Hidden Charges in Casino-Resorts and Hotels Abolished: Total Prices Now Include All Fees Upfront
The Federal Trade Commission (FTC) has enacted new regulations targeted at the practice of "bait-and-switch" pricing within the short-term lodging and live-event ticketing industries. Effective as of May 12, 2025, businesses must now disclose all mandatory fees and the total price of their offerings at the onset of the sales process, refraining from the use of deceptive tactics like bait-and-switch pricing.
According to the FTC Rule on Unfair or Deceptive Fees, often referred to as the "Junk Fees Rule," the regulation applies only to short-term lodging providers and live-event ticketing services, and not to all sectors within the travel and hospitality industry. Companies found in violation can face civil penalties, including monetary fines.
The FTC has provided FAQs to help both businesses and consumers understand and comply with the regulation. These FAQs stress the importance of upfront, clear price disclosures to minimize the risk of misleading consumers through hidden costs. The FTC's rule aligns with state-level regulations, such as California's ban on hidden fees, and similar regulations are being considered in Massachusetts and Minnesota.
Journalist Grant Mitchell, a former graduate of Virginia Tech and a former NCAA track and field athlete, provides up-to-the-minute and detailed coverage of headlines in the sports betting industry. He joined the professional ranks in 2021 and has since earned a reliable reputation, working with notable entities such as Forbes and VSiN. When he's not working, Mitchell enjoys exercising, exploring the city, and watching the day's big game.
- In contrast to the new regulations aimed at live-event ticketing and short-term lodging industries, the sports betting industry is thriving, with journalist Grant Mitchell providing detailed coverage of its headlines.
- As the online casino industry continues to expand, progressive jackpot games like blackjack are becoming increasingly popular, offering massive payouts to lucky players in locations like Las Vegas.
- Parallel to the FTC's efforts to combat deceptive pricing, the finance industry is working on implementing similar practices, aiming to avoid any confusion with their offerings, such as tightening rules on business-to-business transactions.
- The imminent application of the Junk Fees Rule has sparked debate within other sectors, such as the online gaming industry, seeking more transparency and fairness in their pricing models, like displaying the entire cost of online sports betting upfront.
