The Federal Trade Commission (FTC) has announced that its Rule on Unfair or Deceptive Fees will come into effect on May 12, 2025. This Rule is designed to protect consumers from misleading pricing practices in the live-event ticketing and short-term lodging industries.

Specifically, the Rule prohibits bait-and-switch pricing and other tactics that obscure total prices, ensuring that consumers are fully informed about fees before making a purchase. This initiative aligns with President Trump's Executive Order aimed at combating unfair practices in the live entertainment market, promoting price transparency throughout the ticket-purchase process, including in the secondary ticketing market.

While the Rule does not restrict the types or amounts of fees businesses can charge, it mandates that any advertised prices must reflect the total cost, including all mandatory fees. This requirement aims to foster fair competition among businesses by ensuring that consumers are not misled about the true cost of services.

The FTC has also published a set of Frequently Asked Questions (FAQs) to assist both consumers and businesses in understanding the Rule. These FAQs cover essential topics such as which businesses are affected, the basic requirements of the Rule, examples of applicable events and lodging, and guidelines for disclosing pricing information clearly. Additionally, they outline what constitutes misrepresentation under the new Rule.

This document serves as a compliance guide for small entities under the Small Business Regulatory Enforcement Fairness Act, reflecting the FTC staff's interpretation of the Rule's requirements.