FTC Cracks Down on Hidden ‘Junk Fees’ for Tickets, Hotels, and Rentals

The Federal Trade Commission (FTC) has unveiled a major rule targeting “junk fees,” aiming to save consumers time, money, and frustration. Announced on Tuesday, the new regulation bans hidden charges for event tickets, hotel stays, and vacation rentals.

Transparent Pricing to Save Consumers Billions

Under the rule, businesses must show the full cost upfront, eliminating surprise add-ons like “resort fees” or “convenience fees” at checkout. According to the FTC, this change could save Americans over $11 billion in the next ten years while reclaiming 53 million hours spent searching for accurate pricing.

“Whatever price you see initially is what you’ll pay—no surprises at the end,” said FTC Chair Lina Khan in a conversation with ABC News. “These hidden fees cheat consumers and undercut honest businesses.”

The rule, which is expected to take effect in April next year, requires companies to prominently display the total cost at the start of any purchase process.

“This is about giving people confidence when they shop and ensuring they’re not tricked by last-minute pricing tactics,” Khan added.

A Key Part of Biden’s Push to Lower Costs

The initiative aligns with President Joe Biden’s broader agenda to reduce financial pressures on American families. Last week, the Consumer Financial Protection Bureau (CFPB) issued a separate rule to rein in overdraft fees charged by banks, another move designed to help households save money.

“This rule builds on my administration’s ongoing efforts to lower costs and eliminate junk fees,” President Biden said. “We’re saving families hundreds of dollars each year.”

Businesses Push Back, Legal Battles Expected

Not everyone supports the FTC’s move. The U.S. Chamber of Commerce, a leading business lobby, slammed the rule as government overreach that limits how companies structure their pricing.

“This is an attempt to micromanage businesses and restrict pricing flexibility for consumers,” the Chamber stated.

The Chamber has already challenged other FTC rules in court, such as the recent ban on noncompete clauses. Khan, however, is confident in the FTC’s legal standing: “We’re on solid legal ground here. Addressing junk fees has bipartisan support in Congress, and this rule is simply common sense.”

Khan’s Bold Leadership Faces New Challenges

Lina Khan’s tenure as FTC Chair has been marked by aggressive enforcement of consumer protection laws and antitrust actions targeting industries like Big Tech and pharmaceuticals. Her leadership has earned widespread attention—and criticism—from both business groups and political opponents.

However, the FTC’s direction could soon change. Last week, President-elect Trump nominated Republican Commissioner Andrew Ferguson to replace Khan, signaling a shift in leadership.

For now, Khan remains focused on her priorities: “Junk fees are everywhere, and I’m committed to ensuring strong enforcement continues,” she said.

As for her future? Khan’s focus remains squarely on her current role. “I’m just doing my job, day by day, and I’m heartened by the support for a stronger FTC across the country.”

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