Platforms must clearly display total prices to customers upfront before asking for payment
Starting today, the Federal Trade Commission’s rule banning hidden junk fees for hotels, live-event tickets and short-term rentals takes effect. It aims for pricing transparency for customers.
What does it mean?
Platforms including Ticketmaster, Vivid Seats, StubHub and Airbnb must clearly display total prices upfront, before asking for payment.
Charges like “service” and “processing” fees can’t be hidden. Companies also cannot be vague about any fees they charge and must provide clarity to consumers.
Optional add-ons and government taxes can appear later, but only if clearly explained.
The FTC rule could help curb the bait-and-switch tactics that have plagued consumers for years. It is when a service lures in a customer with a low price, only to mention additional charges at the time of billing or checkout.