MGM Draws Criticism Amid Vegas Resorts’ Scramble to Comply with FTC Junk Fee Rule
MGM Resorts International is facing public scrutiny in Las Vegas following the introduction of a new Federal Trade Commission (FTC) rule aimed at increasing transparency around so-called “junk fees.”
The new FTC regulation, effective for less than a week, targets hidden charges in short-term lodging and event ticketing. In particular, the focus has landed on resort fees—extra costs often tacked onto nightly rates—that are prevalent on the Las Vegas Strip and in downtown resorts.
The FTC’s “Rule on Unfair or Deceptive Fees” requires businesses to prominently disclose the full cost to consumers, banning the practice of using misleading base prices only to surprise customers with hidden charges later in the booking process.
While several Las Vegas resorts quickly updated their pricing displays to reflect total costs—including previously veiled resort fees—MGM was called out for not appearing to comply. A report from the Las Vegas Review-Journal highlighted a social media user’s observation that while Caesars Palace had adjusted its pricing to include taxes and fees, MGM Grand had not.
MGM has not issued a direct response to the criticism, but a company spokesperson stated that the resort believes it is in full compliance. The company cited a pop-up during the booking process that outlines room rates, resort fees, and the total cost as evidence of their adherence to the new rule.
It’s important to note that the FTC rule does not prohibit resort fees altogether—it simply requires that all charges be clearly disclosed before purchase. Despite this, confusion has arisen, with some online content creators falsely suggesting that resort fees have been banned entirely.
This misinformation is complicating matters for resort operators. Las Vegas-based digital content creator Jennifer Gay took to social media to correct the misunderstanding, highlighting that while some guests are misled by sensational headlines, Vegas hotel pricing remains competitive—even with resort fees included.
“Vegas rooms are still cheaper than those in many tourist destinations,” Gay noted, pointing to deals such as a $2 room at The Strat, before adding that the resort fee still applies.
Most major travel platforms and resort websites appear to be adapting swiftly. Properties operated by Caesars, Wynn Resorts, and Golden Nugget have updated their pricing structures in accordance with the FTC’s guidelines. Booking platforms like Expedia and Trivago are also reportedly showing total costs upfront, helping to reduce confusion for travelers.
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