Staff at the Federal Trade Commission (FTC) have released a set of Frequently Asked Questions (FAQs) to inform consumers and businesses about the new Rule on Unfair or Deceptive Fees, which will come into effect on May 12, 2025.
This rule aims to prohibit bait-and-switch pricing tactics and other methods that obscure total prices and mislead consumers about fees in the live-event ticketing and short-term lodging sectors. Such practices are deemed harmful to consumers and disadvantageous for businesses trying to compete fairly on price. Additionally, this rule supports President Trump's Executive Order on Combating Unfair Practices in the Live Entertainment Market by promoting price transparency throughout the live-event ticket purchase process, including secondary ticketing markets.
The Final Rule allows businesses flexibility by not restricting any type or amount of fee or specific pricing strategies. Instead, it mandates that businesses advertising prices must disclose the full truth about total prices and fees upfront.
The FAQs address several topics including:
- The types of businesses covered by the Rule and its basic requirements;
- Examples of live-ticketing events and short-term lodging affected by the Rule;
- Mandatory fees or charges that must be included in the total price;
- Fees or charges that may be excluded from the total price;
- Optional add-on goods or services and how they are impacted by the Rule;
- How businesses can disclose pricing information “clearly and conspicuously”;
- Examples of misrepresentations that might violate the Rule.
This document serves as a small entity compliance guide under the Small Business Regulatory Enforcement Fairness Act, reflecting staff interpretations of the Rule’s requirements.
The FTC is committed to promoting competition while protecting and educating consumers. The agency emphasizes it will never demand money, issue threats, instruct individuals to transfer money, or promise prizes. More information on consumer topics is available at consumer.ftc.gov. Reports of fraud, scams, and bad business practices can be made at ReportFraud.ftc.gov. To stay informed about FTC news and alerts, follow their social media channels, read consumer alerts and business blogs.
