Hidden ‘Junk’ Fees Must Be Disclosed, F.T.C. Rule Says

Published On Dec 19, 2024, 1:10 PM

The Federal Trade Commission (FTC) has introduced a new rule requiring hotels, short-term rentals, and event ticket vendors to display the full price, including mandatory fees (like cleaning and service fees), upfront to consumers. This change aims to enhance transparency in pricing, making it easier for consumers to compare rates without being surprised by additional charges at checkout. The rule is set to take effect 120 days after publication in the Federal Register.

Stock Forecasts

The new FTC rule could lead to higher advertised prices in popular destinations like Las Vegas as fees must be included, potentially reducing consumer demand due to perceived higher costs. This could negatively impact hotel and travel stocks, especially those heavily reliant on tourist bookings.

On the flip side, companies that prioritize transparency and adapt quickly to this regulatory change could gain consumer trust and market share. The stock for Airbnb (ABNB) could benefit as it seeks to establish itself as a customer-friendly alternative in the space, leveraging its platform's direct pricing.

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