The rules require that all mandatory fees be disclosed upfront, except for taxes and shipping charges.
A new disclosure rule on so-called “junk fees” and bait-and-switch pricing associated with live-ticket events and short-term rentals, such as those offered by Ticketmaster, Airbnb, and VRBO, took effect on May 12.
Formally known as the Trade Regulation Rule on Unfair or Deceptive Fees, the Federal Trade Commission’s (FTC’s) junk fee rules require that any mandatory fees be disclosed upfront, except for taxes or shipping charges. The new rule was approved by a 4–1 vote on Dec. 24, 2024, by the five-member FTC board, which included two Democratic commissioners who have since been fired by President Donald Trump.
On May 5, the FTC staff published frequently asked questions regarding the agency’s new rules published in the Federal Register on Jan. 10.
“These unfair and deceptive pricing practices can harm consumers and undercut businesses trying to compete fairly on price,” the FTC states.
The FTC staff also notes that the new rule furthers Trump’s executive order on combating unfair practices in the live entertainment market by ensuring price transparency at all stages of the live-event ticket-purchase process, including the secondary ticketing market.
It also highlights that the new mandate preserves flexibility for businesses by not banning any type or amount of fee or specific pricing strategies.
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“Rather, it requires that businesses that advertise prices tell consumers the whole truth upfront about total prices and fees,” the FTC states.
Under former President Joe Biden, the FTC initially launched the junk fees rulemaking during the pandemic in 2022 by requesting public input on whether a rule could help eliminate unfair and deceptive pricing tactics.
Although the initial proposed rule applied to a wide range of businesses—including restaurants, food delivery, and transportation services such as Uber and Grubhub—the final rule solely applies to “live-event tickets or short-term lodging, including temporary sleeping accommodations at a hotel, motel, inn, short-term rental, vacation rental, or other place of lodging.”
“People deserve to know upfront what they’re being asked to pay—without worrying that they’ll later be saddled with mysterious fees that they haven’t budgeted for and can’t avoid,” said then-FTC Chair Lina Khan, who was replaced by current Chair Andrew Ferguson on Jan. 20.
“The FTC’s rule will put an end to junk fees around live event tickets, hotels, and vacation rentals, saving Americans billions of dollars and millions of hours in wasted time.”
After receiving more than 12,000 comments on how hidden and misleading fees affected personal spending and competition, the FTC announced a proposed rule in October 2023 and invited a second round of comments. By the end of the process, the FTC received more than 60,000 additional comments that were used in developing the final rule in late 2024.
Although the rule took effect on May 12, legal experts warn of potential legal challenges, including those from industry groups and trade associations that represent live-event ticket holders and short-term rental companies. Congress, by its authority, can also repeal the FTC rule that authorizes civil penalties of up to $51,744 per violation.
In addition, the Biden administration convened a highly publicized meeting with state legislative leaders in April 2024 to further discuss even more restrictive state-level actions to address junk fees. Attorneys general in all 50 states also have long held legal authority to target ticket vendors and short-term rental properties under state consumer protection laws.
Attorney Jennifer Driscoll, co-chair of the antitrust and trade regulation team at Connecticut-based Robinson & Cole LLP, told The Epoch Times that she advises clients to review all advertising and listings to ensure compliance with federal and state laws. She also advocates training for employees who work in advertising or communicate directly with customers and the public.
“Every time the price of a room is displayed, it must conform with the applicable legal standards,” she said via email. “Messaging must be consistent, with an emphasis on disclosure of total price accompanied by an appropriate breakdown of mandatory ancillary fees.”
Media representatives for Ticketmaster and Airbnb did not respond directly to The Epoch Times’ request for comment. However, Airbnb spokeswoman Becky Ajuonuma pointed The Epoch Times to the short-term rental host’s April 21 “total price” announcement, which alerts Airbnb guests to the full cost of their reservation when browsing property listings on the company’s app, including all fees before taxes.
Additionally, Ticketmaster released a statement on May 12 announcing that it has launched its online All In Prices platform in response to the new FTC rule. The new site displays the full price of event tickets in the United States, including all upfront fees before taxes.
“Ticketmaster has long advocated for all-in pricing to become the nationwide standard so fans can easily compare prices across all ticketing sites, and we commend the FTC for making that a reality,” Ticketmaster Chief Operating Officer Michael Wichser said in a statement.
“Paired with the recent executive order targeting abuse in the secondary market, it marks a meaningful step forward for our industry and we’ll continue pushing for additional reforms that protect both artists and fans.”
The Consumer Federation of America also released a statement, saying the new rules will save consumers more than 50 million hours per year and $11 billion over the next decade by cracking down on deceptive fee practices, echoing claims made by the FTC staff.
“We look forward to vigorous enforcement of the rule by the (FTC), and we urge states to adopt their own junk fees legislation and require transparent pricing across the marketplace,” said Susan Weinstock, CEO of the nonprofit consumer advocacy group.
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