FTC Junk Fee Rule: What It Actually Does and Does Not Ban •
FTC Junk Fee Rule Many assumed that hidden ticket and hotel fees had simply disappeared after hearing that junk fees had been outlawed. They have not vanished. In actuality, sellers are now required to display the entire price up front rather than adding fees at the point of sale. The actual fees may still be as high as they were previously. That distinction is important, and it’s important to know exactly what protection this rule offers and does not.
What the FTC Junk Fee Rule Does Not Cover FTC Junk Fee Rule Short-term lodging and tickets to live events are specifically covered by the rule. Although the FTC has stated that it will continue to pursue deceptive pricing cases in other industries through its general enforcement authority rather than this particular rule, it does not cover other industries where hidden fees are common, bank overdraft charges, certain telecom fees, or add-on charges in other retail categories. Protection may differ slightly depending on where you live because a number of states have enacted their own all-in pricing laws that go beyond or apply more broadly than the federal rule. FTC Junk Fee Rule Additionally, enforcement has been inconsistent. The FTC has pursued a few high-profile cases, but with thousands of online ticket sellers, hotels, and vacation rental platforms, it is impractical to enforce the law throughout the whole market, and there are probably still gaps in compliance.
FAQs Does the FTC’s junk fee rule actually ban high service fees? FTC Junk Fee Rule No. It mandates that sellers reveal the entire cost up front, including any required fees. It does not restrict or cap the amount of fees that a business can charge. What industries does the junk fee rule cover? FTC Junk Fee Rule Tickets for live events and short-term accommodations, such as hotels and vacation rentals, are currently covered. Other industries, such as banking or telecom fees, are not covered. What happened with the StubHub settlement? FTC Junk Fee Rule In order to resolve FTC accusations that it neglected to disclose full ticket prices during a particular three-day window in May 2025, StubHub agreed to pay $10 million in April 2026; eligible customers will receive an automatic refund.
Is the Live Nation and Ticketmaster lawsuit still ongoing? FTC Junk Fee Rule Indeed. Due to alleged drip pricing, the FTC and seven states sued the companies in September 2025. A motion to dismiss was filed in January 2026, but the case is still pending. What should I do if I see a hidden fee added at checkout? FTC Junk Fee Rule The FTC uses its consumer complaint system to find patterns of noncompliance and target enforcement, so you can report it directly to the agency. Do all states follow the same rules as the federal junk fee rule? FTC Junk Fee Rule No. State-specific protections may differ because several states have all-in pricing laws that may be more expansive than the federal regulation. Does this rule mean tickets and hotel rooms are now cheaper? FTC Junk Fee Rule Not always. The rule does not reduce the total price a seller is permitted to charge, but it does increase price transparency by requiring the entire cost up
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