FTC bans ‘junk fees’ in new ruling

The Federal Trade Commission is cracking down on hidden “junk fees,” issuing a rule that forces companies to disclose the whole cost of a service or event upfront.

The Junk Fees Rule, issued Tuesday, bans bait-and-switch pricing tactics used to disguise the total price of a product before checkout. The FTC says the new rule will make it easier for customers to compare prices on live events and short-term lodging. 

“People deserve to know up front what they’re being asked to pay — without worrying that they’ll later be saddled with mysterious fees that they haven’t budgeted for and can’t avoid,” FTC Chair Lina Khan said. “The FTC’s rule will put an end to junk fees around live event tickets, hotels and vacation rentals, saving Americans billions of dollars and millions of hours in wasted time.”

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