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FTC Bans Hidden Fees For Live Events and Short-Term Rentals (techcrunch.com) 43

Posted by BeauHD from the cease-and-desist dept.
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.
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FTC Bans Hidden Fees For Live Events and Short-Term Rentals More

FTC Bans Hidden Fees For Live Events and Short-Term Rentals

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  • I hope they're required to list the fees (Score:4, Insightful)

    by Snotnose ( 212196 ) on Wednesday May 07, 2025 @09:31AM (#65358619)
    I for one want to know that $15 of the $45 ticket cost is Ticketshafter's "service" fee.

    • Re: (Score:3, Informative)

      by Holi ( 250190 )

      $45 ticket? Are you going to sit in an empty venue?

    • LOL $45 ticket?!? I guess you haven't been out in a few decades LOL. Even just the base price of a show has been no where near that in decades unless maybe its your neighborhood garage band.

      • Re: (Score:3, Insightful)

        by deekismusic ( 907256 )
        I know it might be hard to comprehend for folks who never expanded their music tastes past the "alternative" bands they dug in highschool 20+ years ago who inevitably sold out to the arena tours, but many of the best musical projects each year are small acts selling out shows for well under 50 bucks. Challenge yourself just a little bit on the artistic front and you may find something special.

        • Re: (Score:2)

          by taustin ( 171655 )

          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).

          • 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.

          • Sadly, most of the shows I'm seeing lead back to ticketmaster one way or another. I bought a couple tickets on stubhub recently, but they just transferred them to ticketmaster. And I'm not talking about your friends' local punk band, but well regarded acts who simply haven't fully broke into peak mainstream. But that's the way it's been for 30+ years. Unless you're delegating your music experience to oldies or uber-commercial stuff, there's a whole world of music out there to experience live on a budget.

        • Re: (Score:2)

          by Holi ( 250190 )

          1. Highschool was closer to 40 years ago.
          2. Unless you are going to small bars, the vast majority of venues are owned or run by Ticket Master and it's ilk.
          3. My taste in music means I don't go to large venues, pretty much ever. Not a lot of rockabilly outside of small bars.

    • I can't believe everyone is focusing on a number I pulled out of my ass to illustrate the issue, instead of the actual issue.

    • 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.

    • Until credit card company fees are required to be disclosed on the bill, the system will remain broken.

  • print at home fee or must pay shipping allowed?

  • 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.

    • 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.

  • 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.

    • Taxes and fees are included in every bill. Perhaps get glasses so you can see them because everyone else does.

      • 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".

      • Yeah at the end just before you hit submit on your payment. They list a $150 concert ticket and several screens into selecting it, entering your details, entering your payment method and then on the last page you're presented with a laundry list of fees taking that $150 ticket to $250

      • 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)

      by SirSlud ( 67381 )

      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)

        by SirSlud ( 67381 )

        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.

        • Some merchants do. Probably one where I commonly see it is at average bars. A Heineken will be listed at $7 and $7 + tip (unless your'e an asshole) is all that's coming out of your wallet. Unless it's some high end bougie bar, You're likely to find taxes on your receipt. Most bars aren't competing on prices, but instead atmosphere. Cause when it comes down to it if you're that price conscious, you're better off to go by a 12 pack of Heineken at the liquor store and go sit on your ass at home and drink.
      • Fees are also done to make prices look cheaper when there is actually competition. Of course we know Ticket Shafter has no competition.There might be a few other outfits that sell concert tickets but when a band puts tickets up for sale they generally select one platform to put them on, usually Ticket Shafter. It's not like most bands put their tickets up on 3 different platforms and let those platforms battle it out on pricing. But when there is competition using fees you can make your prices look cheaper

      • 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)

      by quenda ( 644621 )

      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?

      • Gas stations probably don't list taxes because it would probably make your gas station receipt look like a CVS receipt with all the entities that got their piece of the pie from you. You're going to have Federal, State, County, maybe City taxes, then environmental fees, road maint fees, protect the children fees, public transportation fees, and more just because fees.

    • Re: (Score:3)

      by spitzak ( 4019 )

      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

  • Don't worry Ticket Shafter will still find some loophole to charge you that Fee Fee. Maybe they'll setup their own payment processor like PayPal, require you to use it and skim payment processing fees through that too.

  • Why is this not a standard mandated practice across ALL industries??

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