FTC Issues Final Rule on Junk Fees

More than two years after it first said it was exploring a rule to clamp down on junk fees, the Federal Trade Commission unveiled on Tuesday a final rule banning the practice.  

The rule affects multiple industries but is heavily targeted toward travel companies, specifically hotels, short-term rental companies, and online travel agencies. 

"(The final rule) does not prohibit any type or amount of fee, nor does it prohibit any specific pricing strategies. Rather, it simply requires that businesses that advertise their pricing tell consumers the whole truth up-front about prices and fees," the FTC said in a press release.

There are two practices that would be prohibited: 

Misrepresenting the total cost by omitting mandatory fees Misrepresenting the nature and purpose of a fee

“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