian) have opposed similar regulations through Airlines for America
• Southwest Airlines supports the Biden administration's stance
• The rule passed with a 4-1 FTC vote, Commissioner Andrew Ferguson dissenting

Implementation Timeline:

• Rule becomes effective 120 days post-Federal Register publication
• Future enforcement may depend on FTC leadership changes
• Khan's term has expired but she remains in position

The regulation represents a significant step toward price transparency in event ticketing and accommodation booking, though its long-term impact may depend on future administrative changes.

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