This bill matters because it tackles a common frustration many people face: hidden or unexpected fees, often called 'junk fees,' that inflate the final cost of a purchase. These fees can make it difficult to compare prices between different services, as the initial advertised price doesn't reflect the true cost. If this bill becomes law, consumers would gain more transparency and certainty about what they're actually paying for tickets and lodging, potentially saving them money and reducing last-minute surprises.
Without this bill, companies can continue to add mandatory fees late in the purchasing process, leading to consumer confusion and dissatisfaction. The legislation would empower the Federal Trade Commission and state governments to crack down on these practices, ensuring that advertised prices are the actual prices. This could lead to a fairer marketplace where businesses compete on clearer, all-inclusive pricing rather than relying on drip pricing tactics.
KEY PROVISIONS
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PROVISION 01
Requires businesses (covered entities) to clearly display the total price of a good or service, including all mandatory fees and government charges, in all advertisements and when a price is first shown to a consumer.
This ensures consumers know the full, final cost upfront, eliminating hidden charges and making price comparisons easier.
PROVISION 02
Prohibits covered entities from imposing or advertising mandatory fees that are excessive or deceptive.
This aims to prevent businesses from charging unreasonable or misleading fees that do not reflect the actual value or cost of a service.
PROVISION 03
For live event tickets, requires sellers to disclose the total number of tickets offered for sale at least 72 hours before public sale and to provide full refunds for speculative tickets if not delivered timely.
This provides greater transparency in the ticketing market, combats misleading practices, and protects consumers from buying tickets that might not materialize.
PROVISION 04
Mandates clear disclosure of refund policies before a transaction is completed and requires refunds to include the total cost of the ticket, including all mandatory fees.
This protects consumers by ensuring they understand refund terms and receive a full reimbursement for all costs paid if eligible.
PROVISION 05
Authorizes the Federal Trade Commission (FTC) to create rules regarding the disclosure and imposition of mandatory or deceptive fees and allows both the FTC and State Attorneys General to enforce these provisions.
This establishes clear regulatory oversight and provides legal mechanisms to crack down on violations, giving the rules real teeth.
Referred to the Committee on Energy and Commerce, and in addition to the Committee on Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
This bill matters because it tackles a common frustration many people face: hidden or unexpected fees, often called 'junk fees,' that inflate the final cost of a purchase. These fees can make it difficult to compare prices between different services, as the initial advertised price doesn't reflect the true cost. If this bill becomes law, consumers would gain more transparency and certainty about what they're actually paying for tickets and lodging, potentially saving them money and reducing last-minute surprises.
Without this bill, companies can continue to add mandatory fees late in the purchasing process, leading to consumer confusion and dissatisfaction. The legislation would empower the Federal Trade Commission and state governments to crack down on these practices, ensuring that advertised prices are the actual prices. This could lead to a fairer marketplace where businesses compete on clearer, all-inclusive pricing rather than relying on drip pricing tactics.
KEY PROVISIONS
AI-extracted
high
Requires businesses (covered entities) to clearly display the total price of a good or service, including all mandatory fees and government charges, in all advertisements and when a price is first shown to a consumer.
This ensures consumers know the full, final cost upfront, eliminating hidden charges and making price comparisons easier.
high
Prohibits covered entities from imposing or advertising mandatory fees that are excessive or deceptive.
This aims to prevent businesses from charging unreasonable or misleading fees that do not reflect the actual value or cost of a service.
med
For live event tickets, requires sellers to disclose the total number of tickets offered for sale at least 72 hours before public sale and to provide full refunds for speculative tickets if not delivered timely.
This provides greater transparency in the ticketing market, combats misleading practices, and protects consumers from buying tickets that might not materialize.
med
Mandates clear disclosure of refund policies before a transaction is completed and requires refunds to include the total cost of the ticket, including all mandatory fees.
This protects consumers by ensuring they understand refund terms and receive a full reimbursement for all costs paid if eligible.
high
Authorizes the Federal Trade Commission (FTC) to create rules regarding the disclosure and imposition of mandatory or deceptive fees and allows both the FTC and State Attorneys General to enforce these provisions.
This establishes clear regulatory oversight and provides legal mechanisms to crack down on violations, giving the rules real teeth.
Subject to penalties provided under the Federal Trade Commission Act (15 U.S.C. 41 et seq.) for unfair or deceptive acts or practices.
Covered entities violating the act or related regulations
GLOSSARY
AI-written
Covered entity
A business that provides short-term lodging (like hotels or vacation rentals) or an online platform for booking it, or a company that sells tickets for live events, including primary and secondary sellers. The Federal Trade Commission can also expand this definition.
Mandatory fees
Charges that a consumer must pay as part of purchasing a good or service, which cannot be avoided.
Excessive fees
Fees that are unreasonably high or disproportionate to the cost of the good or service provided, as determined by factors like reasonableness and the reason for the charge.
Deceptive fees
Fees that mislead consumers or are presented in a way that hides the true cost of a good or service.
Speculative ticketing
The practice of selling tickets for an event that the seller does not yet physically possess at the time of the sale, with the expectation of acquiring them later.
Parens patriae
A legal concept allowing a state's attorney general to take legal action on behalf of its citizens, especially to protect those who cannot protect themselves.
Federal Trade Commission (FTC)
ACTION TIMELINE
2 EVENTS
DEC 4, 25
Introduced in House
INTROREFERRAL
DEC 4, 25
Referred to the Committee on Energy and Commerce, and in addition to the Committee on Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
