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FTC Finalizes Rule Banning Hidden Junk Fees in Consumer Transactions

The Federal Trade Commission's final rule requires upfront, all-in pricing across lodging, ticketing, and short-term rentals, with private right of action teed up in several states.

The FTC this month finalized a long-anticipated rule targeting so-called junk fees in consumer-facing transactions. The rule requires businesses in covered industries to display the total price, inclusive of mandatory fees, before a consumer is asked to pay. While the federal rule itself is enforced by the Commission, several state consumer protection statutes incorporate FTC standards by reference — creating fresh class-action exposure for hotels, ticketing platforms, and short-term rental marketplaces that fail to comply. Industry groups have already signaled a legal challenge, but compliance teams are not waiting: major booking platforms have begun rolling out all-in pricing defaults ahead of the effective date.