United States of America: Federal Trade Commission's Rule on Unfair or Deceptive Fees enters into force

On 12 May 2025, the Federal Trade Commission's (FTC) Rule on Unfair or Deceptive Fees entered into force. On 17 December 2024, the FTC adopted the Rule with the objective of addressing misleading pricing practices involving hidden fees in the live-event ticketing and short-term lodging sectors. The rule prohibits "bait-and-switch" pricing tactics and requires businesses to clearly disclose the total price, including all mandatory fees, in advertisements and before the consumer consents to payment. It further prohibits misrepresentations regarding the nature, purpose, amount, or refundability of any fee or charge. The rule permits optional and government-imposed fees to be displayed separately, provided all mandatory fees are included in the total price. The FTC states that the rule is intended to enable comparison shopping and ensure transparent pricing for consumers.