WASHINGTON, May 12, 2025 — The Federal Trade Commission (FTC) has published Frequently Asked Questions (FAQs) to guide consumers and businesses on its Rule on Unfair or Deceptive Fees, effective today. The rule targets deceptive pricing practices in the live-event ticketing and short-term lodging industries, aiming to protect consumers and ensure fair competition.
The FTC’s rule prohibits tactics like bait-and-switch pricing, where businesses hide fees to mislead customers about total costs. To promote transparency, it mandates upfront disclosure of total prices, including mandatory fees. The initiative aligns with President Trump’s Executive Order on Combating Unfair Practices in the Live Entertainment Market, emphasizing transparent pricing throughout ticket-purchasing, including secondary markets.
The FAQs clarify the rule’s scope and requirements. Covered businesses include those in live-event ticketing, such as concerts or sports events, and short-term lodging, like hotels or vacation rentals. The rule requires that all mandatory fees—such as service or resort fees—be included in the advertised total price. Optional add-on services, like parking or meal plans, may be excluded, but must be disclosed.
Businesses retain flexibility, as the rule does not ban specific fees or pricing strategies. Instead, it demands that pricing information be presented “clearly and conspicuously” to avoid misrepresentation. The FAQs provide examples of violations, such as omitting mandatory fees in advertised prices or burying them in fine print, which could mislead consumers.
The rule aims to curb practices that harm consumers and disadvantage businesses, prioritizing transparent pricing. For instance, hidden ticket fees can inflate costs unexpectedly, while unclear lodging prices may confuse travelers. By enforcing upfront pricing, the FTC seeks to foster trust and level the playing field for compliant businesses.
The FAQs also serve as a small entity compliance guide under the Small Business Regulatory Enforcement Fairness Act. They reflect the FTC staff’s interpretation of the rule’s requirements, offering practical guidance for compliance. Topics include how businesses can ensure disclosures are prominent and examples of pricing misrepresentations to avoid.
The FTC developed the rule in response to widespread complaints about deceptive pricing. Consumers often face surprise fees at checkout, undermining their ability to compare prices effectively. The rule addresses these concerns by requiring businesses to disclose the full cost early in purchasing, benefiting both consumers and ethical companies.
The rule’s implementation marks a significant step toward transparency in industries known for complex pricing structures. It applies to primary and secondary ticketing markets, ensuring platform consistency. For lodging, it covers short-term stays but excludes long-term rentals or timeshares.
Businesses are encouraged to review the FAQs to understand their obligations. The document outlines integrating total pricing into advertising, websites, and booking platforms. It also clarifies that disclosures must be unavoidable and easily understood, avoiding vague terms or hidden links.
The FTC’s efforts reflect broader federal priorities to combat unfair practices. The rule complements existing regulations while introducing specific requirements for high-impact industries. As the rule takes effect, the FTC will monitor compliance and address violations to protect consumers and maintain market fairness.
