The Federal Trade Commission’s new rule mandates businesses to display the total price, including all additional fees, upfront

The Federal Trade Commission (FTC) announced a new rule banning hidden junk fees for hotels, live-event tickets and short-term rentals. 

Effective in 120 days, the rule mandates businesses to display the total price upfront, including all additional fees, ensuring transparency before consumers commit to payment.

FTC Chair Lina Khan emphasized that the rule would save Americans billions of dollars and more than 50 million hours in searching for the actual prices of their purchases.

While the rule received bipartisan support, FTC Commissioner and Donald Trump’s pick to replace Khan as chair, Andrew Ferguson, dissented, questioning the timing of the rule under the Biden administration.