The US Federal Trade Commission (FTC) has taken a significant step towards protecting consumers from deceptive pricing practices, banning hidden "junk fees" in the live events, hotels, and vacation rentals industries. The new rule, announced on Tuesday, aims to promote transparency and fairness by prohibiting "bait-and-switch pricing" and other practices that hide total prices and bury junk fees.

According to the FTC, the rule will put an end to surprise "resort," "convenience," or "service" fees that inflate the advertised price when searching for lodging or a ticket to a show or sports game. This means that consumers will no longer be caught off guard by additional fees, making it easier to compare prices when purchasing a rental or ticket. The agency emphasizes that the new rule doesn't prohibit businesses from charging these types of fees, but rather requires them to advertise them and the total cost upfront.

FTC Chair Lina M. Khan welcomed the move, stating that "people deserve to know up-front what they're being asked to pay—without worrying that they'll later be saddled with mysterious fees that they haven't budgeted for and can't avoid." Khan urged enforcers to continue cracking down on these unlawful fees and encouraged state and federal policymakers to build on this success with legislation that bans unfair and deceptive junk fees across the economy.

The new rule also introduces specific requirements for businesses, including the need to make the total price displayed more prominently than any other pricing information. Additionally, businesses that don't disclose shipping or taxes in the advertised price must clearly disclose those fees before the consumer enters their payment information.

The FTC estimates that the new rule will save consumers up to 53 million hours per year in wasted time spent trying to find the total price for lodging and live-event tickets. This significant time-saving is expected to have a positive impact on consumer confidence and overall satisfaction with online transactions.

However, the future of the rule remains uncertain, as President-elect Donald Trump is set to take office next month. It's possible that his administration may seek to withdraw the rule, which could undermine the FTC's efforts to protect consumers. The nomination of Andrew Ferguson, a current Republican FTC commissioner, to replace Khan may also influence the rule's fate.

Despite these uncertainties, the FTC's move is a significant step towards promoting transparency and fairness in the live events and travel industries. As consumers become increasingly savvy and demanding, businesses will need to adapt to these new requirements and prioritize transparency in their pricing practices. The impact of this rule will be closely watched, and its success could pave the way for similar regulations in other industries.