
FTC Bans Hidden Fees For Live Events and Short-Term Rentals (techcrunch.com) 41
An anonymous reader quotes a report from TechCrunch: The U.S. Federal Trade Commission (FTC) on Monday released new documentation detailing its new "Rule on Unfair or Deceptive Fees." The rule, set to take effect on May 12, prohibits hidden fees for live events, hotels, and short-term rentals. It also bans practices such as "bait-and-switch pricing" and any actions that conceal or misrepresent total prices and fees.
In a newly published FAQ, the FTC offers a guide for these types of businesses, providing detailed information about pricing transparency. The rule will impact businesses, including live-event ticket sellers and short-term lodging providers, like hotels, motels, Airbnb, or VRBO. Third-party platforms, resellers, and travel agents are also covered by the new regulation. (Airbnb already updated its service in advance of this new regulation to show users the total cost of their stay upfront.) [...]
Also included in the FTC's new FAQ are the types of fees that can be excluded, such as taxes or government fees, shipping charges, and charges for optional goods or services people may select to buy as part of the same transaction. (Note that handling charges aren't on this list.) However, the FTC notes that businesses must disclose that it has excluded charges from the total price before asking for payment. For example, if a business excludes shipping charges from the advertised price, it's required to clearly state the amount and purpose of those charges.
In a newly published FAQ, the FTC offers a guide for these types of businesses, providing detailed information about pricing transparency. The rule will impact businesses, including live-event ticket sellers and short-term lodging providers, like hotels, motels, Airbnb, or VRBO. Third-party platforms, resellers, and travel agents are also covered by the new regulation. (Airbnb already updated its service in advance of this new regulation to show users the total cost of their stay upfront.) [...]
Also included in the FTC's new FAQ are the types of fees that can be excluded, such as taxes or government fees, shipping charges, and charges for optional goods or services people may select to buy as part of the same transaction. (Note that handling charges aren't on this list.) However, the FTC notes that businesses must disclose that it has excluded charges from the total price before asking for payment. For example, if a business excludes shipping charges from the advertised price, it's required to clearly state the amount and purpose of those charges.
I hope they're required to list the fees (Score:4, Insightful)
Re: (Score:3, Informative)
$45 ticket? Are you going to sit in an empty venue?
Re: (Score:2)
Re: (Score:3, Insightful)
Re: (Score:2)
How many of those small acts use Ticketmaster? Does Ticketmaster even both with shows that cheap?
Smaller venues I go to handle their own ticket sales, always at the door, and keep 100% of it (or, rather, split with the act in whatever way they agree).
Re: (Score:2)
Lots of them, because Ticketmaster has exclusivity with the venues.
There are lots of venues that aren't sports arenas, and many awesome shows to be seen at these more intimate venues.
Re: (Score:1)
Re: (Score:2)
Re: (Score:2)
Re: (Score:2)
Re: (Score:2)
You aren't new here. That behavior shouldn't be a surprise.
Re: (Score:2)
Why does the breakdown matter? In the end, they can break it down however they want. A "fee" is nothing more than a a component of the price. What regular people care about is the final number they're going to have to pay.
Good luck, we can't even get the swipe fee listed. (Score:3)
print at home fee or must pay shipping allowed? (Score:2)
print at home fee or must pay shipping allowed?
so rio las vegas nv comp offers must now give free (Score:2, Interesting)
so rio las vegas nv comp offers must now give free room when it says free room and must pay resort fee?
Will they just built resort into base rate and say rooms from $29 night? with no resort fee.
MGM does have comp rooms where comp = no resort at any level.
Re: (Score:2)
This rule doesn't prevent fees from being charged, it only requires that they be listed up front, and included in the total dollar amount shown the the customer.
Funny... (Score:2)
So the merchant, in what used to be called a "free" country, cannot sneak in any fees whatsoever.
But the GOVERNMENT can!
If you're going to mandate honest pricing, it should absolutely include every government fee and tax as well. What's good for the goose is good for the gander.
Re: (Score:2)
Taxes and fees are included in every bill. Perhaps get glasses so you can see them because everyone else does.
Re: (Score:2)
Taxes and fees are included in every bill. Perhaps get glasses so you can see them because everyone else does.
Taxes and fees should be included in advertised prices every time it's feasible, and every time they aren't there should be a disclaimer "plus taxes and fees".
Re: (Score:2)
LOL @ America. How is that not already a thing?
I honestly don't know. I do know that Google refuses to give a cogent answer. I search for this stuff about sales taxes and it starts telling me about income taxes. More toilet research at another time perhaps.
Re: (Score:2)
Because we have 50 states and they have different sales tax rates and then on top of that in some states the cities themselves charge a different rate.
Then layer on exceptions like SNAP where some items will have no sales tax applies.
Some states have laws that sales tax must be exclusive. Others leave it up to the shops themselves but having the tax be exclusive is pretty baked into life.
Why do some states make it exclusive? Some of us believe it stems from the "taxes are theft" mindset so they should alwa
Re: (Score:2)
It goes beyond cities. Some neighborhoods have specific taxes/fees to pay for local improvements. Figuring out the tax rate at a particular location is actually a business in and of itself.
Re: (Score:2)
In New Zealand , for the consumer market the advertised price is the price you pay, no hidden fees, no +taxes, etc etc
If it says $100, you pay $100
For the commercial market they can advertise +GST, because businesses can claim the GST back and
It works
Re: (Score:2)
Please read my last two statements again.
This is a political issue more than a technical one.
Re: (Score:2)
Re: (Score:2)
He was indirectly referring to the government throwing a pissfit over Amazon talking about disclosing tariffs rates on their web site, and you missed it.
Re: (Score:3)
You know you will have to pay taxes. You know what those taxes are. The point of saying "no hidden fees" is to prevent merchants for adding fees on at point of sale that you *didn't know about* at the point of perusal and/or adding to a cart.
Merchants take advantages of the fact that you may have spent 5 minutes, 30 minutes, etc trying to find something to add to your cart, and that the consumer will view a "surprise" fee listed at point of sale as a sunk cost to just accept.
The same can't be said about gov
Re: (Score:2)
Just to add on to this, isn't not like I'm saying it would be bad for merchants to include taxes in advertised prices. That could be nice. But "no hidden fees" can also mean just that the fee is listed along side a price. Adding it *for you* to the sticker price is a convenience, as it would be with taxes, but not adding a fee to a product price isn't what makes it hidden - it's not disclosing that that fee even exists up front during the process of shopping before intent to purchase.
Re: (Score:2)
Re: (Score:2)
Re: (Score:3)
For many purchases, you are right. But various governments LOVE to add special "hotel taxes" and other such government fees, that are *not* known or expected by the customer. These sometimes can add a significant cost to the purchase, and it might not be clear that if you stay in a hotel 1 mile away, you won't have to pay the "hotel tax."
Re: (Score:2)
If you're going to mandate honest pricing, it should absolutely include every government fee and tax as well.
Well, obviously! That is what every civilised country does (OK, except the US). If the price says $10, you pay $10. And the receipt will tell you how much of that went to tax.
I remember in the US, the only places that told you the actual price were liquor stores and gas stations. Which seemed odd. Why don't they advertise ex-tax prices like everyone else there?
Re: (Score:2)
Re: Funny... (Score:2)
All gas taxes are included in the advertised price on the billboard and the pump.
Re: (Score:3)
The government is not sneaking in hidden fees. It is the advertiser, by not showing the total including taxes. This is absolutely possible and easy, don't say "taxes vary so they can't do it". They CAN do it, as demonstrated by the fact that they do it in a split second when you hit "buy now". You are right that for many purchases taxes are the biggest hidden fee, if this rule is added and they go after airlines to force the fee to include meals/carryon/checked/seat selection (the user can hit some checkmar
Ticket Shafter Fee Fee (Score:2)
Why? (Score:2)
Why is this not a standard mandated practice across ALL industries??
Re: (Score:2)