FTC Introduces New Rule to Enhance Pricing Transparency in Las Vegas

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Las Vegas resorts responding to new pricing transparency regulations.

News Summary

The Federal Trade Commission has implemented a new rule requiring businesses in Las Vegas to disclose ‘junk fees’ associated with short-term lodging and live-event ticketing, aimed at ensuring consumers are aware of total costs before booking. Effective from May 2025, this initiative affects major operators like Caesars Entertainment and MGM Resorts. Despite compliance from various resorts, MGM has faced scrutiny for not fully adhering to the transparency guidelines. The rule is expected to save consumers an estimated $11 billion over the next decade through improved pricing clarity.

Las Vegas – A new rule implemented by the Federal Trade Commission (FTC) aims to enhance pricing transparency by mandating the disclosure of what are commonly known as “junk fees” associated with short-term lodging and live-event ticketing. Effective from May 2025, the rule is designed to protect consumers by ensuring they know the total costs involved before making a booking or purchase.

The Rule on Unfair or Deceptive Fees, introduced in December 2024, requires businesses to disclose all mandatory ancillary charges alongside advertised prices on their websites. This includes significant expenses such as resort fees, which, on average, can add approximately $60 per night to hotel costs. However, it is important to note that optional fees and taxes do not fall under this disclosure requirement.

Numerous Las Vegas resorts, including major operators like Caesars Entertainment, Wynn Resorts, and Golden Nugget, have swiftly complied with the new regulations by incorporating total prices alongside resort fees on their websites. Travel booking platforms, including vegas.com, hotels.com, expedia.com, and trivago.com, also appear to be aligning with these compliance measures.

In contrast, MGM Resorts International, which operates twelve hotels along the Las Vegas Strip, has faced scrutiny for potentially not adhering to the transparency guidelines. Criticism arose from users on social media who noted that MGM’s booking calendars displayed only the room rates, accompanied by a note indicating the presence of a resort fee, rather than presenting the total price prominently. MGM’s representatives clarified that detailed fee information would be disclosed in a pop-up once a user selects a specific booking date.

Other resorts, such as Resorts World Las Vegas and Fontainebleau Las Vegas, are also implementing pricing models that may not fully comply with the new disclosure requirements. As the FTC encourages consumers to report businesses that fail to adhere to the new rules via their fraud website, violations could result in fines and the necessity for refunds to affected customers.

The FTC’s pricing disclosure requirements specify that all advertised costs be presented in a manner that is clear and conspicuous, making it essential for consumers to easily understand all charges associated with their booking. Despite the good intentions behind the rule, concerns have emerged regarding the FTC’s capacity to manage potential complaints given the agency’s ongoing personnel reductions.

In addition to new regulatory challenges, Las Vegas has also been facing legal issues, with recent lawsuits filed against local properties alleging health risks related to bedbug bites. This ongoing legal scrutiny compounds concerns over potential declines in hotel room tax revenues, leading boards to intensify their advertising efforts targeting domestic travelers.

The FTC’s bipartisan initiative is estimated to potentially save consumers $11 billion over the next decade in time and money by enhancing pricing transparency. Nevertheless, skepticism has been voiced concerning the complete enactment of the rule, with some critics indicating a possible backlash from the industry as well as unpredictable political dynamics that could impact its implementation.

As Las Vegas looks to navigate this new regulatory landscape, the focus remains on achieving compliance while safeguarding consumer interests. The hospitality industry, particularly in a tourist-centric city like Las Vegas, is at a critical juncture that requires careful balancing of profitability and adherence to emerging federal regulations.