A $199 hotel room that actually costs $274 after a “resort fee” and an “amenity charge” get tacked on at checkout. A $95 concert ticket that balloons to $130 once “service” and “facility” fees appear on the payment screen. A vacation rental advertised at $150 a night that quietly adds a $75 cleaning fee you never agreed to.
For years, this kind of drip pricing was annoying but perfectly legal. That changed on May 12, 2025, when the Federal Trade Commission’s Rule on Unfair or Deceptive Fees (16 CFR Part 464) took effect. The regulation requires hotels, short-term rental platforms, and live-event ticket sellers to display the total price, including all mandatory charges, before a customer clicks “book” or “buy.” It does not ban fees or cap their size. It forces businesses to stop hiding them.
More than a year later, the rule is reshaping how Americans shop for travel and entertainment, though its full impact is still coming into focus.
What the rule actually requires
The core principle is straightforward: any charge a buyer cannot avoid must be folded into the advertised price. That covers resort fees, service charges, cleaning fees on short-term rentals, and payment-method surcharges where no realistic free alternative exists. Sellers can still break out government-imposed taxes and certain variable third-party charges as separate line items, because those amounts depend on factors like location or timing that the seller does not control.
The FTC’s published compliance FAQ draws the line clearly: if a fee is mandatory, it belongs in the headline number. If it is truly optional, like a paid parking upgrade or early check-in, it can appear later in the checkout flow. That distinction matters because many fees companies label “optional” are, in practice, unavoidable for most guests. A resort fee that grants access to the pool and Wi-Fi is not optional if the pool and Wi-Fi are the reason you booked the resort.
How a Biden-era rule survived into 2025
The FTC transmitted the final rule to Congress under the Congressional Review Act, a step confirmed by the U.S. Government Accountability Office. That process gave lawmakers a window to overturn the regulation through a joint resolution of disapproval. No such resolution passed.
The political backstory makes that outcome notable. The rule was finalized during the Biden administration’s broader crackdown on so-called junk fees. It took effect under the current administration, which chose not to delay or withdraw it during the transition period. That decision surprised some industry observers who expected the regulation to be rolled back. Regardless, the rule is now in force nationwide unless a court injunction or future legislation changes it.
Years of groundwork
The Commission did not act on a whim. In 2017, FTC staff economists published research examining mandatory hotel resort fees and found that listing them separately from room rates made accurate price comparisons harder and nudged consumers toward more expensive options. Around the same time, the agency formally warned hotel operators that advertising room rates without disclosing resort fees could constitute deceptive advertising under existing law.
During the formal rulemaking, the FTC collected thousands of public comments through its official docket. Travelers described discovering fees that doubled the cost of budget hotel rooms. Event-goers reported concert tickets that jumped 30 percent or more between the search results page and the payment screen. Small business owners complained that competitors who hid fees undercut their honestly advertised prices, punishing transparency.
Who is covered and who is not
The rule applies to three broad categories: lodging (hotels, motels, bed-and-breakfasts), short-term rentals (including listings on platforms like Airbnb and Vrbo), and live-event ticketing (primary sellers and resale marketplaces). That scope is significant but not unlimited.
Airlines are not covered. Airfare pricing falls under the Department of Transportation’s separate authority, and the DOT finalized its own transparency rule targeting airlines in 2024. Restaurants, car dealerships, and subscription services also fall outside this particular FTC rule, though the agency has pursued hidden-fee cases in those industries under its general authority to police unfair or deceptive practices.
State laws add another layer. California’s SB 478, which took effect in July 2024, already banned hidden fees across a wider range of industries. The federal rule now creates a nationwide floor, but businesses operating in states with stricter laws must comply with whichever standard is tougher.
Early industry response
When the rule took effect, Ticketmaster said it would display fees more prominently, according to the Associated Press. The company had already been piloting all-in pricing in some markets, but the regulation accelerated the rollout. It was the most visible example of a major platform publicly adjusting its interface in direct response to the new requirement.
Hotels and short-term rental platforms have been quieter. Major chains have not issued detailed public statements about how they updated their booking engines. Industry trade groups have acknowledged that compliance required technical and design changes, particularly for smaller operators running legacy reservation software. A solo vacation-rental host using a basic booking tool does not have the same engineering resources as a global hotel chain, and the regulation does not carve out exceptions based on business size.
What remains unresolved
No independent compliance data, as of June 2026, shows how broadly businesses have actually updated their checkout flows. Enforcement is another open question. The rule gives the FTC authority to seek civil penalties and consumer redress for violations, but no enforcement actions under this specific regulation have been publicly announced.
Courts will eventually be asked to interpret edge cases. How precisely must totals appear on a mobile screen? What counts as a “realistic” free payment method when assessing card surcharges? How should platforms treat optional add-ons that the vast majority of customers select?
The economic effects are also unresolved. Hotel industry groups have argued that bundling fees into headline prices could trigger sticker shock and reduce bookings. Consumer advocates counter that transparency levels the playing field and may actually reward businesses that were already pricing honestly. Neither side has published post-implementation data to prove its case. The FTC’s 2017 research was conducted in controlled settings, and no publicly available follow-up study measures how all-in pricing has affected real booking rates or revenue at scale.
How to use the rule to your advantage
For travelers and ticket buyers, the practical change is simple: the first price you see for a hotel room, rental listing, or event ticket should now be much closer to the amount you actually pay. Taxes may still appear as a separate line, but mandatory fees should already be baked in.
If you encounter a booking where hidden charges still appear at checkout, the FTC accepts complaints through ReportFraud.ftc.gov. Screenshots of the discrepancy between the advertised price and the checkout total strengthen any complaint. State attorneys general can also act on junk-fee violations, and in states like California, consumers may have additional protections beyond the federal rule.
One thing the regulation does not promise: lower prices. A hotel that previously charged $199 plus a $45 resort fee is free to list the room at $244. What it can no longer do is advertise $199 and reveal the rest later. The total cost has not changed. The lie has.
