The Federal Trade Commission (FTC) passed a rule on Tuesday requiring ticket sellers across the US to disclose total prices in a crackdown on “junk fees”.
The Junk Fees Rule aims to ensure that pricing information is presented in a timely, transparent, and truthful way to consumers of live-event tickets and short-term lodging, two industries whose pricing practices the FTC has been probing. The FTC said that consumers searching for tickets or hotels will no longer see service fees and other sundries inflating the advertised price.
By requiring up-front, all-in pricing, the FTC said the rule “will make comparison shopping easier, resulting in savings for consumers and levelling the competitive playing field”.
The FTC estimates that the Junk Fees Rule will save US consumers up to 53 million hours per year of wasted time spent searching for the total price for live-event tickets and short-term lodging. This time savings is equivalent to more than $11bn over the next decade.
“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,” said FTC chair Lina M. Khan.
“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. I urge enforcers to continue cracking down on these unlawful fees and encourage state and federal policymakers to build on this success with legislation that bans unfair and deceptive junk fees across the economy.”
Two-year investigation
The Junk Fees Rule comes at the end of a two-year investigation by the FTC into pricing. More than 70,000 comments have been received from the public and businesses since 2022. Outgoing US President Joe Biden called for a limit on junk fees last year.
Businesses are now required to clearly and conspicuously disclose the true total price inclusive of all mandatory fees whenever they offer, display, or advertise any price of live-event tickets or short-term lodging. Businesses cannot misrepresent any fee or charge in any offer, display, or ad for live-event tickets or short-term lodging.
Live Nation welcomed the FTC development, adding that it introduced all-in pricing in 33 states in 2023.
The company said in a statement: “We’ve led the industry by adopting all-in pricing at all Live Nation venues and festivals and applaud the FTC’s industry-wide mandate so fans will now be able to see the total price of a ticket right upfront no matter where they go to see a show or buy a ticket.”
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