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FTC Junk Fees Rule: What Hotels and Ticket Sellers Must Show

The FTC rule requires upfront total-price disclosures for covered live-event tickets and short-term lodging, including mandatory fees. Here’s what buyers should know.
From TheFinanceBase Team4 min to read
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The FTC’s Rule on Unfair or Deceptive Fees took effect on May 12, 2025. For covered live-event tickets and short-term lodging, sellers generally must show an upfront total that includes mandatory fees they know and can calculate, and make that total more prominent than other price information. The rule does not ban fees; it is meant to make the price clearer before you commit to a purchase.

What the FTC junk fees rule requires

When a business offers, displays, or advertises covered tickets or lodging, it generally must disclose the total price upfront. That total includes mandatory fees the business knows or can calculate at the time, not just the advertised base rate.

The rule allows some charges—such as government charges, shipping, and optional add-ons—to be omitted from the initial total. Before asking for payment, however, the seller must clearly disclose each excluded charge’s nature, purpose, amount, and the good or service it covers, and prominently show the final amount due.

Sellers may itemize fees, but the breakdown cannot make the total price hard to see or less prominent. The rule does not prohibit any particular fee or pricing strategy; it requires truthful, upfront presentation of the price and fee information. The FTC estimated the rule could save consumers up to 53 million hours per year searching for total prices, equivalent to more than $11 billion over the next decade. Those are agency projections announced in 2024, not measured results since the rule took effect. FTC rule announcement.

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Which businesses and purchases are covered?

The rule covers businesses offering, displaying, or advertising live-event tickets and short-term lodging. It applies across websites, apps, physical locations, and other sales channels, and can reach sellers, resellers, third-party platforms, and travel agents. It also covers business-to-business transactions. The rule does not set a fixed number of nights that defines “short-term”; whether a particular stay qualifies depends on relevant factors. The FTC staff FAQ explains the agency staff’s interpretation but is not binding on the Commission. FTC staff FAQ.

Which fees belong in the advertised total?

A charge generally belongs in the initial total when it is required, reasonably unavoidable, necessary to make the covered service fit its intended purpose, or imposed through a default or opt-out setup. Calling a charge a “service,” “resort,” or “cleaning” fee does not make it optional.

  • Tickets: An unavoidable online ticket-purchase fee must be included.
  • Lodging: A required resort fee or mandatory vacation-rental cleaning fee must be included.
  • Handling: A handling charge is not a shipping charge, so it must be included in the total.
  • Payment surcharges: A credit-card surcharge is mandatory if the buyer has no viable fee-free payment method on that platform. It may be optional if another viable method at that location or platform avoids the charge.

A fee does not become optional merely because a customer could theoretically object to a charge that is automatically applied. The FTC staff FAQ gives examples and details on fee treatment.

What can be left out at first—and when?

Government charges, shipping, and genuinely optional ancillary goods or services may be left out of the initial total, subject to disclosure requirements before payment. An optional item must involve an affirmative consumer choice; it should not be preselected in a way that makes it effectively unavoidable.

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  • Possible optional extras: A VIP package, binocular rental, or trip-protection plan that the customer has not selected.
  • After selection: The added charge must appear in the final payment amount.
  • Government charges and shipping: These may be excluded from the initial total, but their details and the final amount must be disclosed before payment.

The distinction is between a real choice and a required cost. A mandatory fee cannot be shifted out of the headline total simply by giving it a separate label.

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How to compare ticket and lodging prices

Compare offers using the final total for the same event or stay dates and the same ticket quantity or lodging needs. A low initial rate may not be the lowest final price, and two listings may not include identical services. Check the mandatory fees, any charges excluded until later, and any optional selections added during checkout.

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  • For tickets, match the event and number of seats.
  • For lodging, match the dates and the same type of stay or room.
  • Notice whether an extra is genuinely optional or already selected.
  • Watch for government charges or shipping disclosed later, and compare the final payment amount—not just the first price shown.
  • Pay attention to whether the total remains prominent as you move through the purchase.

The rule improves required price disclosure; it does not guarantee that competing offers have identical terms or services. FTC consumer guidance.

What enforcement has looked like

In April 2026, the FTC announced a $10 million StubHub settlement over alleged ticket-price display failures after the rule took effect. The FTC said that in numerous instances StubHub’s initial displays omitted mandatory fees and did not disclose the total, while a later display listed multiple charges without stating the total. The proposed order provides redress for eligible consumers who bought live-event tickets in the United States from May 12–14, 2025, and bars specified forms of price and fee misrepresentation. This was a settlement announcement resolving allegations through a proposed stipulated order; it is not a finding that all ticket sellers use the same practices. FTC StubHub announcement.

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According to the FTC staff FAQ, violations of an FTC trade regulation rule can lead to orders to comply, consumer refunds, and civil penalties. For a disputed fee or borderline lodging arrangement, the precise facts and applicable jurisdiction matter; the federal rule does not itself settle every state or local issue.

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