On December 17, 2024, the Federal Trade Commission (FTC) announced the finalization of the Junk Fees Rule. The Rule, formally titled the Trade Regulation Rule on Unfair or Deceptive Fees, is scheduled to take effect on May 10, 2025. The Rule requires businesses that offer a price for live-event tickets or short-term lodging (e.g., hotels, vacation homes, and other short-term rentals) to clearly and conspicuously disclose all mandatory fees associated with any good or service offered, and to do so more prominently than other pricing information. It also generally prohibits businesses from misrepresenting fees or charges in any offer, display, or advertisement for live events and short-term lodging. The Rule does not prohibit any specific type of fee or pricing practices, such as itemization of fees or dynamic pricing. Instead, the Rule focuses on ensuring that all charges, other than taxes, are clearly disclosed at the outset of the consumer’s purchasing journey. For the hospitality industry in particular, this Rule ushers in a new era of pricing transparency.
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