FTC Junk Fees Rule

The FTC Junk Fees Rule (formally the “Rule on Unfair or Deceptive Fees”) is a US Federal Trade Commission regulation finalised on 17 December 2024 and taking effect on **12 May 2025**. It requires accommodation providers (hotels, motels, inns, short-term rentals) and live-event ticket sellers to **disclose the total price including all mandatory fees BEFORE checkout** — not as a surprise add-on at the final payment step.

The rule covers any business that offers, displays, or advertises live-event tickets or short-term lodging — including third-party platforms (Expedia, Booking.com, Hotels.com, Vrbo, Airbnb, StubHub, Ticketmaster, etc.), resellers, and travel agents. It applies whether the offer appears online (websites, mobile apps), in physical locations, or through other channels. Mandatory fees that must be included upfront: resort fees, destination fees, service fees, amenity fees, cleaning fees on rentals, and any other charge that is not optional for the consumer.

Enforcement and penalties: civil penalties of **up to $51,744 per violation** apply from 12 May 2025 onwards. The FTC and state attorneys-general can pursue companies that do not comply; remedies include civil penalties, injunctions, and mandatory refunds to affected consumers. The FTC estimates the rule will save consumers up to 53 million hours per year of wasted time spent searching for total prices, equivalent to more than $11 billion over the next decade.

Loopholes remain. The rule covers MANDATORY fees only — taxes (which are openly displayed) and TRULY optional fees (paid parking, room-service charges, mini-bar charges) are NOT required to be in the upfront price. Some properties continue to add “optional but hard-to-avoid” charges like parking fees at hotels in dense urban areas, or amenity fees that are technically opt-in but effectively necessary for a normal stay. Consumers should still verify the final total at checkout matches the displayed total.