What is the new Junk Fees rule? Will you pay more at Tickermaster, Airbnb?
Customers who order tickets online or book a stay when traveling will notice a change in the next time they are online.
The Federal Trade Commission’s Junk Fees Rule went into effect on May 12. The rule requires ticket sellers, hotels and short-term lodging providers to disclose all fees and add-ons up front. The rule does not prohibit the extra fees, but does mean customers will be able to see a total cost from the start.
What types of businesses are covered by the rule?
Any business that sells live-event tickets for things such as concerts, sporting events, music or theater, or short-term lodging is covered under the rule, including resell sites and travel agents. Hotels, motels, vacation rentals and short-term rentals through things such as Airbnb or VRBO are included.
Businesses will be required to “prominently” display the total price that shows all mandatory charges and fees, excluding taxes.
Are there exceptions?
There are some add-on costs that don’t have to be shown upfront, as long as they are disclosed at the point of payment. Those include taxes, shipping charges and optional fees.
Long-term or rental housing with landlord-tenant relationship aren’t covered.
What are some examples of fees that must be disclosed?
The FTC offered a couple of examples covered under the rule:
• An online ticket retailer requires people to pay a fee to purchase live-event tickets online. The fee cannot be avoided and must be included in the total price.
• A resort charges a nightly rate of $199, plus a mandatory resort fee of $39 per day. The required resort fee must be included in the total price.
• A vacation rental adds a cleaning fee that consumers must pay in addition to the nightly rate. The cleaning fee must be included in the total price.
You can see more information on the rule and exceptions here.
Ticketmaster changes
For popular ticket resale site Ticketmaster, the change means it will institute what it’s calling “All In Prices.” Now, ticket buyers will see the full price of tickets, including all fees with the exclusion of taxes.
The change, Ticketmaster said, “helps fans make informed decisions, budget with confidence and avoid surprises at checkout.”
In another change, Ticketmaster will provide real-time sales updates for the most popular shows where wait times could exceed 30 minutes or longer. In those cases, Ticketmaster will be able to see the tour’s price range upfront and updates on ticket availability as well as notifications if a new event date is added while they are waiting.
Airbnb fee
Short-term rental site Airbnb is also showing people the total price of their stay with all fees, excluding taxes, shown from the start. The site first introduced an optional total price display toggle two years ago, a feature that has been used by almost 17 million guests since that time, Airbnb said.