MGM singled out
MGM Resorts International caught some negative press in Las Vegas this week regarding The Federal Trade Commission’s new rule about disclosing “junk fees.”
Just four days old, the FTC’s fresh mandate on short-term lodging and live-event ticketing pricing has already caused consternation among resort owners, nowhere more so than on the Las Vegas Strip and in downtown Vegas, where the biggest impact of the new rule means disclosure of much-hated resort fees charged by resorts.
unexpected charges that inflate the total price
The Feds Rule on Unfair or Deceptive Fees demands prominent and complete disclosure of total pricing. It also bans bait-and-switch marketing that lures customers into the purchase only to apply unexpected charges that inflate the total price.
According to the Las Vegas Review-Journal, while many of the hotel room-selling resorts in the US gambling capital complied immediately, MGM was accused of not playing ball.
New rule shuffle
The local publication cited an X user who stated while Caesars Palace room rates now include all fees and taxes, MGM Grand “is clearly not complying with the new law.”
While MGM reportedly did not comment on the accusation, it pledged its commitment to following the law. The LVR-J cited an MGM representative stating the resort believes it is, however, compliant. MGM said this was down to an online pop-up function during purchase “disclosing all the details of the room rate, the resort fee and the total cost.”
the feds haven’t actually banned them, only ruled they must be transparent
While resort fees can lump up to $60 per night to a room, the feds haven’t actually banned them, only ruled they must be transparent in the marketing offer. Nevertheless, the fact some content creators are pushing the myth that the FTC has banned resort fees outright, is causing the Vegas resort industry a major headache.
Vegas-based digital content creator Jennifer Gay stated that these myths or in marketing terms “clickbait is causing a lot of confusion” among visitors to Vegas.
Much ado about nothing?
Gay took to X with an explanation of the misleading clickbait circulating, while drawing attention to the fact Vegas rooms are “typically cheaper than most hotels in tourism destinations.”
“If you’re brave enough, Strat is $2 tonight. Plus resort fee of course,” the content creator teased.
According to reports, many online sites reviewed selling Vegas rooms have “complied immediately.” Among the resorts’ websites, those run by Caesars, Wynn Resorts, and Golden Nugget are now reportedly compliant both with total price and resort fee displayed. The likes of expedia.com and trivago.com also appear to be playing ball.
