No More Surprise Fees: Junk Fee Prevention Act Mandates Upfront Pricing for Tickets, Hotels, and Bans Telecom Early Termination Fees

If you’ve ever hit the ‘purchase’ button on a concert ticket or hotel room only to watch the price jump 30% thanks to ‘service fees’ and ‘resort fees,’ this bill is for you. The Junk Fee Prevention Act is a broad piece of legislation designed to mandate price transparency across several industries, ensuring the price you see advertised is the price you actually pay. It hits three major areas: event ticketing and short-term lodging, communications services (like your cell and internet provider), and airlines.

The All-In Price Rule: Tickets and Hotels

For event tickets and short-term lodging (hotels, motels, vacation rentals under six months), the core of the law is simple: total price disclosure, always. Section 2 requires covered entities—which include ticket sellers, booking platforms, and hotels—to clearly and conspicuously display the total price, including all mandatory fees and government charges, in every advertisement and when the price is first shown to the consumer. Think of it as the 'no hidden fees' rule. If you see a concert ticket advertised for $100, the final mandatory price, including processing fees, must be $100.

This section also prohibits mandatory fees that are excessive or deceptive. For example, a deceptive fee is one misrepresented as optional when it’s actually required. The FTC gets the authority here to issue rules and enforce these provisions, and they are tasked with figuring out if a fee is 'excessive' by looking at whether it’s reasonable and proportional to the cost of the service. This is a big win for consumers, but it’s worth noting the FTC has a lot of wiggle room in defining what ‘excessive’ means, which could lead to some legal back-and-forth down the line.

Cutting the Cord: Freedom from Telecom Fees

If you have ever tried to switch internet providers mid-contract, you know the pain of the Early Termination Fee (ETF). Section 3 directly addresses this by prohibiting communications service providers (broadband, mobile, cable TV) from charging consumers a fee for terminating service before the contract ends. If you cancel, they must give you a prorated credit for the remaining days in the billing cycle. This means if you find a better deal or move, you can switch without being penalized with a hefty ETF, making providers compete harder for your business.

This section also tackles the dreaded promotional price cliff. If you sign up for a service with an introductory rate, the provider must notify you clearly—at least 60 days and again 30 days before the promotion ends—of the regular, higher price that will kick in. No more surprise bill hikes after the first year. The FCC is also directed to start a rulemaking process to consider requiring disclosure of or even prohibiting other mandatory fees that consumers assume are included in the advertised price.

Airline Fees: Transparency in the Sky

While the bill doesn't ban airline baggage fees or seat selection fees, Section 4 forces airlines to be transparent about the money they make from them. The Department of Transportation (DOT) must require U.S. and foreign airlines operating here to file quarterly reports detailing their revenue from ancillary fees. This data must be broken down by service—checked bags, carry-ons, reservation changes, and seat selection—and by class of service (e.g., economy vs. business).

The DOT will then compile and publish this information. While this doesn't stop the fees, it gives the public and regulators a clear, detailed look at exactly how much money airlines are pulling in from these charges. For the average traveler, this means better data on who is charging what, potentially leading to more competitive pricing or future regulation based on hard numbers.