The Federal Trade Commission (FTC) has taken a significant step towards protecting consumers from hidden fees, approving a new rule that requires hotels and ticket sellers to disclose the total price of a purchase upfront. The rule, which was first proposed last year, targets the often-deceptive "resort," "convenience," and "service" fees that can covertly raise the final price of a hotel stay or live event tickets.

Under the new rule, businesses must provide "up-front disclosure" of the total price of a hotel stay, vacation rental, or live event tickets before checkout. This means that companies can no longer hide extra fees in the fine print, and must instead clearly display the total cost of a purchase, including all fees, when advertising or displaying their prices.

The rule does not ban companies from charging these types of fees, but rather requires them to be transparent about the total cost of a purchase. Additionally, businesses must display the total price of a purchase "more prominently than most other pricing information." While shipping fees and taxes can still be excluded from advertised prices, they must be shown before customers start entering their payment information.

The rule is set to go into effect in April 2025, and is expected to save Americans billions of dollars and millions of hours in wasted time. According to FTC Chair Lina Khan, "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."

This move is part of a larger effort by the FTC to protect consumers from deceptive business practices. In addition to the new rule on hidden fees, the agency has also approved a "click-to-cancel" rule that makes it easier to cancel subscriptions, and expanded its Telemarketing Sales Rule to cover tech support scam calls.

The approval of these rules comes as Andrew Ferguson is set to replace Khan as FTC Chair under the Trump administration. Despite the change in leadership, the FTC's commitment to protecting consumers remains strong, and these new rules are a significant step towards creating a more transparent and fair marketplace.

The implications of this rule are far-reaching, and will likely have a significant impact on the hotel and ticketing industries. By requiring transparency and upfront disclosure of fees, the FTC is giving consumers more control over their purchasing decisions, and holding businesses accountable for their pricing practices. As the rule takes effect, it will be interesting to see how companies adapt to the new requirements, and how consumers respond to the increased transparency.