Understanding the Junk Fee Rule

The Federal Trade Commission has introduced a new rule aimed at eliminating junk fees for live events, hotels, and vacation rentals. Hotels can no longer surprise customers with additional resort fees that are not disclosed upfront; instead, they must be presented during the initial booking process. This rule is expected to improve the transaction experience for consumers, even though it does not fundamentally change the prices charged by businesses. While some may view this as a win for consumer transparency, the overall impact on companies and their pricing strategies remains limited.