Trade Regulation Rule on Unfair or Deceptive Fees
The Federal Trade Commission ("FTC" or "Commission") is issuing a final trade regulation rule entitled "Rule on Unfair or Deceptive Fees" ("rule" or "final rule") and Statement of Basis and Purpose addressing certain unfair or deceptive practices involving fees or charges for live-event tickets and short-term lodging: bait- and-switch pricing that hides the total price by omitting mandatory fees and charges from advertised prices; and misrepresenting the nature, purpose, amount, and refundability of fees or charges. The final rule specifies that it is an unfair and deceptive practice for businesses to offer, display, or advertise any price of live-event tickets or short-term lodging without clearly, conspicuously and prominently disclosing the total price. The rule also requires businesses to clearly and conspicuously make certain disclosures before a consumer consents to pay. The rule further specifies that it is an unfair and deceptive practice for businesses to misrepresent any fee or charge in any offer, display, or advertisement for live-event tickets or short-term lodging.
What this rule actually says
The FTC is cracking down on hidden fees in two specific industries: live-event tickets and short-term lodging (like Airbnb). If a business advertises a price, that price must include *all* mandatory charges upfront—no surprise fees buried in checkout. Additionally, businesses can't lie about what fees are for, how much they cost, or whether they're refundable.
Who it applies to
- If you're selling live-event tickets or short-term lodging: This rule applies directly. You cannot advertise "$50 tickets" if the final price is $75 after fees.
- If you're building AI medical scribes, hiring assistants, or support chatbots: This rule does *not* apply to you. These use cases don't fall into the regulated categories.
- Jurisdictions: This is a federal FTC rule, so it applies to all U.S. businesses selling these products, regardless of state.
- AI-specific scope: The regulation doesn't mention AI tools at all—it targets the pricing disclosure practices themselves, not the technology behind them. An AI-powered ticketing system faces the same rules as a non-AI one.
What founders need to do
- Audit your pricing display (1-2 days). If you sell tickets or lodging, screenshot how prices appear on your website, app, and ads. Verify that the first price shown equals the final checkout price with all fees included.
- Rewrite your checkout flow (2-5 days). Before customers pay, clearly show the total price breakdown: base price, each fee type, taxes, and final total. Use plain language and prominent formatting.
- Review marketing materials (1 day). Check every ad, email, social post, and listing where you quote a price. Replace any partial quotes with full-price numbers or remove the price entirely.
- Document what fees are for (1 day). If you charge service fees, processing fees, or facility fees, be explicit about what each covers and whether it's refundable. Update your terms of service.
- Set up ongoing compliance (ongoing, minimal). When you add new fees or change pricing, apply the same disclosure rules before launch.
Bottom line
Ignore this unless you sell event tickets or short-term lodging—most indie AI founders have no exposure here.