Travelers across the United States can finally celebrate a major victory against the hotel industry’s deceptive pricing practices. The Federal Trade Commission’s new rule against “junk fees” officially took effect on May 12, 2025. This regulation makes it illegal for hotels and vacation rental companies to advertise one price only to surprise customers with additional mandatory charges at checkout. These hidden costs are commonly known as “resort fees” or “amenity fees.” They have long frustrated consumers who discover their $200 hotel room actually costs $250 or more after undisclosed fees for Wi-Fi, gym access, or pool use.
TThe rule explicitly targets bait-and-switch tactics where companies advertise an attractive base rate to lure customers in. They then pile on mandatory charges that significantly increase the final price. Under the new regulations, any mandatory fee must be included in the advertised price upfront, giving travelers complete transparency when comparing options. The change comes after years of consumer complaints and advocacy efforts to end the deceptive practice.
How The New Rule Targeting Hotel Hidden Fees Protects Consumers
The FTC’s regulation doesn’t ban resort fees or cleaning fees. Instead, it requires hotels and vacation rental platforms to include all mandatory charges in the advertised price from the start. This means that when you see a room advertised for $350 per night, that must be the actual price you’ll pay, with any resort fees already factored in. If there’s a $50 resort fee, the hotel must display the room as $400 with a notation explaining that the price includes the resort fee.
The rule extends beyond just hotel bookings. Live event ticketing companies like Ticketmaster must now include service fees in their advertised prices. Vacation rental platforms must display cleaning fees upfront rather than revealing them at checkout. These changes aim to create a more honest marketplace where consumers can compare options fairly.
Companies that violate the new rule face consequences. The FTC can impose penalties exceeding $50,000 per violation, creating a strong incentive for businesses to comply. Consumers who encounter hidden fees can file complaints directly with the FTC through their website or the Consumer Financial Protection Bureau.
