Consumers are one step closer to saying goodbye to more hidden junk fees for good.
The Federal Trade Commission announced Tuesday that it had finalized a rule that requires businesses to disclose the total price, including fees, for any live event tickets or short-term lodging they offer consumers.
The ruling is meant to prevent bait-and-switch pricing that omits mandatory fees and additional charges from advertised prices, which the agency called ‘deceptive.’
Officials estimated that the rule could save consumers up to 53 million hours of wasted time per year in searching for the total price of tickets and lodging.
“People deserve to know up-front what they’re being asked to pay — without worrying that they’ll later be saddled with mysterious fees that they haven’t budgeted for and can’t avoid,” said FTC Chair Lina Khan in a press release.
The FTC proposed the rule in October 2023. The final rule was approved in a 4-to-1 vote and will go into effect within 120 days.
Businesses must display the all-in total price of its product most prominently in its advertising and pricing information.
The rule does not prohibit businesses from adding fees, nor does it limit the amount of fees they can charge.
The ruling comes as efforts to bring more price transparency in the ticketing industry have ramped up in recent years after fans struggled to purchase tickets to Taylor Swift’s Eras Tour when the tour was announced in 2022.
Earlier this year, the House passed the Transparency in Charges for Key Events Ticketing, or TICKET, Act. The bill would require ticket sellers to disclose the all-in cost of a ticket including fees. The TICKET Act has yet to be voted on in the Senate.