Last week, the Federal Trade Commission (FTC) published a set of Frequently Asked Questions (FAQ) aimed at helping businesses and consumers understand the agency’s Rule on Unfair or Deceptive Fees, which takes effect on May 12, 2025. The new guidance signals the FTC’s continued focus on ensuring price transparency in industries where hidden fees have become common—and increasingly controversial.
The rule, which the commission approved in a 4-1 vote in December 2024, is designed to curb misleading fee practices, particularly in the live-event ticketing and short-term lodging sectors. The rule is also part of a broader effort to implement President Donald Trump’s Executive Order on Combating Unfair Practices in the Live Entertainment Market.
The newly released FAQ serves as a compliance resource for businesses and a transparency tool for consumers. Topics addressed include:
- Basic requirements of the rule
- Which businesses and transactions are covered by the rule
- What happens if a business violates the rule
- Discounts and promotional pricing
- Types of mandatory fees that must be included in total price advertisements
- Which fees may be excluded from the total price
- Which fees may be itemized
- Dynamic pricing
- Shipping charges
- Fees that depend on consumer behavior
- Credit card surcharges or other processing fees
- Ancillary goods or services
- Standard of disclosing price information “clearly and conspicuously”
- National and regional advertising campaigns
- Online marketplaces
- When the final amount of payment must be disclosed
- Clarification on live-ticketing events and short-term lodging arrangements
- Conflicts with state or local law
- Examples of potentially deceptive representations
The FAQ also fulfills the role of a small entity compliance guide under the Small Business Regulatory Enforcement Fairness Act (SBREFA), helping smaller operators understand and implement the rule without legal ambiguity.
Businesses operating in the live-event or short-term lodging industries should take this guidance particularly seriously and ensure their pricing strategies align with the rule ahead of the May 12 compliance deadline.
