SACRAMENTO, Calif. — There are changes coming for those who plan on booking a hotel or buying concert tickets.
The Federal Trade Commission finalized a new guideline Tuesday targeting "junk fees." The new rule requires live event tickets, hotels and vacation rentals to disclose all pricing upfront.
The total price has to be displayed more prominently than any other costs. The new rule does not stop businesses from charging fees; it just has to tell consumers what the total cost is.
Maureen Paley, a Sacramento-based financial expert, says the changes in junk fees can save people time and money.
"To be clear, fees are not banned. This is not an end to the convenience fee, or the resort fee, but what you can expect - it's not going to be hidden in fine print," said financial coach Maureen Paley. "It's not going to be at the very end of the transaction after you've done all the work of filling your cart or reserving your concert tickets. It will be right up front, so you use it as part of your decision-making process."
The U.S. Chamber of Commerce opposes the change, calling it an attempt to micromanage pricing structures of businesses. The FTC chair said she's confident the new guidelines would hold up to challenges in court.
Junk fees became banned in California after Gov. Gavin Newsom signed a bill into law that took effect in July.
Paley said California has been ahead of the curve in protecting consumers from junk fees. The latest change on the federal level further solidifies efforts in transparency nationwide.
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