FTC Junk Fee Rule is effective May 12, 2025

After many years of study and proposals, the Federal Trade Commission (FTC) has finally adopted its Rule on Unfair or Deceptive Fees, or junk fees, which takes effect on May 12, 2025.

The rule prohibits bait-and-switch pricing and other tactics used to hide total prices and mislead people about fees in the live-event ticketing and short-term lodging industries. The rule also furthers President 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.

The FTC has been critically looking at “junk fees” for a long time. Over several years, it proposed banning “Unfair or Deceptive Fees” across many industries. However, on Dec.17, 2024, the FTC surprised many when it published a significantly revised version as its final “Junk Fees Rule” (16 CFR Part 464). The rule was scheduled to become effective 120 days after its publication in the Federal Register. See related blog, “Junk Fees: FTC finally adopts the Final Junk Fees Rule but with focus on Hotels, Short-Term Lodging & Live Event Ticket Sales.”

The FTC published Frequently Asked Questions to provide consumers and businesses with information regarding the agency’s rule.

NOTE: We represent the owners and operators of hotels, restaurants, and other hospitality facilities.
We do not represent consumers making claims against such businesses. When it comes to junk fee laws at the state or national level, we help the owners and operators of hotels, restaurants, and hospitality facilities understand and comply with them. When claims are made against them by consumers or competitors, we advise on strategies and defense of such claims.