FTC bans hidden charges for dwell occasions and short-term leases, efficient Might 12

The U.S. Federal Commerce Fee (FTC) on Monday launched new documentation detailing its new “Rule on Unfair or Misleading Charges.” The rule, set to take impact on Might 12, prohibits hidden charges for dwell occasions, inns, and short-term leases. It additionally bans practices equivalent to “bait-and-switch pricing” and any actions that conceal or misrepresent whole costs and charges.

In a newly revealed FAQ, the FTC presents a information for these kind of companies, offering detailed details about pricing transparency.

The rule will impression companies, together with dwell occasion ticket sellers and short-term lodging suppliers, like inns, motels, Airbnb, or VRBO. Third-party platforms, resellers, and journey brokers are additionally coated by the brand new regulation. (Airbnb already up to date its service prematurely of this new regulation to indicate customers the full value of their keep upfront.)

Based on the FTC:

• Dwell occasion tickets embody these for live shows, sporting occasions, music, theater, and different dwell performances that audiences watch as they happen, however not pre-recorded audio or visible performances.
• The full value should embody all identified prices and charges.  
• Websites should disclose the full value upfront in adverts and different presents for live-event tickets or short-term lodging.  
• The full value should even be extra prominently displayed than some other pricing data.  
• There needs to be no misrepresentation about charges and prices.
• Websites ought to present truthful details about charges, together with refund insurance policies.  
• Websites ought to keep away from imprecise phrases like “comfort charges,” “service charges,” or “processing charges.” 
• Dynamic pricing methods are nonetheless allowed so long as the pricing data isn’t deceptive.

Additionally included within the FTC’s new FAQ are the kinds of charges that may be excluded, equivalent to taxes or authorities charges, delivery prices, and prices for elective items or companies folks might choose to purchase as a part of the identical transaction. (Word that dealing with prices aren’t on this record.) 

Nonetheless, the FTC notes that companies should disclose that it has excluded prices from the full value earlier than asking for fee. For instance, if a enterprise excludes delivery prices from the marketed value, it’s required to obviously state the quantity and function of these prices.

The FTC first handed the rule in December 2024, a landmark regulation that marked a big win for customers who’ve been pissed off for years about hidden charges.