Home » America Travel News » The Federal Trade Commission Launches a Major Rule in the USA to Ban Hidden Fees in Lodging and Event Ticket Sales
Monday, June 2, 2025
The Federal Trade Commission (FTC) in the USA has implemented a powerful new regulation aimed at eliminating deceptive pricing tactics in the travel and live entertainment sectors. This sweeping rule requires all short-term accommodation providers across the USA—including hotels, vacation rentals, and platforms like Airbnb—to clearly show the total cost of a stay before customers complete their bookings. The regulation targets the common practice of “drip pricing,” where initial prices exclude mandatory fees that only appear during the final steps of the purchase process.
Putting an end to hidden charges in lodging and events throughout the USA
Under this FTC directive, businesses operating in the USA must disclose the full price upfront, including all non-tax fees. This ensures travelers see the entire amount they will be charged from the very first point of advertising or booking, except for government-imposed taxes or fees. Frequently added costs like resort fees, destination charges, or mandatory facility fees now must be fully included in the advertised price.
This measure is part of a broader FTC effort to eradicate so-called “junk fees” that inflate the final cost without prior disclosure. By mandating complete price transparency, the rule protects consumers in the USA from unexpected charges and allows for clearer budgeting and fairer price comparisons.
Broad impact across all lodging options in the USA
The rule applies universally to lodging providers nationwide, encompassing everything from large hotel chains and boutique inns to motels, vacation homes, and online rental services. No matter the booking platform or accommodation type, travelers in the USA can expect standardized and transparent pricing.
Previously, price disclosures were uneven and often depended on voluntary compliance or inconsistent enforcement. This federal regulation establishes a consistent baseline across the USA, preventing businesses from gaining unfair advantage by hiding fees until late in the transaction.
Benefits for consumers through clearer pricing in the USA
This new rule delivers significant advantages to consumers across the USA. Booking accommodations will become simpler and more straightforward, with fewer surprise fees. All mandatory charges that guests cannot avoid—such as service fees or amenity charges—must now be clearly displayed at the outset.
This clarity empowers travelers in the USA to make well-informed choices and facilitates direct cost comparisons between lodging options.
Hospitality sector in the USA adopts greater pricing openness
Even before this official mandate, many hospitality providers in the USA had begun to voluntarily include resort and service fees within their advertised rates in response to rising consumer demand for honest pricing.
The FTC’s regulation formalizes and expands this shift, requiring all industry participants across the USA to comply. This aligns with ongoing efforts by hotel associations and consumer advocates calling for more transparent booking disclosures in both online and offline channels.
Event ticket pricing in the USA also gains transparency
The rule extends beyond accommodations to include live event ticket sales in the USA. Organizers, venues, and ticketing platforms must now present the full ticket price—including all service fees and mandatory charges—upfront at the point of sale.
This move addresses widespread consumer frustration caused by ticket prices that increase sharply during checkout due to hidden fees. The regulation guarantees a uniform and transparent pricing experience across both travel and entertainment markets in the USA.
Firm enforcement and accountability across the USA
The FTC stresses that this rule is enforceable and non-negotiable. Lodging and event companies in the USA failing to adhere may face penalties including fines and legal proceedings under laws against deceptive trade practices.
To support compliance, the FTC will provide clear guidance and collaborate with federal and state agencies nationwide to monitor and enforce adherence. Businesses must upgrade their marketing, booking, and customer communication processes to meet these new transparency standards.
Public education campaigns across the USA will also accompany the implementation to inform consumers of their rights and set clear expectations.
Why this rule is critical for USA consumers
FTC economic studies highlight that deceptive pricing schemes distort market competition and cost American consumers billions each year. By concealing part of the cost until late in the purchase, some businesses lure customers with misleadingly low initial prices.
This approach disadvantages honest companies that disclose full prices and undermines fair competition. Given the wide variability in travel and event costs, upfront transparency is essential for protecting consumers in the USA.
A turning point for fairness in pricing across the USA
This FTC initiative reflects growing demand within the USA for integrity, fairness, and clarity in commercial transactions. Especially in digital environments, where hidden fees are harder to detect, this rule embeds transparency as an industry standard.
Whether booking a getaway, purchasing event tickets, or planning trips within the USA, consumers can now trust that the price shown initially is the actual price they will pay.
Looking ahead for businesses in the USA
Companies involved in lodging and live events across the USA will need to review and update their pricing and advertising methods to comply. Early adoption will help avoid penalties and build customer trust in an era where transparency is increasingly valued.
This landmark rule may also pave the way for similar reforms in other industries in the USA where hidden fees are common, such as airlines and car rentals, advancing broader consumer protections nationwide.
Conclusion transparent pricing establishes a new norm in the USA
By outlawing hidden fees in lodging and event ticket sales, the FTC has taken a significant step to protect American consumers from unfair and deceptive practices. This regulation guarantees clearer pricing, fosters trust, and sets a new standard for transparency throughout the travel and entertainment industries in the USA.
With transparency now mandated nationwide, travelers and event attendees in the USA can book with confidence knowing the price they see is the price they pay—no surprises, no hidden charges.
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