New Federal Rule Bans Hidden Fees on Concert Tickets, Hotel Stays

TL/DR –

The Federal Trade Commission (FTC) has finalized a rule requiring live event businesses and hotels to disclose up-front the total price of their services, including any fees, in their advertising and pricing information. This rule, which doesn’t limit the fees these businesses can charge, is estimated to save consumers up to 53 million hours per year spent on searching for the final total price and will be effective within 120 days. The decision follows years-long efforts by the Biden-Harris administration to instigate price transparency and minimize hidden fees in the ticketing industry, which saw considerable increase following Taylor Swift’s Eras Tour ticket-selling debacle.

New FTC Rule Requires Live Event Businesses and Hotels to Clearly List Total Prices

American consumers are now closer to eradicating hidden “junk fees” thanks to a new rule announced by the Federal Trade Commission (FTC). The rule requires live event businesses and hotels to upfront disclose the total price, including fees. The rule doesn’t limit the fees that can be charged but ensures they are communicated beforehand.

The rule is projected to save consumers up to 53 million hours annually, reducing time spent searching for the actual total price for tickets and lodging. Approved in a 4-to-1 vote, it’s set to come into effect within 120 days. FTC Chair Lina Khan stressed that people deserve to know what they’re paying for without unexpected fees.

This rule builds on the Biden-Harris administration’s ongoing efforts to control junk fees. The initiative for price transparency in ticketing gained momentum after controversies relating to hidden fees for Taylor Swift’s Eras Tour tickets. This led to fan lawsuits and investigations at both state and federal level.

Following this, the federal government introduced regulations for price transparency and fewer junk fees from ticketing companies, internet and cable companies, and online marketplaces.

In a similar vein, the US House of Representatives passed the TICKET Act earlier this year, mandating ticket sellers to disclose all ticket prices and related fees. The bill is yet to be voted on in the Senate.

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