United States of America: Adopted FTC Rule on Unfair or Deceptive Fees

On 17 December 2024, the Federal Trade Commission (FTC) adopted the Rule on Unfair or Deceptive Fees, with the objective of addressing misleading practices involving hidden fees in the live-event ticketing and short-term lodging industries. The rule prohibits the use of "bait-and-switch" pricing tactics, requiring businesses to disclose the total price, including all mandatory fees, in advertisements and prior to the consumer's consent to payment. Furthermore, the rule prohibits the misrepresentation of the nature, purpose, or refundability of any fees or charges. The new rule offers businesses flexibility in displaying optional or government-imposed fees separately while requiring all mandatory fees to be fully disclosed. This is expected to facilitate easier comparison shopping for consumers, thereby promoting fair competition and saving consumers both time and money by preventing unexpected costs. The rule will take effect 120 days after publication in the Federal Register.