FTC Cracks Down on “Junk Fees” with Bold New Rule
In a major win for consumers, the Federal Trade Commission (FTC) has rolled out a sweeping new rule to eliminate hidden “junk fees” that inflate prices on everything from hotel bookings to concert tickets and online purchases.
Dubbed the “Rule on Unfair or Deceptive Fees,” the regulation requires businesses to clearly disclose all fees upfront, banning sneaky add-ons that appear only at checkout.
“Americans are tired of being nickel-and-dimed,” said FTC Chair Lina Khan. “This rule brings honesty back to pricing.”
💡 What’s Covered?
The new rule applies across industries and targets:
- Service fees for event tickets
- Hidden surcharges in online shopping
- Surprise “resort fees” at hotels
- Bogus administrative charges in financial services
Violators could face hefty fines and legal action for failing to comply.
🧾 Why It Matters
The FTC estimates Americans pay tens of billions in junk fees each year. These charges often distort competition and make it harder for consumers to comparison shop.
“Transparent pricing isn’t just fair — it’s essential for a functioning market,” said consumer watchdog Erica Miles.
📆 What’s Next?
Businesses have six months to update pricing practices. The FTC will actively monitor compliance and investigate complaints.
Consumers can report violations at reportfraud.ftc.gov.
