FTC Rule on Unfair or Deceptive Fees
Effective May 12, 2025, the FTC's federal junk-fees rule applies nationwide to live-event ticketing and short-term lodging. It requires the total price — inclusive of all mandatory charges — to be disclosed at least as prominently as any other price.
- Effective
- May 12, 2025
- Citation
- 16 C.F.R. Part 464
What the FTC rule requires
The FTC's Rule on Unfair or Deceptive Fees, codified at 16 C.F.R. Part 464, was finalized December 17, 2024 and became effective May 12, 2025. It applies nationwide to two industries: live-event tickets and short-term lodging.
The rule has two core requirements:
- Disclose the total price up front, inclusive of all mandatory fees and charges, more prominently than any other pricing information (other than the final amount of payment).
- Do not misrepresent the nature, purpose, amount, or refundability of any fee or charge.
Industries covered
The rule covers live-event ticketing (concerts, sporting events, theater, and similar performances) and short-term lodging (hotels, motels, vacation rentals, and home shares). Coverage extends to direct sellers, resellers, third-party platforms, and travel agents — online, in person, or through any other channel. Business-to-business transactions are within scope.
What's excluded
The rule excludes from the upfront disclosure requirement: government-imposed taxes and fees (such as occupancy and sales taxes), shipping charges that are reasonable and based on actual costs, and genuinely optional fees the consumer can decline (true upgrades, but not fees disguised as optional).
Excluded charges must still be disclosed before the consumer consents to pay, and the final total must be displayed at least as prominently as the original advertised price.
Penalties and enforcement
Civil penalties of up to the FTC Act § 5(m)(1)(A) statutory maximum may apply per violation. That maximum is adjusted annually for inflation under the Federal Civil Penalties Inflation Adjustment Act and is set at $53,088 per violation as of the January 17, 2025 Federal Register adjustment. The FTC may also seek consumer refunds, compliance orders, and injunctive relief. State attorneys general may enforce certain consumer-protection provisions.
The rule does not preempt stricter state laws. Businesses operating in California, Colorado, Minnesota, and other states with their own all-in pricing rules must comply with the stricter standard.
Frequently asked questions
Does the FTC rule apply to my industry?
Only if you sell live-event tickets or short-term lodging. Other industries are not directly covered by 16 C.F.R. Part 464, but may still be subject to state laws (such as California SB 478 or Minnesota's total-price-disclosure law) and the FTC's general unfair-or-deceptive-practices authority under Section 5 of the FTC Act.
What does 'more prominently than any other pricing information' mean?
The total inclusive price must be displayed in a way that a reasonable consumer would notice it at least as readily as any other displayed price. In practice, this typically means equal or larger font, equal or higher contrast, and equal or earlier placement compared to a base or partial price.
Can I still itemize fees?
Yes. The rule does not prohibit itemization or dynamic pricing. It requires that the total inclusive price be disclosed prominently and that any fee descriptions be accurate (not, for example, vague labels like 'convenience fee' that misrepresent the fee's purpose).
Does the rule preempt state law?
No. The rule does not preempt stricter state laws. California, Colorado, Minnesota, and other states have their own all-in pricing rules that may apply more broadly than the FTC rule.
What if I'm a third-party platform reselling tickets?
The rule applies to you. Coverage extends to direct sellers, resellers, third-party platforms, and travel agents. If you are advertising or displaying a price for a covered product, you must comply with the disclosure requirements regardless of whether you are the original seller.
Sources
Statutes, regulations, and official agency guidance referenced on this page. Primary sources are statutes or codified rules; agency guidance reflects how regulators interpret those rules.
Official FTC business guidance.
- Primary source16 C.F.R. Part 464 (eCFR) ↗
Official codified rule text.
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Start Free CheckThis page is an educational summary, not legal advice. Statutes and regulations change. Confirm current text with the linked primary sources and consult qualified counsel for decisions about your business.