A significant shift in consumer protection is on the horizon as a new Federal Trade Commission (FTC) rule will require event promoters, hotels, and lodging sites to disclose extra fees upfront. This rule, which will take effect in 120 days from December 17, 2024, aims to combat the prevalence of unexpected 'junk fees' such as resort fees, cleaning fees, and processing fees that consumers often encounter after seeing advertised prices [ab009e91].
The hotel industry has been advocating for greater transparency in lodging fees, particularly resort fees, as consumer expectations evolve. The American Hotel & Lodging Association (AHLA) has called for federal legislation to mandate the disclosure of all lodging fees, responding to changing travel patterns over the past decade. This initiative aims to ensure that consumers are fully informed about the total costs associated with their hotel stays, which often include hidden fees that can significantly inflate the final price [3be32adf].
In Colorado, the House Business Affairs & Labor Committee has passed HB24-1151, known as The Disclose Mandatory Fees in Advertisements bill. This legislation requires companies to display the full price of products, including any mandatory fees, thereby preventing hidden fees and misleading advertising. The bill aims to empower consumers by allowing them to compare prices accurately and trust that the price they see is the price they will pay. Violations of this law could result in fines for companies [5a82be3b].
As these legislative efforts unfold, the hotel industry’s push for federal standards on resort fees aligns with broader consumer rights movements aimed at increasing transparency across various sectors. The AHLA's support for mandatory lodging fee disclosures reflects a growing recognition of the importance of clear pricing in fostering consumer trust and satisfaction [3be32adf].
The FTC's new rule is expected to enhance transparency in pricing for hotel rooms, short-term rentals, and tickets to events, marking a significant step forward in protecting consumer rights and ensuring fair pricing practices in the hospitality and events industries [ab009e91].