12/18/2024

FTC Finalizes ‘Bait and Switch’ Rule for Event Ticketing and Lodging Sectors

PYMNTS

The FTC has unveiled a rule blocking “bait-and-switch” pricing for hotels and concert tickets.

Such tactics, the Federal Trade Commission (FTC) said Tuesday (Dec. 17) are used by the live-event ticketing and short-term lodging sectors to mask total prices and hide junk fees.

“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,” FTC Chair Lina M. Khan said in a news release.

“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.”

The Junk Fees Rule, approved by the commission in a 4-1 bipartisan vote, is designed to ensure that consumers seeking hotels or tickets for concerts or sporting events won’t be surprised by “resort,” “convenience” or “service” fees.

The commission estimates the rule will save customers 53 million hours per year of wasted time spent looking for the total price for live-event tickets and short-term lodging, the equivalent to more than $11 billion across the next decade.