WASHINGTON D.C. (CelebrityAccess) — The Federal Trade Commission (FTC) on Tuesday announced a new rule to prohibit junk fees in live event ticketing and the hospitality industry.
According to the FTC, the rule aims to protect consumers from unfair and deceptive pricing practices and eliminate harmful business practices in these industries.
“People deserve to know upfront what they’re being asked to pay—without worrying that they’ll later be saddled with mysterious fees they haven’t budgeted for and can’t avoid,” said FTC Chair Lina M. Khan. “The FTC’s rule will put an end to junk fees around live event tickets, hotels, and vacation rentals, saving Americans billions of dollars and millions of hours in wasted time. I urge enforcers to continue cracking down on these unlawful fees and encourage state and federal policymakers to build on this success with legislation that bans unfair and deceptive junk fees across the economy.”
The new rules require businesses to clearly disclose the full cost of a purchase, barring hidden fees such as “resort,” “convenience,” or “service” fees that inflate the final price of concert tickets and hotel rooms.
Designed to increase transparency and make comparison shopping easier, the FTC’s Junk Fees Rule is expected to save consumers an estimated 53 million hours annually by reducing the time spent searching for total prices. The rule could result in approximately $11 billion in savings over the next decade.
Under the new rules, businesses must prominently display the total price, inclusive of all mandatory fees, whenever offering, displaying, or advertising prices for live-event tickets or short-term lodging. They are also prohibited from misrepresenting fees or charges and must provide accurate, upfront pricing information. Additionally, the total price must be presented more prominently than any other pricing information to prevent deceptive advertising strategies.
The FTC commissioners voted 4–1 in favor of the new rule, with Commissioner Andrew Ferguson casting the sole dissenting vote.
Live Nation praised the move, stating: “We’ve led the industry by adopting all-in pricing at all Live Nation venues and festivals and applaud the FTC’s industry-wide mandate so fans will now be able to see the total price of a ticket right upfront no matter where they go to see a show or buy a ticket.”
