by Donald Wood
Last updated: 8:00 AM ET, Wed December 18, 2024
The United States Federal Trade Commission announced the
passing of a new rule on Tuesday that would require companies in specific industries
to disclose
fees upfront when listing total prices.
According to 6ABC
Philadelphia, ticket sellers, hotels, and vacation rental sites will now be
forced to show service fees, resort fees, and other charges as part of the
total price right away, protecting consumers from last-second charges that jack
up prices.
The FTC passed the rule 4-1, with Republican Andrew Ferguson
voting against the ruling due to “the time for rulemaking by the Biden-Harris
FTC” being over. Republican Commissioner Melissa Holyoak voted in favor of the
rule, saying it "helps protect consumers and competition.”
“We all know the experience of encountering a hidden fee at
the very last stage of checkout — these junk fees sneak onto your bill and
companies end up making you pay more because they can,” President Joe Biden
said. “Those fees add up, taking real money out of the pockets of Americans.”
“I urge enforcers to continue cracking down on these
unlawful fees and encourage state and federal policymakers to build on this
success with legislation that bans unfair and deceptive junk fees across the
economy,” FTC Chair Lina Khan said.
The Biden administration has faced backlash from large
businesses in impacted industries over the changes related to hidden and
deceptive fees, forcing the President to narrow the changes to specific industries,
including travel and tourism.
The FTC believes the new rule would save U.S. consumers an
estimated 53 million hours per year by showing the once-hidden costs upfront.
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