The agency is currently seeking public comments on the rule, known as the Unfair or Deceptive Tariff Business Regulation Rule, having already collected 12,000 comments last year from individuals, businesses, law enforcement groups and others on how They are affected by deceptive rates.
FTC Chair Lina Khan said in a statement that “by hiding the full price, these junk fees make it difficult for consumers to buy the best product or service and punish companies that are honest from the beginning.” The FTC adds that addressing junk fees through its almost 100-year legal mandate Covering “unfair and deceptive acts or practices” is not enough. A new rule with more precise language can do a better job with the details, the agency maintains:
It is an unfair and deceptive practice and a violation of this part for any Business to offer, display or advertise an amount that a consumer can pay without clearly and conspicuously disclosing the Total Price.
In the wake of controversy surrounding Ticketmaster and Live Nation’s handling of tickets to Taylor Swift’s Eras Tour, where robots snatched tickets from real fans, the White House intervened to pressure the ticketing companies to to put an end to hidden fees. The companies agreed to present customers with prices in advance, and now this new rule proposed by the FTC could force other companies in different industries, from airlines to hotels, to do the same.
If successful, the new rule could put an end to bait-and-switch tactics, which consumers have told the FTC they constantly experience. Consumers have also said they often don’t know what certain rates are for. There is a 60-day period to provide comments on the new rule once it is published in the Federal Register.