FTC announces rule that says hidden ‘junk’ fees must be disclosed

WASHINGTON — “You go to buy a ticket to an event or book a hotel. It looks like you’re getting a great price, but by the time all is said and done, the total is way more than you expected,” Action 9′s Jason Stoogenke presented as an example.

New rules could change that.

The Federal Trade Commission finalized a new Junk Fees Rule. It applies to live event tickets, hotels, and convenience or service fees.

“Certainly, anyone who’s ever stayed in a hotel knows that a convenience fee is never convenient. And what we’re trying to do with this is make sure that consumers know up front exactly how much they will pay,” said Douglas Farrar, the director of the Office of Public Affairs at the Federal Trade Commission.

Here’s what the new rule does:

• Businesses must tell consumers the whole truth up front about prices and fees.
• That means the total price must be displayed more prominently than most other pricing information.
• The business must tell you clearly and conspicuously if the tab doesn’t include shipping or taxes.

Here’s what the new rule does not do:

• Stop businesses from having extra fees or charging what they want.

One consumer wrote to the FTC during the public comment period and it read, “It’s one thing to be on guard when walking down a dark alley, but being on guard every time you want to take a vacation, go to a concert, fly home to see a sick loved one — that’s just not fair.”

“What is all this for? And who is it going to?” said Edwina Champion, a consumer.

She told Action 9′s Jason Stoogenke that she knows what happens with the fees on top of the base ticket or hotel room price.

“Everything snowballs when you have fees like that and there’s a fallout to it,” she said.

The new rule should make comparing prices easier so consumers can save time and money.

The FTC estimates consumers spend as much as 53 million hours per year trying to figure out how much they’re paying for events and rooms.

The rule should go into effect in a few months.

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