The Federal Trade Commission’s new rule of revealing “spams” in short -term accommodation and life event events has only been around for three days, but there has already been confusion.
In December, companies were warned by the changes that came into force on Monday. The new rule on injustice or misleading fees orders prominent complete disclosure of total pricing and prohibits the bet-and-switch tactics that draw consumers just to handle unexpected fees that raise the total price.
To be clear, the new FTC rule does not eliminate so-called spam. It only requires that companies clearly show them in all advertising and on websites.
“Companies must disclose fees or fees for compulsory associated goods or services at the total price,” says the FTC explanation on its website. “Fees or fees are mandatory if they relate to a good or service necessary to make the underlying good or service suitable for its intended purpose; or a necessary purchase when people buy the underlying good or service.”
Use of resort fees
In southern Nevada, the largest application of the rule for revealing extradition fees that are charged and down on the strip and in central Las Vegas applies.
Resort fees can add up to $ 60 per night to the cost of a hotel stay. Resorts are not required to disclose taxes or other government fees, shipping fees and fees for optional goods or services that people can choose to buy as part of the same transaction.
For this reason, some websites do not include the cost of parking – although it is often included at no cost to hotel guests.
Many of the websites selling hotel rooms at Las Vegas Resorts followed immediately.
Reviews of websites used by Caesars Entertainment, Wynn Resorts Ltd. And Golden Nugget Properties showed room prices to prominently show the total price and the amount for the resort fee.
Other travel sites, including vegas.com, hotels.com, expedia.com and trivago.com, seem to be fulfilling. Some of these websites also include the cost of VAT for the transaction and refer the readers to detailed property descriptions to learn about parking fees.
MGM criticized
A Las Vegas company that has received criticism online for its presentation is MGM Resorts International, which has 12 gaming and nongaming hotels on the strip.
From his X -account, User @Jordan02017, who goes past Will, said that he thinks MGM has not followed the new rule.
“When looking at room prices, now that the new law is in force, @caesarspalace follows the law and includes all taxes and fees. @MGMGrand is obviously not fulfilling the new law,” he wrote Tuesday.
MGM and other Las Vegas Resort operators show calendars showing room prices at the day. (FTC says it is permissible to offer dynamic pricing as long as the pricing information is not misleading.) But MGM’s calendar shows the room course and not the total cost, with a banknote that refers to the resort fee.
A representative of MGM said that the company thinks it meets because when a consumer clicks on a date to book a room a box that reveals all the details about the room course, the resort and the total cost.
Resorts World Las Vegas and Fontainebleau Las Vegas have similar calendar screens only with room prices and not a total cost on their respective websites.
What if a company does not follow the rule? FTC urges consumers to make a complaint.
“Companies that violate all FTC trading rule – including this – can be ordered to bring their practice in compliance, repay money to consumers and pay civil penalties,” says FTC on its website.
The agency proposes that consumers report possible violations to their dedicated fraud site, Reportfraud.ftc.gov.
While FTC encourages the public to look at possible violations, some consumer advocates are skeptical that the agency will be able to keep up with complaints.
Since the regulation reports in December, the Trump administration has driven to eliminate almost 90 percent of the consumer’s financial safety agency personnel. Democratic commissioners Alvaro Bedoya and Rebecca Kelly Slaughter were fired in March.
The measures are challenged in the US court system.
This is a developing story. Come back for updates.
Contact Richard N. Velotta at rvelotta@ theplayerlounge.com or 702-477-3893. Follow @rickvelotta at X.
“Clearly and tangible”
The Federal Trade Commission says that the revelations of the pricing of live event tickets and short-term accommodation under the new rule on injustice or misleading fees must be presented “clearly and evidently.”
What does it mean exactly?
According to FTC, a “clear and eye -catching” revealing is easy for people to understand and difficult for them to miss. The rule does not require specific fonts or type sizes, but states that all information must be made in the same way as the offer, show or AD. In other words, if an advertisement is visual, the disclosure must be visual. If the ad is audible, the disclosure must be audible. If ads are both visual and audible – for example, a TV ad – the disclosure must be presented both visually and audible at the same time.
