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FAQ: FTC Ruling on Junk Fees

Please see and use below answers to commonly asked questions from clients.

  1. What are junk fees?

Junk fees refer to unexpected charges added to the cost of goods or services. These fees are often disclosed only at the last stage of a transaction, which can make it difficult for consumers to know the true price upfront. Examples include hotel resort fees, concert ticket service fees, and unnecessary processing fees.

 

2. What does the FTC’s ruling on junk fees address?

The FTC ruling aims to increase price transparency. Businesses are now required to clearly display the total price of goods and services upfront, including any mandatory fees, so consumers can make informed purchasing decisions from the start of their query.

 

3. Who does the ruling apply to?

The ruling applies to businesses across various sectors, including but not limited to:

  • Hotels and lodging services – INCLUDING Short Term Rentals
  • Ticket sellers for events or transportation
  • Rental car agencies
  • Online marketplaces
Any company that includes additional fees not disclosed in the advertised price


4. When does the ruling take effect?

The ruling will take effect May 12th, 2025. Businesses will have until this date to adapt their pricing and disclosure practices to align with the new requirements. We are working closely with our website designers to make sure our pricing is corrected by this mandated deadline.

 

5. What penalties will businesses face for violating the ruling?

Businesses that fail to comply with the FTC’s ruling may face:

  • Financial penalties
  • Mandatory refunds to affected consumers
  • Legal action, which could include court-ordered corrective measures.


6. How will this ruling benefit consumers?

The ruling aims to:

  • Ensure pricing transparency so consumers can compare options accurately.
  • Prevent surprise costs at checkout.
  • Encourage fair competition among businesses.
  • Save consumers money by eliminating unnecessary or misleading fees.

7. How will this affect the advertisement of my rental property?

For us, this is an easy fix as we have always been transparent about additional fees and taxes when a guest books a property from us. Our only change will be how and where it is displayed on our websites.

Instead adding the taxes and fees to the price when a guest is ready to book, The “All In” price will be display on the search results page that the guest sees based on their date selections.

 

8. Will the third-party booking channels such as AirBnb and VRBO face the same requirements?

Yes, compliance to this federal ruling will be required of all 3rd party booking sites as well.

 

9.  Are there any exceptions to the ruling?

Mandatory government-imposed fees, such as taxes, are typically excluded from this ruling as long as they are clearly identified during the transaction process.

 

10.  What should businesses do to comply?

To comply with the ruling, businesses should:

  • Clearly disclose all mandatory fees upfront in their advertised prices.
  • Avoid deceptive marketing practices that obscure the true cost of goods or services.

Train staff and update systems to ensure compliance with the new regulations.


11. How can consumers stay informed about the ruling?

Consumers can stay updated by visiting the FTC’s website, subscribing to consumer protection newsletters, or following trusted news sources for developments related to the enforcement of this ruling.

Click Here to read the FTC's Junk Fee Ruling