Bad news for vacation rental owners, hidden commissions banned in the U.S.

The recent ruling by the U.S. Federal Trade Commission (FTC) signals changes for how Americans will book their holidays in future. The organisation has banned hidden “junk fees” that have long plagued consumers in the short-term lodging market.

Under the new rule, vacation rental platforms like Airbnb and Vrbo must now display the total price upfront, including all applicable fees such as resort and service charges. Previously, these fees often appeared only at checkout, leading to frustration among customers who were blindsided by additional costs after making a booking decision.

“People deserve to know up-front what they’re being asked to pay — without worrying that they’ll later be saddled with mysterious fees that they haven’t budgeted for and can’t avoid,” sad FTC chief Lina Khan in a statement Tuesday.

The FTC estimates that this change could save Americans billions of dollars and millions of hours previously spent deciphering total costs before making purchases.

The new rule go into effect April 2025.

Will the ruling survive Trump’s presidency?

Andrew Ferguson, a Republican commissioner who opposed the rule, is expected to be appointed as the new FTC chair under Trump. Ferguson’s dissent was not based on the rule’s content but rather on the belief that the Biden administration should not implement significant regulations during a transition period.

Under the Congressional Review Act, lawmakers have the power to invalidate new regulations through appropriations language or direct votes. Given that Republicans control both arms of Congress, Congress, they may attempt to limit funding for the enforcement of this rule or propose legislation that undermines it.

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