FTC Enacts Nationwide Ban on Hidden Hospitality and Lodging Resort Junk Fees

WASHINGTON — The Federal Trade Commission (FTC) voted on Monday to adopt its finalized Trade Regulation Rule on Unfair or Deceptive Fees, establishing an absolute nationwide prohibition on hidden "drip pricing," mandatory resort fees, and unadvertised processing charges across hotels, short-term rental platforms, and live entertainment ticketing websites.

The regulatory action, spearheaded by FTC Chair Lina Khan, requires commercial hospitality and ticketing platforms to clearly and conspicuously display the total price—including all mandatory fees and service charges—on the initial display screen before consumers enter checkout flows.

Eliminating $12 Billion in Annual Deceptive Surcharges Federal economic consumer research demonstrated that Americans waste tens of millions of hours comparing deceptive travel listings and pay over $12 billion annually in unexpected, unavoidable add-on fees disclosed only on the final payment screen.

"Consumers looking to book a hotel room, rent a vacation home, or buy concert tickets should know the true, final price upfront before they spend time making travel plans," FTC Chair Lina Khan said in Washington. "Hidden resort fees and mandatory service surcharges are deceptive business practices that deceive consumers and penalize honest businesses that advertise transparent prices. This finalized rule restores fairness and pricing honesty across the entire hospitality industry."

Key Enforcement Provisions Under the finalized FTC rule:

• Mandatory All-In Pricing: Advertised prices must reflect the total payable amount, excluding only government-imposed taxes and discretionary optional add-ons.
• Transparent Fee Disclosures: Platforms must state upfront whether any fee is refundable, the specific service it provides, and the identity of the third-party processor.
• Civil Penalties for Violations: Commercial platforms found in non-compliance face statutory civil penalties of up to $51,744 per violation.

Consumer rights advocacy federations and travel groups celebrated the landmark rule, emphasizing that all-in pricing enables working families to comparison-shop accurately without fear of surprise billing.