Biden’s FTC Bans Junk 'Service Fees' For Hotel And Concert Purchases
HuffPost
But the new regulation is vulnerable to being overturned in the Trump era.
The Federal Trade Commission finalized a new federal rule Tuesday that bars hotels and live-event companies from tacking on surprise fees when customers make purchases, deeming them unfair and deceptive practices.
The regulation would require companies to disclose any annoying “convenience,” “resort” or “service” fees upfront with the advertised price so that buyers don’t face sticker shock when they try to check out online. It is slated to go into effect as early as April 2025.
FTC Chair Lina M. Khan said eliminating such “junk fees” would save consumers “billions of dollars and millions of hours in wasted time” when they’re shopping for hotel stays or concert tickets.
“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,” Khan, an appointee of President Joe Biden, said in a statement Tuesday.
With Biden’s presidency coming to a close, the administration has been trying to get a slew of new regulations out the door before President-elect Donald Trump assumes office and federal agencies likely move in a more business-friendly direction.
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