A new FTC rule banning hidden fees in lodging and ticketing takes effect today, forcing businesses into transparency and exposing violators to steep penalties.
At a Glance
- FTC mandates upfront disclosure of all lodging and ticketing fees
- Rule targets deceptive practices like hidden resort and service charges
- Civil penalties of up to $50,000 await non-compliant businesses
- Airbnb and major players are voluntarily updating pricing displays
- Consumers can report violations directly to federal watchdogs
Cracking Down on the Hidden Cost Trap
The Federal Trade Commission’s regulation now mandates that all costs—resort charges, service fees, and miscellaneous add-ons—be disclosed before a transaction is completed. This crackdown on “junk fees” marks a dramatic shift for platforms like Airbnb and Ticketmaster, long criticized for slipping in charges after displaying deceptively low base prices.
By ending the bait-and-switch checkout tactics, the rule enables consumers to compare true costs across platforms without surprise fees. The measure aligns with broader White House efforts to enhance marketplace transparency and protect buyer autonomy. Airbnb is already leading voluntary compliance, updating its listings to show cleaning and service fees upfront, while major hotel chains are under pressure to follow suit.
Watch a report: FTC’s War on Junk Fees Explained.
The change also targets the live events sector, where ticketing platforms frequently obscure the real cost until the final checkout screen. As Cathy Mansfield explained, the rule closes loopholes that allowed companies to “raise prices without looking like they were.” While not eliminating fees, the regulation requires that any fee be plainly visible before a purchase decision is made.
Enforcement and Industry Reaction
The FTC’s Bureau of Consumer Protection is tasked with enforcement, and penalties for non-compliance can exceed $50,000 per violation. Consumers are encouraged to report violations through FTC channels or the Consumer Financial Protection Bureau, helping regulators maintain pressure on resistant sectors.
While some industry players have balked at the operational shifts, voluntary adoption is spreading. Airbnb’s proactive compliance suggests an industry pivot toward transparency rather than confrontation. Analysts believe this rule could inspire similar action in other sectors where pricing remains opaque—from car rentals to telecom bills.
The regulation also complements bipartisan momentum behind the Hotel Fees Transparency Act of 2025, which seeks to codify even stricter standards. If successful, it could mark the start of a new regulatory era in which clear, honest pricing becomes not just expected, but required.
