The US Federal Trade Commission's Rule on Unfair or Deceptive Fees, known as the FTC fees rule, takes effect today, 12 May 2025. Codified at 16 CFR Part 464, it bans bait-and-switch pricing and other tactics that hide or misrepresent total prices and fees for live-event tickets and short-term lodging, including in the secondary ticketing market, according to the FTC's announcement of 5 May.
FTC Fees Rule Takes Effect: All-In Pricing for Concert, Sports and Hotel Bookings
By The Corporate INTL Newsroom · 12 May 2025
The rule was announced in December 2024 and published in the Federal Register on 10 January 2025. The Commission says it also furthers the March 2025 Executive Order on Combating Unfair Practices in the Live Entertainment Market, which calls for price transparency at every stage of ticket purchasing.
What the rule requires
According to the FTC's staff compliance FAQs, any business that offers, displays or advertises a price for a covered product must disclose the total price up front, including all known mandatory charges such as resort or cleaning fees. Only three categories may be left out of that headline total: government charges, shipping and optional ancillary goods or services, and those must be disclosed before the customer is asked to pay. The total price must be shown more prominently than other pricing information, and the final amount to be paid must be at least as prominent as the total price.
Fee descriptions must be truthful. Staff guidance advises against vague labels such as "service fees" or "processing fees". The FTC fees rule does not ban any type or amount of fee, or any particular pricing strategy: it is a disclosure and misrepresentation rule.
Who is covered
The rule reaches concert and sports ticket sellers, venues, primary and resale platforms, hotels, holiday rental and home-sharing platforms and travel agents, whether they sell online, in an app or in person. Live events exclude most pre-recorded performances and film screenings, and long-term rental housing is outside scope. The rule protects business customers as well as individuals, so corporate hospitality and event bookings are covered too.
Enforcement
Breaches can lead to orders to comply, refunds to consumers and civil penalties. For promoters, rights holders, ticketing platforms and hotel groups selling to US customers, the immediate task is checking that every price display, from search results to checkout, leads with the all-in figure.
Sources
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