FTC bans hidden fees for live events and short-term rentals, effective May 12

On Monday, the US Federal Trade Committee (FTC) issued new documents showing in detail “its ruling on unfair or deceptive fees.” The base, which was appointed on May 12, prohibits the hidden fees for live events, hotels and short -term rents. It also prohibits practices such as “pricing bait and switching” and any procedures that hide or distort total prices and fees.

In the recently published questions, FTC provides a guide for these types of companies, providing detailed information about price transparency.

The base will affect companies, including direct events ticket sellers and short -term residency providers, such as hotels, motives, Airbnb or VRBO. The third platforms, distributors and travel agents are covered by the new regulations. (Airbnb has already updated its service before this new list to show users the total cost of their survival in advance.)

According to FTC:

• Live events tickets include those of concerts, sporting events, music, theater and other live shows that the audience watches when they happen, but not audio or visual shows in advance.
• The total price should include all known fees and fees.
• The sites should reveal the total price in advance in ads and other offers for direct event tickets or short -term residence.
• The total price should also be wider more prominent than any other pricing information.
• There should be no distortion around drawings and charges.
• The sites must provide honest information about the fees, including recovery policies.
• The sites should avoid mysterious terms such as “comfort fees”, “service fees” or “processing fees”.
• Dynamic pricing strategies are still allowed as long as pricing information is not misleading.

The new common questions were also included in FTC, which are the types of fees that can be excluded, such as taxes, government fees, shipping fees, commodity fees or optional services that people may choose to buy as part of the same treatment. (Note that handling fees are not in this list.)

However, FTC indicates that companies must unveil that they have excluded fees from the total price before the payment request. For example, if a company excludes shipping fees from the announced price, it is required to clearly mention the amount of those fees and their purpose.

FTC approved the base for the first time in December 2024, a historical list that was characterized by a great victory for consumers who felt frustrated for years on hidden drawings.