The Federal Trade Commission (FTC) has introduced a new rule requiring hotels, short-term lodging companies, and live event ticketing companies to disclose additional charges often termed as "junk fees." These fees, which can be labeled as "resort," "destination," or "hospitality service" fees, have long been a source of frustration for travelers. They often appear to offer perks such as “premium” internet access or gym usage, which many travelers feel should be included in the standard room rate or are services they do not necessarily want.
The rule, announced in December, aims to increase transparency in pricing, allowing consumers to make more informed decisions. Cathy Mansfield, a professor specializing in consumer and commercial law at Case Western Reserve Law School, explained that these fees allow businesses to effectively raise prices without it being immediately apparent to consumers. However, Mansfield expressed concerns about the enforcement of this rule, especially given the Trump administration's efforts to reduce staff at the Consumer Financial Protection Bureau (CFPB) and the dismissal of two FTC commissioners. These actions have led to questions about how effectively the rule will be enforced and whether it will truly protect consumers as intended.
Despite these setbacks, Chris Mufarrige, the director of the FTC’s Bureau of Consumer Protection, reassured that the agency remains committed to pursuing enforcement actions against companies that violate the law, including those related to deceptive fee practices. Additionally, the Trump administration took steps towards price transparency in the live entertainment industry through an executive order, directing the FTC to ensure clear pricing at all stages of the ticket purchasing process.
The real-life impact of undisclosed junk fees was illustrated by Laurent Bacinski, a French traveler who faced unexpected charges during his trip to New York City. Despite pre-paying for his stay via a travel app, he was still required to pay a $500 deposit at check-in, from which the hotel deducted taxes and a nightly “destination fee” for services he did not need. This example highlights the importance of the FTC's rule, which seeks not to eliminate these fees, but to ensure they are clearly disclosed to consumers.
According to Mansfield, the core principle of the new rule is transparency. By requiring businesses to disclose the full price upfront, whether for hotel bookings, concert tickets, or service fees, consumers are better equipped to avoid being misled. This push for transparency has already led to some voluntary compliance, as noted by Lauren Wolfe, counsel for Travelers United, a non-profit organization that has sued major hotel chains over undisclosed resort fees. Wolfe mentioned that since the rule's announcement, more companies have begun to voluntarily disclose these fees.
In a related development, Airbnb announced in April that it would start displaying cleaning and service fees upfront for its customers worldwide. Furthermore, Wolfe highlighted another legislative effort, the Hotel Fees Transparency Act of 2025, which passed the U.S. House of Representatives in April and is now awaiting Senate approval. The combination of the FTC rule and this bipartisan bill indicates a significant move towards ending hidden hotel resort fees, an issue that seems to unite Americans across the board.
An analysis by CNBC Travel of booking websites for a stay at Balboa Bay Resort in Newport Beach, California, revealed mixed compliance with the new rule. Out of ten booking sites reviewed, seven disclosed the resort fee in some form, while three did not. Mansfield advises travelers who encounter undisclosed fees to file complaints with the FTC, emphasizing that the agency's online complaint system is user-friendly and can lead to enforcement actions. She also recommends using the CFPB’s complaint system and contacting the consumer fraud division of their state Attorney General’s office.
If formal complaints do not yield results, Mansfield suggests that travelers might find success by voicing their grievances on social media, as companies often respond to public pressure. The overarching message is clear: transparency in pricing is a crucial step towards better consumer protection, and while the new rule is a positive development, its effectiveness will depend on rigorous enforcement and continued advocacy from both consumers and watchdog organizations.