A brand new U.S. rule that calls for resort and temporary accommodation corporations to expose so-called “junk fees” begins Monday.
Announced by means of the Federal Trade Commission in December, the rule of thumb takes direct purpose on the extensively loathed fees, which will seem as “resort,” “destination” or “hospitality service” charges and purport to grant perks that vacationers both do not want or already be expecting to obtain.
These come with “premium” web provider and get right of entry to to a resort gymnasium.
The rule, which additionally applies to reside tournament ticketing corporations, used to be designed to curtail a convention that allowed companies to rate extra “without looking like you’re raising prices,” Cathy Mansfield from the Case Western Reserve Law School advised CNBC in December.
The professor, who makes a speciality of shopper and industrial legislation, had one caveat: “I really hope the Trump administration doesn’t cut the enforcement staff at the FTC and the CFPB.”
But for the reason that rule used to be introduced, the Trump management has driven to do away with just about 90% of the Consumer Financial Protection Bureau’s group of workers and fired two FTC commissioners — movements that are being challenged within the U.S. court docket machine.
As a consequence, Mansfield mentioned she now believes the brand new rule is much less most likely to give protection to customers.
“With the Consumer Financial Protection Bureau already incapacitated by the Trump administration, there probably won’t be new protections for consumers — a rollback of existing protections where possible, and absolutely no enforcement of rules. This means no protection at all for consumers,” she mentioned.
In reaction, Chris Mufarrige, the director of the FTC’s Bureau of Consumer Protection, advised CNBC that the company “is working hard to protect consumers and will continue to pursue enforcement actions against companies that violate the law, including through the new deceptive fee rule.”
The Trump Administration additionally centered charges within the reside leisure business via an government order on March 31 that directed the FTC to make sure worth transparency “at all stages of the ticket-purchase process.”
The CFPB didn’t respond to CNBC’s request for remark.
Disclosure, however now not removal, of charges
Laurent Bacinski, a French citizen, used to be hit by means of undisclosed junk charges right through a go back and forth to New York City.
He pre-paid for his go back and forth via a go back and forth app however used to be nonetheless charged a $500 deposit by means of his resort at check-in, from which the resort deducted taxes and a nightly “destination fee.” These charges equipped high-speed web, reductions on sightseeing excursions and a credit score on the resort mini-mart.
“The destination fee is forced sale of services I don’t need,” he advised CNBC Travel.
Disclosure of those charges is the crux of the FTC’s rule, which doesn’t purpose to do away with them, however slightly to make sure vacationers know they exist.
“The Junk Fees rule is rooted in a simple but powerful principle: transparency,” mentioned Mansfield. “When consumers can see the full price up front — whether they’re booking a hotel, buying concert tickets or paying a service fee — they’re in a better position to make informed decisions and avoid being misled.”
This transparency has already begun, mentioned Lauren Wolfe, recommend for Travelers United, a non-profit group that has sued Hyatt, Hilton, Sonesta and Accor over the problem of lodge charges.
“We have seen a lot more voluntary compliance since the rule was announced in December,” she mentioned.
Airbnb introduced in April that it all started showing cleansing and repair charges prematurely for purchasers international.
Wolfe referenced every other invoice, the Hotel Fees Transparency Act of 2025, which cleared the U.S. House of Representatives in April, and is now set to move earlier than the Senate.
“The combo of the FTC rule, plus a bill that has bipartisan support — and looks like it will pass — in Congress shows that ending hidden hotel resort fees is one issue today that unites all Americans,” she mentioned.
If you might be charged a ‘junk rate’
CNBC Travel analyzed 10 reserving internet sites for a two-night keep at Balboa Bay Resort, a resort in Newport Beach, California that fees a $40 day-to-day lodge rate, as said at the resort’s site.
Of the 10 websites, seven disclosed the price in more than a few tactics — both as a “destination fee,” “property fee” or “property service charge” — and 3 didn’t.
If vacationers come upon a resort or temporary condominium charging undisclosed charges, Mansfield recommends submitting a grievance with the FTC. Penalties for violating the brand new rule can exceed $50,000.
“The FTC has a really easy-to-use online complaint system, and they tally complaints that help them see what’s happening the market,” she mentioned.
She additionally recommended the usage of the CFPB’s on-line grievance machine, she mentioned. “They actually forward the complaint to the company … that will sometimes get things resolved because companies don’t want to be in the crosshairs of the CFPB,” she mentioned.
Mansfield mentioned vacationers too can touch the patron fraud department in their state Attorney General’s workplace. “I would say complain to both federal and state” government, she mentioned.
If all else fails, vacationers too can believe airing their grievance on social media.
“Sometimes with companies, the squeaky wheel gets the grease.”