FTC Issues FAQs On Fees Rule, Affirms Rule To Become Effective Next Week

Yesterday, the FTC issued FAQs to answer common questions about its Rule on Unfair or Deceptive Fees and to provide a small entity compliance guide in connection with the Rule. The issuance of the FAQs affirms that the current FTC, led by Chair Ferguson, does not plan to revoke or modify the Rule, which will now become effective next week, on May 12, 2025.

As we previously covered, the Rule only applies to businesses selling live-event tickets and short-term lodging – a significant departure from the initially-proposed rule which would have covered all industries. The FAQs represent FTC "staff's view" of the Rule and its requirements and are "not binding on the Commission." Nonetheless, the FAQs provide helpful insight into how the FTC plans to enforce the Rule, and are worth considering even for businesses not covered by the Rule when evaluating risk under general UDAP principles.