Federal regulators have unveiled a new rule requiring ticket sellers, hotels, and vacation rental providers to disclose all hidden “junk fees” up front, sparking both praise for consumer protection and concerns about potential impacts on businesses. The Federal Trade Commission (FTC) finalized the rule on Tuesday, aiming to eliminate “bait-and-switch pricing” that surprises consumers with unexpected charges for live events, hotels, and short-term lodging.

FTC Chair Lina M. Khan defended the rule, stating, “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.” The rule, passed with a 4-1 bipartisan vote, will take effect 120 days after it is published in the Federal Register.

The rule does not ban fees entirely but mandates that all prices, including resort, convenience, or service fees, be displayed prominently alongside the advertised price. Additionally, businesses must provide total costs, including shipping and taxes, before a customer submits payment. This move directly addresses consumer complaints, particularly those directed at Las Vegas resorts where mandatory “resort fees” often inflate room prices beyond initial advertisements.

Supporters argue that the rule will save Americans billions of dollars and hours wasted on navigating unclear pricing, restoring trust in businesses and marketplaces. Critics, however, question whether federal intervention is the right approach, arguing that businesses could adapt voluntarily to meet consumer demands for transparent pricing without heavy-handed regulation. Some raise concerns that businesses may simply raise base prices to compensate for this forced transparency, potentially negating savings for customers.

As Las Vegas—a hub for entertainment and tourism—adjusts to these new regulations, this raises critical questions about the future of pricing practices across industries. Will transparency truly benefit consumers long-term, or will businesses shift strategies to offset perceived losses? Can federal oversight coexist with the free-market principles that drive competition and innovation?

The rule’s supporters hail it as a victory for consumers frustrated by hidden costs, while skeptics argue it’s another example of government overreach into private industry. As businesses adapt, the impact on tourism-heavy cities like Las Vegas remains to be seen.

Source: News 3 Las Vegas