### **New FTC Rule Forces Transparency in Pricing for Airbnb, Ticketmaster, and More**
A new Federal Trade Commission (FTC) rule, effective since May 12, is cracking down on hidden fees by requiring companies like Airbnb, Ticketmaster, Booking.com, and StubHub to display all-in pricing upfront. The bipartisan-supported regulation targets “bait-and-switch” tactics in live-event tickets and short-term lodging, ensuring consumers see the full cost before checkout. While businesses can still charge fees like “convenience fees,” they must disclose them early in the shopping process. This change promotes fair competition, helps consumers make informed decisions, and rewards transparent businesses—though many companies resisted the shift because hidden fees historically boosted profits.
### **Why Hidden Fees Persisted—And Why Companies Fought Transparency**
Research shows that drip pricing—revealing fees only at checkout—increases revenue. A study on StubHub found that upfront pricing led to a **28% drop in sales**, as consumers balked at higher initial prices, even if the total matched competitors’ hidden-fee totals. Companies exploit psychological biases—once shoppers commit time to a purchase, they’re less likely to abandon it, even if fees inflate the price. Experts argue this practice distorts competition, as businesses that disclose fees early appear more expensive, pushing consumers toward seemingly cheaper (but ultimately costlier) options. The Biden administration estimates hidden fees cost consumers **billions annually**, prompting legislative efforts to expand pricing transparency beyond tickets and lodging.
### **Consumer Advocates Celebrate the Change—But Will It Expand?**
Advocates like the Consumer Federation of America praise the FTC rule for enabling smarter shopping, especially amid high inflation. However, industries like car rentals and food delivery remain exempt, leaving room for surprise fees. Some companies argue that itemized fees allow customization (e.g., airline seat selection), but critics counter that many fees—like U-Haul’s mandatory “environmental fee”—are unavoidable. With bipartisan support and public approval, similar rules could extend to other sectors, though businesses reliant on hidden revenue streams will likely resist. For now, the shift marks a win for consumers tired of financial sleight of hand—proving transparency doesn’t just feel fair, it works.
*—Emily Stewart, Business Insider*
Ez a cikk a Neural News AI (V1) verziójával készült.
Forrás: https://www.businessinsider.com/all-in-pricing-airbnb-ticketmaster-ftc-hidden-fees-consumers-2025-5.