MGM in the Hot Seat over Transparency
Vegas Resorts Face Unfavorable Media Attention Due to FTC's Crackdown on 'Junk Fees' Enforced by MGM
The Federal Trade Commission's (FTC) latest rule about disclosing hidden fees has created a stir in Sin City, with a particular focus on MGM Resorts International. The rule targets short-term lodging and live-event ticketing pricing, and MGM seems to be in the crosshairs.
The FTC's mandate demands clear and comprehensive pricing, eliminating misleading "bait-and-switch" tactics that conceal extra charges until after purchase. On the Las Vegas Strip and downtown, this means readily disclosing pesky resort fees charged by hotels.
Surprise costs that drive up the final bill
The FTC's Rule on Deceptive or Unfair Fees mandates straightforward disclosure of the total cost. It also prohibits underhanded marketing practices that entice customers into a purchase, only to reveal unexpected costs that inflate the final bill.
Initial reports suggest many Las Vegas hotel property owners complied swiftly, but MGM appears reluctant. The Las Vegas Review-Journal cited a user who pointed out while Caesars Palace now openly displays all fees and taxes, MGM Grand seems to be lagging behind.
While MGM didn't offer a comment on the allegation, they maintained their commitment to compliance. According to MGM's spokesperson, the resort believes it is compliant due to an online pop-up during the booking process, which details the room rate, resort fee, and total price.
Although resort fees may amount to around $60 per night, the FTC hasn't actually banned them; they've simply insisted on transparency in advertising and pricing. Unfortunately, widespread myths claiming the FTC has abolished resort fees entirely are causing headaches for the Vegas resort industry.
Digital content creator Jennifer Gay voiced her concerns over these misleading claims, stating they create significant confusion among tourists visiting Vegas. In an effort to clear up the misinformation, Gay shared insights about the affordable prices of Vegas accommodations.
"If you've got the courage, the Strat is just $2 tonight, with the resort fee added, of course," she joked.
Initial reports indicate most websites dealing in Vegas room sales have complied promptly. Among popular resorts, Caesars, Wynn Resorts, and Golden Nugget have updated their pricing, showing both total prices and resort fees. Major players like expedia.com and trivago.com also seem to be onboard.
- In the casino culture of Las Vegas, MGM Resorts International finds itself under scrutiny due to the latest FTC rule, which mandates transparency about hidden fees, such as casino games' extra charges and resort fees that may apply in a casino-and-gambling environment like MGM Grand.
- Despite the new FTC Rule on Deceptive or Unfair Fees, some popular Las Vegas resorts, like MGM Grand, have been slower to comply with the demand for clear disclosure of all fees related to casino games, accommodations, and other experiences that contribute to the casino-games variety offered in Sin City.
