On this episode of "Protecting Your Money," Randy Hutchinson of the Better Business Bureau of the Mid-South explains the FTC's new Junk Fees Rule.
The rule, which took effect in May 2025, does not apply to long-term rentals. Instead, it focuses on preventing deceptive pricing in industries such as live event ticketing and short-term lodging, including hotels, Airbnb, and Vrbo. The rule prohibits bait-and-switch tactics and requires businesses to disclose the total cost upfront, including all applicable fees.
While optional fees and taxes can still be shown later, businesses must be truthful about the fee purposes and amounts.
"The FTC estimates the rule will save consumers over 50 million hours per year in wasted time searching for total prices," said Hutchinson.
**Episode originally aired Tuesday, June 08.
Click here for the Tuesday, July 15 episode.