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This week, the Federal Trade Commission (FTC) voted to issue a final rule targeting so-called “junk fees” in the short-term vacation rental (STVR), hotel, and live-event industries. The final rule will require STVRs and other lodging businesses to clearly and conspicuously disclose the total price of their services upfront, inclusive of all mandatory fees.
While the text of the final rule has been released, it will not go into effect until 120 days after its publication in the Federal Register which has not yet occurred. The full text of the final rule can be found here and additional guidance from the FTC can be found here.
According to the FTC, the final rule:
- Requires businesses to clearly and conspicuously disclose the total price of their service, inclusive of all mandatory fees whenever they offer, display, or advertise any price for live-event tickets or short-term lodging. Businesses cannot misrepresent any fee or charge in any offer, display, or ad for live-event tickets or short-term lodging.
- Requires businesses to display the total price more prominently than most other pricing information. This means that the most prominent price in an ad needs to be the all-in total price—truthful itemization and breakdowns are acceptable but should not overshadow the overall total price.
- Requires businesses that exclude allowable fees upfront to clearly and conspicuously disclose the nature, purpose, identity, and amount of those fees before consumers consent to pay. For instance, businesses that exclude shipping or taxes from the advertised price must clearly and conspicuously disclose those fees before the consumer enters their payment information.
- Will not supersede or otherwise affect any state law unless the state law is inconsistent with the rule. In effect, the final rule establishes a regulatory floor rather than a ceiling.
Congress Set to Pass Fee Transparency Legislation
In addition to the FTC rule, Congress released government funding legislation last night which includes language to require STVRs, hotels and other entities to clearly, conspicuously, and prominently disclose the total price of services upfront.
Under the legislation, businesses would be required to:
- Display the total price of services when advertising and marketing their services.
- Disclose the total price of services offered when the price is first displayed to consumers and throughout the purchasing process.
- Disclose, prior to the final purchase, any tax, fee, or assessment imposed by any government entity, quasi-government entity, or government-created special district or program on the sale of covered services.
The federal legislation will not preempt any state laws that already require businesses to display total prices upfront. If passed by Congress and enacted into law later this week, the new requirements would go into effect in March of 2026.
Outlook
VRMA is carefully reviewing the regulatory and legislative actions announced this week and will be engaging the Federal Trade Commission to seek additional guidance on how they intend to implement any new federal requirements. VRMA will be sure to keep members updated with the latest information.
Please reach out to VRMA’s Government Affairs Manager Alex McIntyre at amcintyre@vrma.org with any further questions.
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