MGM Stands Out in Vegas Over "Junk Fees" Disclosure
MGM Faces Unfavorable Media Coverage amid Vegas Resorts Navigating FTC's Crackdown on 'Junk Fees'
MGM Resorts International has found itself under scrutiny in the glitzy city of Las Vegas, all thanks to the Federal Trade Commission's (FTC) new rule on disclosing hidden fees, commonly known as "junk fees."
The FTC's recent crackdown on shady pricing practices in short-term lodgings and live event ticketing has sent shockwaves through the resort industry, particularly along the Las Vegas Strip and in downtown Vegas. The new rule emphasizes the need for transparent pricing, especially when it comes to those despised resort fees charged by resorts.
These unforeseen charges can significantly inflate the overall price.
The FTC's new rule against Deceptive or Misleading Fees stipulates that total pricing must be prominently and completely disclosed. It also prohibits bait-and-switch tactics that trap customers with unexpected charges that bump up the final bill.
According to the Las Vegas Review-Journal, the vast majority of US hotel conglomerates followed the new guidelines without hesitation. However, MGM seems to be lagging behind.
A disgruntled user named X highlighted on the LVR-J that while Caesars Palace openly displays all fees and taxes, MGM Grand appears to be dragging its feet in compliance with the new rule.
Though MGM remained surprisingly silent on the allegation, they assured the public of their commitment to abiding by the law. An MGM representative stated that the resort believes it remains compliant due to an online pop-up function during transactions that reveals all details of the room rate, resort fee, and the final cost.
In reality, the FTC hasn't outright banned resort fees; they merely demand transparency in their marketing offers. But amidst the confusion engendered by misleading clickbait, some folks believe the FTC has banned resort fees completely, causing quite the headache for the Vegas resort industry.
Local digital content creator Jennifer Gay warned of the misleading clickbait doing the rounds, causing unnecessary confusion for Vegas-bound tourists.
Gay echoed her concerns on various channels, clarifying the trivial nature of these fees when compared to the room prices at most tourist destinations. She playfully hinted, "If you're bold enough, you can grab a room at the Strat for $2 tonight, plus the resort fee, of course!"
The dust seems to have settled as multiple online sites selling Vegas rooms have swiftly complied, while high-profile resort brands like Caesars, Wynn Resorts, and Golden Nugget now boast transparent pricing across their websites. Major travel platforms like expedia.com and trivago.com are also in compliance.
So, while MGM navigates the choppy waters of FTC compliance, the rest of the Vegas hospitality industry maintains its glittering sheen of transparency, ensuring guests have a clearer view of the real price they're paying for their Sin City experience.
Casinos in Las Vegas, such as those operated by MGM Resorts International, are now under scrutiny for their pricing transparency due to the Federal Trade Commission's (FTC) new rule on disclosing hidden fees, a practice commonly found in casino culture. Despite MGM's claims of compliance with the new rule, there have been allegations that they are lagging behind in fully disclosing their resort fees, contrasting the open disclosure of fees at casinos like Caesars Palace.
