'Junk fees' rule takes effect for live event tickets, hotel rentals
DALLAS - The Federal Trade Commission is cracking down on hidden fees associated with live events.
Ticket Junk Fees
The backstory:
Concerns about ticket prices and hidden fees for live events and hotels have been in the spotlight more and more.
A few years ago, Taylor Swift’s "Eras Tour" made national headlines because of the ticketing process. Part of it was high and fluctuating fees.
What's new:
On Monday, the FTC's rule on unfair or deceptive fees took effect.
"What that means is that businesses in those industries need to include the total price upfront with a few exceptions for all mandatory fees when they’re selling live event tickets or short-term lodging," said Stacy Commarano with the FTC.
The fees aren’t going away, but the new rule requires businesses to display them prominently.
On Ticketmaster, for example, a search for Dallas Stars playoff tickets now also displays a prompt saying, "Prices are all in." Other sites, such as StubHub and Airbnb, show a detailed cost breakdown before the final purchase screen.
Ban on 'junk fees' for live event tickets, hotels goes into effect: What to know
The new rule calls for companies to be transparent with consumers about the prices and fees for tickets to events and hotel stays.
Shipping costs are excluded from the upfront pricing.
Businesses that violate the new FTC rule could face fines and civil penalties.
What they're saying:
"It can be kind of sneaky," said Maddie Piazza, a concertgoer.
"I think it’s a good thing. Especially if there’s people who don’t use the internet often or older people who are buying tickets for a one-time event. They don’t realize that they’re going to be spending more money. So I think that is a good thing," added Mike Wisniewski, another concertgoer.
Even with the added transparency, some people think the customer is still being taken advantage of.
"I feel like we’re kind of screwed either way," Wisniewski said.
What you can do:
If you suspect a business is not following the rules, you can file a complaint with the FTC.
The Source: FOX 4's Steven Dial talked to a spokesperson from the Federal Trade Commission and consumers to gather details for this story.