The commission stated that the goal of the new bipartisan rule, which is called the Junk Fees Rule, is to eliminate "bait-and-switch" pricing. Companies "in the live-event ticketing and short-term lodging industries" are the ones that offer a cheap price but then put on extra fees. Casino resorts that collect resort fees are the intended target here for the gaming industry.

The new rule does not prohibit such fees. Instead, resorts must "clearly and conspicuously disclose the true total price inclusive of all mandatory fees" for any accommodation booked for a shorter period of time. In addition, the overall cost of the room must be shown "more prominently than most other pricing information."

In conclusion, resorts that do not include fees in their stated pricing have a responsibility to "clearly and conspicuously disclose the nature, purpose, identity and amount of those fees" prior to payment being consented to. The FTC argues that customers will spend less time looking for sales because of the restriction, which is essentially a time saver. The panel stated that Americans will save an estimated 53 million hours per year by comparing prices.

"The FTC's rule will put an end to junk fees around live event tickets, hotels and vacation rentals, saving Americans billions of dollars and millions of hours in wasted time," stated FTC chair Lina Khan. "It is my sincere hope that law enforcement will maintain their vigilance in their fight against these illegal fees. Moving forward, I believe that state and federal lawmakers should capitalise on this victory by passing sweeping legislation to outlaw these unfair and misleading junk fees."

The culmination of Biden's junk-fee fight is the rule change.
One of Biden's central campaign promises was to outlaw "junk fees" whenever possible. In 2022, federal investigators initially started looking at a wide range of businesses, such as hotels, ticketing platforms, airlines, credit card companies, and more.

Following that, in October of last year, the FTC released a first-draft proposal of the new regulation after receiving over 12,000 comments. Following that, the commission received sixty thousand more comments before yesterday's release of the final version. After 120 days after being published in the Federal Register, the regulation will formally become effective. This suggests that its implementation might begin as soon as April.

"We all know the experience of encountering a hidden fee at the very last stage of check out—these junk fees sneak onto your bill and companies end up making you pay more because they can," spoke President Biden. "When added up, those fees take actual cash out of Americans' purses... The efforts to reduce prices and outlaw junk fees, which end up saving hundreds of dollars annually for many families, are the foundation of today's statement.

Did it truly have to be done?
The departing administration may be praising the regulation change, but how effective it actually is is another matter entirely. It would have been a tremendous game-changer if the fees had gone away. In order to pay for things like Wi-Fi, shuttles, fitness centres, pools, and more, properties implement such levies. As a result, businesses have pushed back, claiming these costs are meaningless "junk" and that customers are already given enough information about all expenses before they pay.

As is the case with most upscale establishments in the United States, resort fees are practically everywhere on the Las Vegas Strip. Two times this year, in January and again this month, MGM Resorts has increased the fees for its Las Vegas resorts. Resort fees for MGM resorts on the Strip range from $45 to $55 per night.

Yesterday, we reached out to the Nevada Resort Association and the American Gaming Association, but neither organisation returned our calls for comment. The second group has maintained that the state's hotels are already transparent about these costs. In an earlier letter to the FTC, AGA president and CEO Bill Miller lobbied against the regulation change.

"Our customers will get more than just a well-appointed room," Miller remarked in February 2023 regarding resort costs. "Resort fees cover the cost of these additional amenities and services, which are valuable in and of themselves and should not be seen as "junk" because they bring in revenue for the resort."