Categories: Financial Scams

FTC Rule on Unfair or Deceptive Fees to Take Effect on May 12, 2025

Staff of the Federal Trade Commission published Frequently Asked Questions (FAQs) designed to provide consumers and businesses with information regarding the agency’s Rule on Unfair or Deceptive Fees, which takes effect on May 12, 2025.

The Rule prohibits bait-and-switch pricing and other tactics used to hide total prices and mislead people about fees in the live-event ticketing and short-term lodging industries. These unfair and deceptive pricing practices can harm consumers and undercut businesses trying to compete fairly on price. The Rule also furthers President Trump’s Executive Order on Combating Unfair Practices in the Live Entertainment Market by ensuring price transparency at all stages of the live-event ticket-purchase process, including the secondary ticketing market.  

The Final Rule preserves flexibility for businesses by not prohibiting any type or amount of fee or specific pricing strategies. Rather, it requires that businesses that advertise prices tell consumers the whole truth up-front about total prices and fees.

The FAQs provide guidance on such topics as:

  • What businesses are covered by the Rule and the Rule’s basic requirements;
  • Examples of live-ticketing events and short-term lodging covered by the Rule;
  • The mandatory fees or charges that must be included in the total price;
  • Which fees or charges can be excluded from the total price;
  • A description of optional add-on goods or services and how the Rule applies to these charges;
  • How business can disclose pricing information “clearly and conspicuously”; and
  • Examples of misrepresentations that may violate the Rule.

The document serves as the small entity compliance guide under the Small Business Regulatory Enforcement Fairness Act and represents the staff’s view of the Rule’s requirements.


Source link
ScamBuzz

Recent Posts

Joe Rogan Hits New Record as Spotify Reveals Most Popular Podcasts – The Daily Beast

Joe Rogan Hits New Record as Spotify Reveals Most Popular Podcasts  The Daily Beast Source link

6 hours ago

US, UK top Lagos Detty December arrivals as diaspora spending hits N396bn – Businessday NG

US, UK top Lagos Detty December arrivals as diaspora spending hits N396bn  Businessday NG Source link

7 hours ago

Splatoon 3 North American League 2026 – Season Highlights – YouTube

Splatoon 3 North American League 2026 – Season Highlights  YouTube Source link

9 hours ago

Highlights from Lajna Imaillah Canada’s Ijtema 2026 – Al Hakam

Highlights from Lajna Imaillah Canada’s Ijtema 2026  Al Hakam Source link

10 hours ago

Scammers are getting smarter about where they target you – Malwarebytes

Scammers are getting smarter about where they target you  Malwarebytes Source link

14 hours ago