The Federal Trade Commission (FTC) has issued a ban on surprise junk fees for ticketing platforms, vacation rental sites and hotel fees.
FTC chair Lina M. Khan emphasized the importance of transparency in pricing, stating that consumers should be informed upfront about all charges.
The big picture: The final rule was approved with a 4-1 vote, with Republican commissioner Andrew Ferguson issuing a dissenting statement, expressing criticism of the Biden-Harris administration.
- Ferguson questioned the timing of the rule’s adoption by the current administration and suggested that Trump’s incoming administration should have the opportunity to decide on its enforcement.
- President Biden, however, supported the FTC’s decision, highlighting the detrimental impact of hidden fees on consumers and commending the commission for taking action on his requests.
- The FTC’s ruling was made after receiving feedback from over 60,000 consumers who expressed concerns about similar proposed rules in 2023.
