FTC rule forces fee transparency in ticketing and lodging industries

Ticketing and short-term lodging businesses will be prohibited from hiding “convenience” and other fees from consumers under a Federal Trade Commission (FTC) rule set to take effect next week.

The FTC’s Rule on Unfair or Deceptive Fees covers familiar territory for the commission, which is charged with protecting consumers from unfair trade practices. In the works since at least November 2022 and finalized January 10, the rule targets fees that are not disclosed in the ticketing and short-term lodging industries and that have become all too common, the FTC said.

The rule, which takes effect May 12, doesn’t outright ban specific pricing strategies, the FTC said. It does require businesses to disclose all fees when they advertise to the public, the commission explained in an FAQ issued Wednesday for businesses and consumers.