The FTC bans hidden fees for live events and short-term rentals.

The US Federal Trade Commission (FTC) released a new document on Monday detailing the new “rules regarding unfair or deceptive pricing.” Set to take effect on May 12th, the rule prohibits hidden fees for live events, hotels and short-term rentals. They also prohibit practices such as “bait and switch pricing” and actions that hide or mislead the total price and fees.

In the newly published FAQ, the FTC provides guides for these types of business and provides detailed information on pricing transparency.

This rule affects companies such as live event ticket sellers and short-term accommodation providers such as hotels, motels, Airbnb and VRBO. Third-party platforms, resellers and travel agents will also be subject to the new regulations. (Airbnb has already updated its services ahead of this new regulations, indicating in advance the total cost of users staying.)

According to the FTC:

Live event tickets include concerts, sporting events, music, theatre, and other live performances you see when an audience occurs, but do not include pre-recorded audio or visual performances. The total price must include all known charges and charges. The site must disclose the total price of the advertisement in advance and disclose any live event tickets or other offers for short-term accommodation. Additionally, the total price must be displayed more prominently than any other pricing information. Do not misrepresent your fees or fees. The site must provide true information about the fees, including a refund policy. The site must avoid ambiguous conditions such as “convenience fees”, “service fees”, and “processing fees.” As long as pricing information is misleading, dynamic pricing strategies are still permitted.

FTC’s new FAQ also includes types of fees that can be excluded, such as tax or government fees, shipping fees, and fees for optional items or services that you may choose to purchase as part of the same transaction. (Note that there are no processing fees on this list.)

However, the FTC points out that businesses must disclose that they have excluded fees from the total price before asking for payment. For example, if your business excludes shipping costs from advertising prices, you need to clearly state the amount and purpose of these fees.

The FTC first passed the rules in December 2024. This is a groundbreaking regulation that marked a major victory for consumers who have been unhappy with hidden fees for years.