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The U.S. Federal Trade Commissionpassed a linguistic rule on Tuesdaybanning hidden “ debris fee ” for alive event , hotels , and vacation rentals . The authority says the novel rule prohibits “ cod - and - switching pricing , ” and other practices that hide total damage and bury dust fees in the live - event ticketing and short - term lodging industries , noting that these “ unjust and deceptive ” exercise harm consumer .
The FTC state consumer will no longer be surprised by “ resort , ” “ convenience , ” or “ service ” fee inflating the advertised terms when searching for lodgement or a ticket to a show or sports biz . As a solution , it will be easier for consumers to equate toll when purchasing a renting or ticket , the agency says .
It ’s worth note that the fresh principle does n’t prohibit businesses from turn on these eccentric of fee , it or else requires them to advertise them and the full cost upfront .
“ People deserve to know up - front what they ’re being asked to pay — without worry that they ’ll later be charge with mysterious fee that they have n’t budget for and ca n’t avoid , ” said FTC Chair Lina M. Khan in apress release . “ I inspire hatchet man to keep cracking down on these unlawful fee and encourage country and federal policymakers to establish on this succeeder with legislating that bans unfair and deceptive debris fees across the economy . ”
The novel rule also requires business enterprise to make the total price expose more prominent than any other pricing selective information . In gain , businesses that do n’t disclose shipping or taxes in the advertised terms must clearly disclose those fee before the consumer enters their payment entropy .
The agency estimates that the unexampled principle will save consumers up to 53 million hours per twelvemonth in squander time spent trying to encounter the total price for accommodate and resilient - event tickets .
As President - elect Donald Trump is set to take federal agency next month , it ’s potential that his administration may seek to recede the rule .
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Today ’s proclamation comes a week after Trump nominate Andrew Ferguson , a current Republican FTC commissioner , to substitute Khan .