# Concealed Charges in Hotel and Concert Applications: A Shift Towards Clarity
In a notable development aimed at safeguarding consumers, the Federal Trade Commission (FTC) has prohibited hotel and concert applications and websites in the U.S. from showing deceptive prices that exclude hidden charges. This recent regulation represents a critical shift in how pricing is conveyed to consumers, guaranteeing that they are not caught off guard by extra expenses during the payment process.
## The Issue of Concealed Charges
For many years, consumers have experienced the annoyance of hidden charges when reserving hotels or buying concert tickets. Initially, they would notice an appealing headline price, only to find, after proceeding through several steps, that the ultimate amount was much higher due to various added fees—like “resort fees,” “service charges,” or “convenience fees.” This tactic not only misled consumers but also complicated the comparison shopping process, making it challenging for them to make informed choices.
## New Regulations: Clarity is Essential
The FTC’s new regulation seeks to abolish these misleading practices by mandating that all fees be revealed upfront. As per the FTC, this adjustment will bolster consumer protection by avoiding unexpected charges at checkout and promoting a more competitive market environment. The commission stated:
> “Consumers looking for hotels or vacation rentals or tickets for shows or sporting events will no longer face surprises from a stack of ‘resort,’ ‘convenience,’ or ‘service’ fees swelling the advertised price.”
To provide businesses sufficient time to comply with these new regulations, the FTC allowed a 120-day notice period prior to the law’s implementation. Consequently, companies must now showcase the total price, inclusive of all fees, as the first amount consumers encounter. While businesses can still impose booking fees, these charges must be included in the initial price displayed.
## Ticketmaster’s Reaction: A Case Study
Interestingly, one of the most prominent violators in the hidden fees realm, Ticketmaster, has sought to present itself as a frontrunner in adhering to the new law. In a recent blog entry, the company asserted it was “fully committed” to upfront pricing, emphasizing its dedication to clarity. However, this announcement coincided with the enforcement of the FTC’s new regulation, raising questions about the timing of its claim.
Ticketmaster illustrated how its pricing will shift under the new regulations. Formerly, a ticket listed at $80 would only disclose the true total—including a $10.50 service charge—at checkout. Now, consumers will see the complete price of $90.50 upfront, with a breakdown of costs provided during the checkout phase.
## Consequences for Consumers and Businesses
The FTC’s crackdown on concealed charges is anticipated to have significant repercussions for both consumers and businesses. For consumers, the new rules promise a more direct and truthful pricing framework, facilitating easier comparison shopping and potentially leading to savings. For businesses, the obligation to show total prices upfront may create a level playing field, encouraging fair competition based on transparent pricing instead of misleading strategies.
As the hospitality and entertainment sectors acclimate to these modifications, consumers can expect a more truthful and transparent experience when booking hotels and acquiring tickets. This transformation not only empowers consumers but also motivates businesses to implement fair pricing methods that emphasize customer satisfaction.
In summary, the FTC’s prohibition on concealed charges signifies an important stride towards consumer safeguarding and clarity in the marketplace. As we progress, it will be vital for both consumers and businesses to adjust to this new scenario, ensuring that the essence of the law is maintained and that equitable practices become standard in the industry.
