New federal rule bans "junk fees" on hotels and live event tickets
CBSN
Ever booked a hotel room for $200 only to be surprised by an extra $40 "resort fee" at checkout? A new Federal Trade Commission rule aims to put a stop to such surprise charges by banning so-called junk fees on short-term lodging as well as on tickets to live events.
The rule bans businesses from using such tactics to disguise prices and mislead customers who rent short-term lodging, such as hotels and vacation homes, along with consumers who buy tickets to concerts, sports and other live events, the FTC announced Tuesday.
"People deserve to know upfront 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," FTC Chair Lina Khan said in a statement. "The FTC's rule will put an end to junk fees around live event tickets, hotels and vacation rentals, saving Americans billions of dollars and millions of hours in wasted time."
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