In a 313-page decision, the FTC issued its final ruling on “junk fees,” titled the Trade Regulation Rule on Unfair or Deceptive Fees. This rule did not include the rental housing industry. Instead, it focused on prohibiting bait-and-switch pricing and other tactics that obscure total prices and hidden fees in the live ticketing and short-term lodging sectors.
The National Apartment Association (NAA), industry members, and other stakeholders worked diligently to distinguish the rental housing industry from the short-term lodging and live ticketing industries.
During a public comment period, 3,781 industry members expressed their concerns, asking the rental housing industry to be exempt from this rule. They explained that the landlord-tenant relationship is often a year-long commitment, starting with the application process, during which fees are disclosed upfront and throughout the entire leasing process. Unlike the hotel and ticketing industries, which typically involve a single transaction, the rental housing industry usually includes multiple transactions where fees and rental prices are disclosed at various stages.
Furthermore, they pointed out that the rental housing industry is already subject to extensive state and local regulations. This outcome demonstrates how collective advocacy efforts can effectively protect the industry. Though the rule did not include the rental housing industry for now, NAA and stakeholders are on alert for any future developments.
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