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ARTICLE · 28 MAY 2025

FTC Junk Fee Rule Is Effective May 12, 2025

Jeffer Mangels & Mitchell LLP
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After many years of study and proposals, the Federal Trade Commission (FTC) has finally adopted its Rule on Unfair or Deceptive Fees, or junk fees, which takes effect on May 12, 2025.

United StatesMedia, Telecoms, IT, Entertainment
Jeffer Mangels & Mitchell LLP
Jeffer Mangels & Mitchell LLP
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This rule does apply to all states, and it is hoped that this will set a national standard instead of a patchwork of varying state regulation.

After many years of study and proposals, the Federal Trade Commission (FTC) has finally adopted its Rule on Unfair or Deceptive Fees, or junk fees, which takes effect on May 12, 2025.

The rule prohibits bait-and-switch pricing and other tactics used to hide total prices and mislead people about fees in the live-event ticketing and short-term lodging industries. The rule also furthers President Trump's Executive Order on Combating Unfair Practices in the Live Entertainment Market by ensuring price transparency at all stages of the live-event ticket-purchase process, including the secondary ticketing market.

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