Don’t fumble in the red zone: FTC staff’s warning about the new Fees Rule

This week, just in time for the start of football ticket sales season, the FTC announced Bureau of Consumer Protection staff sent a warning letter to a company in the business. The issue? According to the letter, the ticket seller may have been violating the FTC’s Rule on Unfair or Deceptive Fees (Fees Rule), which went into effect May 12.

The Fees Rule prevents deception by requiring businesses to display the total price for live-event tickets and short-term lodging upfront. The letter called foul on several instances where the ticket seller appeared to have omitted mandatory fees from the price of live-event tickets for sale on its site, hitting customers with unexpected fulfillment and service fees later in the transaction.

You don’t have to be a football fan excited about the NFL’s 2025 schedule to know that NFL ticket sales mean big business for ticket sellers. And high-volume sales could mean big consequences for consumers if businesses don’t follow the Rule. The letter flagged the consequences for a failure to comply with the Rule: potential enforcement action, which could include civil penalties of up to $53,088 per violation.

If you sell live-event tickets or short-term lodging, here’s what to keep in mind to get first downs and move the ball down the field:

The Fees Rule is in full effect as of May 12. Businesses have had nearly six months to prepare for the Fees Rule, and the FTC expects full compliance.

No hidden fees. Covered businesses must display total prices upfront. That means businesses must display the maximum total of all mandatory fees or charges people have to pay, with limited exclusions. A business can omit certain charges it doesn’t know upfront – like government taxes or charges for optional add-ons – but those fees must be disclosed before asking for final payment.

No misleading fees. The Rule incorporates the most basic of advertising law principles: businesses must tell the truth. When it comes to fees, business must tell the truth about anything fee-related that matters to consumers, like how much the business is charging and why, what the fee is for, and refundability.

Consult the FAQs. FTC staff recently published Frequently Asked Questions (FAQs) addressing common compliance questions. If you’re not sure how to comply, whether you’re covered, or how to think about a specific situation, make the FAQs your first stop.

Report issues. Violations hurt consumers and honest competitors. If you suspect a business isn’t following the rule, let the FTC know. We’ve set up a dedicated link to receive reports.