Eliminating "junk fees" has been a talking point of the Biden Administration. One of its last actions before the inauguration of President-elect Donald Trump was the implementation of anti-junk fee measures by the Federal Trade Commission (FTC), which was applauded by Representative Kathy Castor (D-FL) in a recent statement. Castor called it "about fairness, transparency and saving hardworking families both time and money so they can focus on making memories together, not worrying about unexpected charges."
"Junk fees" are a form of bait-and-switch pricing wherein the initial cost of a live event ticket (like a concert) or short-term lodging stay (like a hotel) is inflated by "convenience" or "service" fees that are unexpectedly added to the total bill.
As a result, the FTC has released a new rule mandating the sale of live-event tickets and short-term lodging stays to include the full price of what is being sold up front and in a way that is clearly visible to buyers. This does not mean convenience or service fees are eliminated altogether or are intended to influence pricing strategies; instead, they are meant to make businesses fully transparent about the price of their product.
The FTC estimates that such new measures will save consumers up to $11 billion over the next ten years.
Rep. Castor praised the new rule in her statement, saying, "Families shouldn't have to play a guessing game when planning a night out or a trip. Sneaky hidden fees are a burden. They drive up costs and leave families frustrated at checkout. This new rule ensures that the price you see for concert tickets and hotel stays is the price you pay—no hidden fees, no surprises."
Additionally, Rep. Castor referenced her No Hidden Fees on Extra Expenses for Stays (FEES) Act introduced with Representative Young Kim (R-CA) last December, adding, "The FTC junk fee rule mirrors legislation I led to reign in out-of-control Junk Fees and lower costs. It's about fairness, transparency, and saving hardworking families both time and money so they can focus on making memories together, not worrying about unexpected charges."
