New US Law Bans Hidden Fees on Hotel and Concert Bookings: Here’s What You Need to Know

In a major win for transparency and consumer rights, the United States has officially outlawed the practice of displaying misleading prices for hotel stays and live event tickets. As of this week, companies in these sectors must include all mandatory fees in the first price a customer sees. That means no more getting deep into the checkout process only to be surprised by a pile of “convenience,” “resort,” or “service” fees.

This move is part of a sweeping policy change introduced by the Federal Trade Commission (FTC), aimed at eliminating deceptive pricing tactics that have long plagued online booking platforms. Whether you’re reserving a hotel room or snagging tickets to a concert, the full price must now be displayed upfront — plain and simple.

Here’s a breakdown of what’s changing and why it matters:

Hidden fees are now illegal: Companies can no longer lure users with low base prices only to add substantial fees later in the checkout process.
FTC’s stance: This change stems from a rule announced by the FTC back in December. The agency provided a 120-day grace period for platforms to adjust their pricing systems.
Effective immediately: The law officially went into effect this week, making it illegal to hide any mandatory fees from the advertised price.
Improved transparency: By requiring full price disclosure, the rule empowers consumers to make clearer price comparisons and more informed decisions.
Impacts hotels and live events: This law directly affects hotels, vacation rentals, and ticketing platforms for concerts, sports events, and theater shows.
Ticketmaster’s reaction: Interestingly, Ticketmaster, historically one of the most criticized platforms for hidden fees, is now publicly patting itself on the back for simply following the law.
Example from Ticketmaster: The company now displays a ticket priced at \$90.50 instead of showing \$80 upfront and tacking on a \$10.50 service fee later.
FTC’s intent: Beyond protecting consumers, the regulation aims to level the playing field for businesses that have always advertised honest, all-in pricing.
No ban on fees, just dishonesty: Companies can still charge booking or service fees, but they must be reflected in the initial price shown to customers.
Consumer savings: Transparent pricing is expected to help customers save money and reduce impulse purchases driven by seemingly low prices that skyrocket at checkout.
Comparison shopping just got easier: With real prices shown up front, platforms can no longer manipulate users into clicking on deceptively cheap options.
Legal implications: Violators of this rule could face significant fines or sanctions from the FTC.
Big tech compliance: Major platforms are now rushing to update their systems to remain legally compliant, even if some are spinning it as a customer-first initiative.
Industry-wide shift: This regulation marks one of the most significant shifts in U.S. e-commerce pricing norms in years.
Backlash and irony: Companies like Ticketmaster have been dragged for years over misleading pricing — their sudden enthusiasm for transparency rings hollow for many.

Corporate spin alert:

Marketing versus reality: While marketing teams portray it as a new initiative for customer benefit, the reality is they’re simply following federal law.
What consumers should look for: Be wary of platforms that still appear to hide fees; they could be operating in violation of FTC rules.
Role of watchdogs: Consumer rights groups are expected to monitor compliance closely and report violations.
Public response: Early reactions on social media indicate widespread approval of the change, with many users sharing stories of past booking frustrations.
FTC’s enforcement will be key: Without strict enforcement, some companies might try to skirt the new rule.
Affiliate disclosures remain: Sites with product recommendations (including this one) will still use affiliate links, which is a separate transparency issue.

What Undercode Say:

This new regulation signals a much-needed reckoning in digital commerce, especially in the booking and ticketing industries that have been able to game consumer behavior for over a decade. The “bait-and-switch” tactic — luring consumers with a low base price and shocking them with fees at the end — was not just unethical, it was strategic psychological manipulation. The FTC’s intervention was long overdue.

What makes this ruling particularly interesting is not just its consumer benefit, but its broader implications on platform architecture and UX design. Many ticketing and booking apps were built around these deceptive workflows. Entire checkout flows were optimized for conversion metrics that depended on displaying low prices upfront and revealing the full cost only when the user was too invested to back out.

This also changes how platforms must compete. Honest businesses that were previously disadvantaged now have a fairer shot. Companies that refused to play dirty were losing customers to platforms that relied on price obfuscation. Now, comparison shopping becomes more realistic, restoring integrity to price competition.

The public reaction to Ticketmaster’s behavior is telling. Their attempt to spin basic legal compliance into a brand initiative reflects just how out of touch many large corporations are with public sentiment. Consumers are not naïve — they understand that this shift is not about putting fans first, it’s about finally getting called out for anti-consumer practices.

This also raises the question: what other sectors might be next? Travel insurance, rental cars, food delivery apps — many of these rely on similar hidden fee structures. The FTC’s success here might encourage further regulatory crackdowns across digital commerce sectors.

Finally, from a technical standpoint, the change forces a refresh of pricing APIs and price presentation logic across all platforms. While it might sound simple, integrating fee aggregation and rendering the full price upfront in dynamic listings (especially on high-volume platforms) is no small feat. This is not