Junk Fees Rule

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Booking Holdings Settles Texas Lawsuit Alleging It Obscured Mandatory Fees
PYMNTS.comยท 2025-08-19 19:58
Core Points - Texas Attorney General Ken Paxton secured a $9.5 million settlement with Booking Holdings to resolve allegations of deceptive "junk fee" practices [1][2] - The lawsuit claimed that Booking Holdings misrepresented room rates and obscured mandatory fees at checkout [2][6] - The settlement mandates Booking Holdings to disclose any additional fees upfront [3] Company Response - A spokesperson for Booking Holdings stated that the settlement does not imply any admission of wrongdoing and allows the company to avoid prolonged litigation [3][4] - The company emphasized its commitment to transparency and supporting a clear national standard for displaying total prices [5] Regulatory Context - The Federal Trade Commission (FTC) approved a Junk Fees Rule aimed at ensuring consumers are not surprised by additional fees when booking hotels or tickets [5] - The rule requires businesses to be upfront about prices but does not limit the types or amounts of fees [6]