This rule does apply to all states, and it is hoped that this will set a national standard instead of a patchwork of varying state regulation.
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.
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