The Federal Trade Commission (FTC) has passed a new rule that will force ticket sellers and hotels to disclose hidden “junk fees” in prices before customers pay. The new regulation mandates that service fees, resort fees, and other charges be included upfront in advertised prices.

The FTC estimates the regulation will save U.S. consumers 53 million hours annually, time previously spent determining true purchase costs. However, it falls short of an earlier, broader proposal that aimed to prohibit hidden fees across all industries. Nonetheless, FTC Chair Lina Khan has hailed it as a step in the right direction, saying, “I urge enforcers to continue cracking down on these unlawful fees and encourage state and federal policymakers to build on this success with legislation that bans unfair and deceptive junk fees across the economy.

Earlier this year, the Consumer Financial Protection Bureau (CFPB) introduced a rule in the same spirit, which limited overdraft fees to as little as $3. The program only targeted banks with at least $10 billion in assets. The CFPB noted that banks make as much as $9 billion a year in overdraft fees.

However, the future of the FTC’s new rule remains uncertain, as Republicans controlling the next Congress could seek to challenge it.

Image by Capvideo.

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