The U.S. Federal Trade Commission (FTC) approved a rule on Tuesday requiring ticket sellers, hotels, and vacation rental platforms to disclose total prices upfront, including all fees, and banning them from hiding add-on charges until the final stages of checkout.
The rule is one of the final steps in President Joe Biden's broader initiative to crack down on so-called junk fees, which increase costs for consumers without providing clear benefits.
“We all know the experience of encountering a hidden fee at the very last stage of checkout—these junk fees sneak onto your bill, and companies end up making you pay more because they can. Those fees add up, taking real money out of the pockets of Americans,” Biden said in a statement.
The FTC approved the rule in a 4-1 vote. The sole dissent came from Andrew Ferguson, a Republican commissioner who is set to become the agency’s chair when President-elect Donald Trump takes office. Ferguson opposed the move, stating that “the time for rulemaking by the Biden-Harris FTC is over.” However, he did not clarify whether the FTC should enforce the rule under Trump’s administration.
Trump could attempt to withdraw the rule for further review, and the incoming Republican-controlled Congress could also move to vacate it through legislation.
Despite the political divide, Republican Commissioner Melissa Holyoak voted in favor of the rule, saying it “helps protect consumers and competition, while also preserving flexibility for businesses to engage in lawful advertising and pricing practices.”
Under the rule, service fees, resort fees, and other common surcharges added to bookings must be included in advertised prices, ensuring consumers see the total cost upfront. However, this final version of the rule is narrower than the FTC’s 2023 proposal, which would have banned hidden and deceptive fees more broadly across industries.
“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,” said FTC Chair Lina Khan in a statement.
The FTC estimates that the new rule will save American consumers 53 million hours per year that would otherwise be spent trying to uncover total costs before making purchases.
