Groundwork’s Lindsay Owens on FTC’s Final Rule: “Families deserve freedom from hundreds of dollars in surprise junk fees”
December 17, 2024
Groundwork’s Lindsay Owens on FTC’s Final Rule: “Families deserve the freedom from hundreds of dollars in surprise junk fees”
Today, the Federal Trade Commission finalized a rule to ban junk fees for concert tickets, sporting event tickets, hotels, and vacation rentals, requiring businesses to be upfront and transparent about their prices and pricing structure. Groundwork Collaborative Executive Director Lindsay Owens celebrated the final rule with the following statement:
“Junk fees have become a favorite tool of corporate executives looking to supersize profits on the backs of their customers. Families deserve freedom from hundreds of dollars in surprise junk fees on their next family vacation or concert. That’s what this rule gives them.”
Email press@groundworkcollaborative.org to speak with a Groundwork expert about junk fees and pricing.
BACKGROUND
- The FTC estimates that the final rule will save consumers up to 53 million hours per year to time finding the total price for tickets and lodging, which amounts to more than $11 billion over the next 10 years.
- Junk fees on hotels and live events cost consumers more than $10 billion a year according to the White House Council of Economic Advisers.
- The American Prospect’s “How Pricing Really Works” special issue dove into the world of junk fees and their rise to prominence in corporate pricing schemes. In their reporting, they cited a study from the Government Accountability Office in 2018 that estimated that junk fees for concert tickets and sporting events averaged between 27 and 31 percent of the total ticket price.
- Junk fees often follow the “drip pricing” model, where customers slowly have fees and higher costs tacked on throughout the purchase process. By the time they’re confirming their order, their concert ticket or hotel room is far more expensive than the list price.
