The Federal Trade Commission announced new rules requiring companies to provide up-front pricing for services such as vacation rentals, hotels and event tickets.
The new rule is intended to eliminate “junk fees,” the added costs that are tacked on when a consumer goes to checkout for a purchase. The new rule “requires that businesses clearly and conspicuously disclose the true total price inclusive of all mandatory fees whenever they offer, display, or advertise any price of live-event tickets or short-term lodging.” In other words, fees are still allowed but must be disclosed earlier in the transaction process.For instance, a person purchasing a ticket for this weekend’s NFL game between the Cincinnati Bengals and Cleveland Browns is shown a ticket price of $110. The ticket contains a $21.40 service fee and a $3 order processing fee, bringing the total before taxes to $134.40. The new rule would likely result in the $134.40 price being displayed before getting to the checkout screen.
The new rules are set to go into effect next year.
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