On May 12, 2025, the Federal Trade Commission (FTC) enacted the Rule on Unfair or Deceptive Fees (the “Rule”)[1], mandating that businesses disclose all mandatory fees upfront in advertised prices. This initiative aims to enhance pricing transparency and protect consumers from unexpected charges during transactions.
Which Businesses are Impacted by the Rule?
The Rule covers any business that offers, displays, or advertises live-event tickets or short-term lodging, including third-party platforms, resellers, and travel agents. Coverage applies whether such offers, displays, or advertisements appear online, including through a mobile application, in physical locations, or through some other means. “Live-event tickets” are for concerts, sporting events, music, theater, and other live performances that audiences watch as they occur. In general, pre-recorded audio and visual performances and film screenings are not live events covered by the Rule.
The FTC’s Rule applies to short-term lodging such as hotel rooms, vacation rentals, home shares (e.g., Airbnb or VRBO), and discounted extended stays at hotels. It does not cover long-term rentals with landlord-tenant relationships, lease extensions, or corporate housing offered under long-term lease terms. The rule does not define a specific length of stay for what qualifies as “short-term”; rather, eligibility depends on the nature of the lodging arrangement.
Requirements of the Rule
Under the FTC’s new Rule, businesses advertising live-event tickets or short-term lodging must clearly disclose the total price upfront, including all mandatory fees and charges they can reasonably calculate at the time of the offer. This total price must account for any required goods or services associated with the transaction. However, certain charges—such as taxes, government-imposed fees, shipping, and optional add-ons—may be excluded from the initial total, provided they are disclosed to the consumer before payment is requested. The rule also requires that the total price be displayed more prominently than any other pricing information, aside from the final amount due at checkout.
Importantly, before requesting payment, businesses must provide a clear and conspicuous disclosure of any excluded charges, explaining their nature, purpose, amount, and the product or service they relate to. For example, if taxes or delivery fees are not included in the advertised price, the business must state exactly what those charges are and why they’re being applied. At the final payment stage, the total amount due—including any previously excluded charges—must be displayed at least as prominently as the initially disclosed total price. Additionally, businesses are prohibited from misrepresenting fees; they must be truthful and specific about what fees cover, avoiding vague or misleading terms like “convenience,” “service,” or “processing” fees.
Consumer Impact
The FTC estimates that this Rule will save consumers approximately 53 million hours annually that were previously spent deciphering hidden fees. By promoting transparent pricing, the rule facilitates easier comparison shopping and helps consumers make informed financial decisions.
Enforcement and Compliance
Businesses found in violation of the rule may face civil penalties and be required to provide refunds to affected consumers. The FTC encourages consumers to report any instances of non-compliance through their official channels. This regulation is part of a broader federal effort to eliminate “junk fees” across various sectors, including banking and airlines, aiming to foster fair competition and protect consumer interests.
[1] 16 CFR Part 464; https://www.federalregister.gov/documents/2025/01/10/2024-30293/trade-regulation-rule-on-unfair-or-deceptive-fees
