Alerts5.7.25
FTC Finalizes 'Junk Fees' Rule: New Pricing Disclosure Requirements Take Effect May 12, 2025
- Targeted Disclosure Mandate: Businesses in the live-event ticketing and short-term lodging sectors must clearly disclose total prices — inclusive of mandatory fees — up front and more prominently than any other pricing terms.
- Narrow Scope, Broad Signals: While limited to two industries, the rule reflects the FTC’s ongoing focus on pricing transparency and digital marketing practices.
- Enforcement Begins Soon: Civil penalties of up to $51,744 per violation may apply beginning May 12, 2025.
The Federal Trade Commission (FTC) has finalized its long-anticipated Trade Regulation Rule on Unfair or Deceptive Fees, commonly referred to as the Junk Fees Rule. This is part of the FTC’s broader effort to improve price transparency in consumer transactions. Announced on December 17, 2024, the rule is scheduled to take effect May 12, 2025, and will apply to live-event ticket sellers and short-term lodging providers, including hotels, inns, and vacation rental platforms.
Keep Up to Date in a Changing World
Do you want to receive more valuable insights directly in your inbox? Visit our subscription center and let us know what you’re interested in learning more about.
