A new federal rule that targets hidden fees in the sale of live event ticket sales and short-term lodging is now in effect.
The Federal Trade Commission says the goal is to make sure consumers see full prices up front.
Starting Monday, the FTC’s new ‘unfair and deceptive fees’ rule will require businesses to stop hiding extra charges for customers.
The rule applies to anyone selling live event tickets or short term hotel stays, whether online or in person.
It says businesses must show total prices up front, including mandatory fees like cleaning and resort access as long as those charges are known at time of purchase.
Per the rule, optional add-ons, including things like parking or insurances, can still be listed later, but must be clearly explained before checkout.
Businesses that violate the rule may be subject to refunds to customers, civil penalties, and orders to change business practices.
FTC officials say the goal of the new rule is to crack down on junk fees that mislead customers and inflate prices.