The U.S. Federal Trade Commission (FTC) has passed a new "Junk Fees Rule" requiring hotels and casino resorts to include resort fees in their upfront room rates. This bipartisan rule aims to eliminate deceptive "bait-and-switch" pricing tactics in the hospitality industry.

Resort fees, which can reach up to $55 per night at premium Las Vegas properties like Bellagio and Mandalay Bay, have traditionally been excluded from advertised room rates. These mandatory charges, also known as destination, facility, or amenity fees, began in the 1970s to cover basic amenities but have evolved into a controversial pricing practice.

FTC Chair Lina Khan emphasized that consumers deserve transparency in pricing without hidden charges that impact their budgets. The new rule requires all hotels to incorporate unavoidable charges into their initial advertised rates within 120 days of implementation.

The regulation follows an extensive review process including over 70,000 public comments. While the rule doesn't ban resort fees outright, it mandates their inclusion in upfront pricing to prevent misleading advertising practices.

A practical example demonstrates the impact: A Luxor room currently advertised at $25 per night actually costs $72.34 after adding the mandatory $45 nightly resort fee. Under the new rule, hotels must display this total cost upfront, providing customers with clearer pricing information for better budget planning.

This change fulfills a key consumer protection initiative of the Biden administration and is expected to save Americans billions of dollars while reducing time spent decoding complex pricing structures.

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