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.