The Federal Trade Commission has released a set of Frequently Asked Questions to help consumers and businesses understand the agency’s new Rule on Unfair or Deceptive Fees. The Rule addresses bait-and-switch pricing and misleading fee disclosures, specifically in the live-event ticketing and short-term lodging sectors. These practices can mislead customers and disadvantage businesses that aim to compete honestly. The Rule supports President Trump’s Executive Order focused on combating unfair practices in the live entertainment market by ensuring full price transparency throughout the entire ticket-buying process, including resale platforms.
The FTC’s Rule does not restrict specific types or amounts of fees but instead requires businesses to disclose the full price of products or services upfront. The FAQs offer detailed guidance on which industries and events the Rule covers, what fees must be included in the total advertised price, and how optional add-ons should be presented. The guidance also outlines what constitutes a clear and conspicuous disclosure and highlights examples of potentially misleading practices. This document also fulfills the role of a small entity compliance guide under the Small Business Regulatory Enforcement Fairness Act and reflects the FTC staff’s interpretation of the Rule.
