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The Federal Trade Commission (FTC) has issued a new rule banning surprise “junk fees” in industries like live-event ticketing, hotels, and vacation rentals.

What’s the deal:  Under the new Junk Fees Rule, businesses are now required to clearly disclose the total price upfront, including all mandatory fees like “resort fees,” “service fees,” or “convenience fees.” The most prominently displayed price must reflect the true all-in cost, preventing consumers from encountering unexpected charges during checkout.

The FTC estimates that these changes will save Americans up to 53 million hours annually in time otherwise spent navigating hidden fees, translating to approximately $11 billion in savings over the next decade. The regulation is expected to significantly impact live-event ticket sales and short-term lodging, industries where such fees have been most prevalent, while also setting a precedent for broader transparency across other sectors. The rule is slated to take effect 120 days after its publication in the Federal Register, marking a substantial step toward consumer protection and cost savings.

FTC official reacts: In a statement, FTC Chairwoman Lina Khan said, “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 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.”