Consumer Protection

FTC Junk Fees Rule Takes Effect Today

WASHINGTON, D.C. — Today, the FTC’s Junk Fees Rule, approved and finalized under former Chair Lina Khan’s leadership, takes effect. The Rule requires event ticket sellers, hotels and short term lodging providers to provide clear, up-front price disclosures to consumers and bans unfair and deceptive bait-and-switch conduct that drives up prices and squeezes out competition.

“The FTC’s Junk Fees Rule will save Americans over 50 million hours per year and $11 billion over the next decade by cracking down on deceptive fee practices,” said Susan Weinstock, CEO of Consumer Federation of America. “We look forward to vigorous enforcement of the Rule by the Federal Trade Commission, and we urge states to adopt their own junk fees legislation and require transparent pricing across the marketplace.”