FTC Issues Final Junk Fees Rule

The Federal Trade Commission(FTC) recently issued the final Junk Fees Rule aimed at providing consumers with greater clarity and transparency regarding all mandatory fees related to ticketed-live events and short-term lodging. The rule requires businesses to provide clarity and transparency to consumers regarding the fees that they will be required to pay for ticketed events and rentals/lodging.  Businesses are also required to exclude allowable fees up front and must "must clearly and conspicuously disclose the nature, purpose, identity, and amount of fees before consumers consent to pay." Businesses must display the total costs associated with short term rentals more prominently. The rule "does not prohibit any type or amount of fee, nor does it prohibit any specific pricing strategies," Businesses may include any fees it deems necessary for business; however transparency in pricing for consumers is imperative. 

The rule will be effective in 120 days following issuance of the final rule, and will be effective around April 18, 2025. NAR is still reviewing the full rule to assess its impact primarily for short term rental owners and businesses, and will provide relevant updates.