Federal Trade Commission's crackdown on junk fees goes into effect this week, here's how you can save money
Say goodbye to hidden fees because starting on Monday, the Federal Trade Commission will implement its new rule on unfair or deceptive fees.
They have been the source of a lot of frustration for many who go to sporting events, concerts, and other live, ticketed shows. You search the website, pick out your seats, and before you finally check out, you find that $10, $13, or more has been added to the price, and this is what the FTC is trying to crack down on.
The new rule really targets two big industries, live-event ticketing is one of them, so that means Ticketmaster, Vivid Seats, and StubHub.
It also goes after short-term lodging industries like Airbnb. Maybe you've tried to rent a hotel room for a couple of nights. So, how will it affect them? Total prices will have to be listed more prominently on their websites.
Meanwhile, places like hotels won't be able to tack on fees not immediately reflected in the total price. For example, they can't surprise you with cleaning fees on the last page.
Basically, the rule instructs businesses to be more transparent with consumers on fees. They will have to tell you exactly what they are for. It also calls for them to avoid using vague phrases like convenience fees, service fees, or processing fees.
Finally, if you've ever been annoyed by credit card fees, under the new rule, they will not be allowed to be put into a price unless that business gives you other ways to pay.
If you've got any questions, the FTC has a frequently asked questions page on their website outlining how it will work.
