A new rule forbidding hotels and event managers from hiding the final price of services went into effect in the United States on 12 May 2025. The Federal Trade Commission’s (FTC) Rule of Unfair or Deceptive Fees prohibits so-called “bait-and-switch” tactics which officials say “can harm consumers and undercut businesses trying to compete fairly on price.” The law means consumers must now be shown the full price up front during the booking process, including any extra charges that are known and can be calculated at the time of purchase.
Affecting live-event ticket sellers and short-term lodging providers, as well as any business that offers, displays, or advertises live-event tickets or short-term lodging, including third-parties, resellers, and travel agents, the rule applies to all offers across all platforms, whether online, through a mobile application, in physical locations, or through some other means. It also covers business-to-business transactions.
The FTC Rule on Unfair or Deceptive Fees is now in effect. FTC staff has published FAQs to help inform consumers and businesses about the Rule: https://t.co/Sd5kut6RWm
— FTC (@FTC) May 12, 2025
What purchases exactly are covered?
Tickets for concerts, sporting events, music, theatre, and other live performances that audiences all fall under the scope of the rule (but not pre-recorded audio and visual performances and film screenings).
As for accommodation, all providers of “temporary sleeping accommodations at a hotel, motel, inn, short-term rental, vacation rental, or other place of lodging,” as well as “home shares and vacation rentals offered through platforms (like Airbnb or VRBO)” and “discounted extended stays at a hotel” must abide by the rule. Long-term rentals, short-term extensions to residential leases, and temporary corporate housing, are unaffected.
Charges that must be declared to the consumer include any mandatory booking charges, or up front payments such as daily resort fees, any paid services that the consumer would reasonably expect to be included in their purchase, and credit card charges where no other payment option is available. The nature, purpose, identity, and amount of charges must be made clear.The rule also states that the final total price payable by consumers must be displayed prominently – more prominently than any itemised charges or subtotals.
Don’t fumble in the red zone: FTC staff’s warning about the new Fees Rule: https://t.co/O9B91FIM0J
— FTC (@FTC) May 16, 2025
Non-compliance fines of over $50,000
A CNBC analysis found that 70% of the accommodation booking firms it looked at already disclose fees. But from now on, failure to do so can result in fines in excess of $50,000 (over €44,000) for the business at fault.
If a consumer has reserved a hotel or tickets for an event and believes they have been charged undisclosed or “junk” fees, they can make a complaint to the FTC via the agency’s website or through the Consumer Financial Protection Bureau.
