The U.S. Federal Trade Commission (FTC) has announced that starting May 12, businesses will no longer be allowed to add hidden fees when selling live event tickets or offering short-term lodging like hotels, motels, Airbnb, or VRBO.
The rule aims to stop unfair price practices and make sure customers know the full cost before they pay.
This new rule, called the “Rule on Unfair or Deceptive Fees,” covers not only the businesses themselves but also third-party sellers, resellers, and travel agents.
The FTC has shared an FAQ guide to help these businesses understand how to follow the new rule.
The FTC says live event tickets include concerts, sports games, theater, music, and other live performances — but not pre-recorded shows or content.
The rule requires that all known fees be included in the total price shown to customers.
Ads and offers must clearly display the full price, and it must stand out more than any other price details. Companies are not allowed to trick customers or hide extra charges.
Businesses must also provide clear and honest details about their fees, including refund policies.
They should avoid using unclear terms like “convenience fees,” “service fees,” or “processing fees” without explaining them.
Dynamic pricing, where prices change based on demand, is still allowed, but only if the pricing stays clear and honest.
Some charges, like taxes, government fees, shipping costs, and optional add-ons chosen by the buyer, can be left out of the advertised price.
However, businesses must tell customers ahead of time that these extra costs are not part of the total price and explain exactly what they cover.
For example, if shipping fees are not included, the business must clearly say how much they are and why.
The FTC first approved this rule in December 2024 after many years of consumer complaints about surprise charges.
