What's happened
The Federal Trade Commission has enacted a new rule requiring hotels, short-term rentals, and ticket vendors to disclose all mandatory fees upfront. This regulation aims to eliminate 'junk fees' that often inflate advertised prices, enhancing transparency for consumers. The rule will take effect in 120 days.
Why it matters
What the papers say
According to the New York Times, FTC Chair Lina Khan emphasized that consumers deserve to know the full price upfront, stating, "People deserve to know up front what they’re being asked to pay." The Associated Press noted that the rule aims to eliminate deceptive pricing practices, with four of the five commissioners voting in favor. However, TechCrunch highlighted that the rule does not prohibit the fees themselves but mandates their disclosure, which could lead to higher advertised prices. This sentiment is echoed by consumer advocates who argue that while the rule is a step forward, it may not cover all areas of concern, such as fees in broadband and car rentals.
How we got here
The FTC initiated this rule-making process in 2022, responding to widespread consumer complaints about hidden fees in travel and event ticketing. The final rule, approved by four of the five commissioners, focuses on lodging and ticketing, leaving other sectors like rental cars and airlines under separate scrutiny.
Common question
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What Are Junk Fees in the Travel Industry and How Will They Affect You?
Junk fees have become a hot topic in the travel industry, especially with the Federal Trade Commission's (FTC) new rule aimed at increasing transparency. As consumers, understanding these fees is crucial for making informed decisions when booking hotels, rentals, and tickets. Below, we answer common questions about junk fees and the implications of the FTC's new regulations.
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How Can Consumers Protect Themselves from Hidden Fees in Travel?
With the recent changes in regulations by the Federal Trade Commission (FTC), consumers are now better equipped to navigate the often murky waters of travel pricing. Understanding how to protect yourself from hidden fees is crucial for making informed decisions when booking hotels, short-term rentals, and event tickets. Below are some common questions travelers have regarding these new rules and how they can safeguard their finances.
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How are tech investments influencing sports initiatives?
The intersection of technology and sports is becoming increasingly significant, with major investments shaping initiatives that promote diversity and mental health. As companies like Bill Gates' Pivotal commit funds to support women in tech, and sports organizations address mental health challenges, many are left wondering how these trends will evolve. Below are some common questions about the impact of tech on sports initiatives.
More on these topics
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The Federal Trade Commission is an independent agency of the United States government whose principal mission is the enforcement of civil U.S. antitrust law and the promotion of consumer protection.
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Donald John Trump is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.
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Lina M. Khan is an American legal scholar specializing in antitrust and competition law in the United States. She is an associate professor of law at Columbia Law School.