The Federal Trade Commission (FTC) has finalized a new rule requiring businesses to disclose total prices upfront, including any mandatory fees, marking a significant move to protect consumers from hidden charges. Announced on Tuesday, the rule mandates that the total price, inclusive of all fees, be prominently displayed whenever pricing is offered to consumers.

FTC Chair Lina Khan emphasized the consumer benefits of the new regulation, stating that it will save “billions of dollars and millions of hours in wasted time.” She added, “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.”

The rule doesn’t ban any specific fees but requires businesses to present the total cost of a product or service, including mandatory charges like service fees. Fees that are not included in the total price, such as shipping or taxes, must be clearly disclosed before consumers provide payment information.

The rule follows extensive feedback from consumers, many of whom expressed frustration over hidden fees, particularly in ticket sales. Ticketmaster, which has faced widespread criticism and is battling an antitrust lawsuit seeking to break up the company, expressed support for the rule. Its parent company, Live Nation, acknowledged the long-standing practice of adding fees to ticket prices and agreed that consumers need clear disclosures about true costs.

The rule was approved by a four-to-one vote among FTC commissioners. Andrew Ferguson, the lone dissenter and the agency’s incoming chair, argued that the FTC lacked the authority to enforce the regulation. “The Democratic majority’s four-year regulatory assault on American businesses has hindered economic growth and increased costs to the American consumer,” he wrote, citing his opposition to similar initiatives under Lina Khan’s leadership.

Khan’s tenure at the FTC has been marked by the passage of consumer and labor-friendly rules, including a ban on noncompete clauses and new regulations requiring companies to simplify subscription cancellations. Ferguson opposed both measures, which he said overstepped the FTC’s authority.

Consumer advocacy groups have praised the new rule as a victory for transparency, calling it a critical step in combating deceptive pricing practices. Khan encouraged state and federal policymakers to build on the FTC’s work by enacting legislation to address unfair and deceptive fees across the economy.

The rule, which directly addresses concerns raised by consumers, businesses, and lawmakers alike, is expected to bring clarity to pricing practices in sectors ranging from entertainment to travel. As enforcement begins, it will set a new standard for businesses and provide consumers with greater confidence in their purchasing decisions.