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Hidden fees

United States — FTC Rule on Unfair or Deceptive Fees (16 CFR Part 464)

NationalUSRead off primary law

United States (federal)

Rule id
fees.us-ftc-464
Version
1.0.0
In force from
May 12, 2025
Last read against its sources
August 5, 2026
Countries bound
United States

In plain language

What this regime says.

The FTC's Rule on Unfair or Deceptive Fees, in force since 12 May 2025, requires live-event ticket sellers and short-term lodging providers to show the total price — including every mandatory fee — wherever a price is advertised, and more prominently than any other pricing figure. It does not cover other industries, and it gives consumers no private right of action.

Who is covered

Anyone buying live-event tickets or short-term lodging in the United States on or after 12 May 2025. Not rental cars, not broadband, not banking, not delivery, not gyms.

What you get

Under this rule specifically: nothing directly, because the FTC Act has no private right of action. The rule establishes that the practice is unlawful, which is what your state-law claim and your card dispute rest on, and the FTC can obtain consumer redress under § 19 if it brings a case.

Where claims go wrong

  • Believing the rule banned all junk fees. It covers live events and short-term lodging only.
  • Accepting "we showed you the fee at checkout" as an answer. This is a total-price rule; the breach was complete when the price was advertised.
  • Accepting a business-set fee described as a government charge. The exclusion is about who levies it, not what it is called.
  • Relying on the federal rule for the remedy. The money comes from state law, a chargeback, or an FTC redress fund.
  • Letting the 120-day card dispute window pass while corresponding with the trader.
The official claim route

Authority

Every citation,
with its pinpoint.

A claim that cites “EU law” gets filed. A claim that cites Article 7(1)(c) gets answered. These are the exact coordinates this entry rests on.
  1. 16 CFR Part 464 (Rule on Unfair or Deceptive Fees)Code of Federal Regulations, Title 16 (Commercial Practices), Part 464URL verified 2026-08-05§ 464.1 definitions, including "Total Price" — the maximum total of all fees or charges a consumer must pay for a good or service and any mandatory ancillary good or service, excluding government charges, shipping charges and charges for optional ancillary goods or services; § 464.2 — a business must not offer, display or advertise an amount a consumer may pay without clearly and conspicuously disclosing the Total Price, and must display the Total Price more prominently than any other pricing information; § 464.3 — misrepresenting the nature, purpose, amount or refundability of any fee is prohibited, and the nature, purpose and amount of any excluded charge must be disclosed before the consumer consents to pay
  2. 15 U.S.C. § 45 (Federal Trade Commission Act, § 5)United States Code, Title 15URL verified 2026-08-05§ 45(a)(1) — unfair or deceptive acts or practices in or affecting commerce are unlawful; § 45(m)(1)(A) — civil penalties for a knowing violation of a trade regulation rule
  3. 15 U.S.C. § 57b (Federal Trade Commission Act, § 19)United States Code, Title 15URL verified 2026-08-05§ 57b(a)(1) — where a person violates a rule respecting unfair or deceptive acts or practices, the Commission may bring a civil action for relief including rescission or reformation of contracts, refund of money, return of property and payment of damages for injured consumers

Sources

Where a figure is indexed, converted or published by a regulator rather than fixed in the instrument, the provenance is recorded separately. Anything marked as a modelled estimate is exactly that — a model, not a statutory number.

What it imposes

Clocks, defences and the ladder.

A rule module builds these while it evaluates, because a limitation period depends on which forum is open to you. What follows is the structure this regime produces — deliberately with no dates and no figures, because those belong to your facts rather than to the law.

The clocks it starts

  • Card chargeback window (commonly 120 days)The only short clock in this result. Card scheme rules generally allow about 120 days from the transaction to dispute a charge that does not match what was agreed. It is a scheme rule rather than a legal right, but it is the fastest route to the money and the easiest one to lose by waiting.Filing window

What it entitles you to, beyond money

  • Demand the fee back in writing, citing the rule and your state statute togetherSet out the advertised price, the amount charged, and the difference of 28.00 USD. Cite 16 CFR § 464.2 for the total-price obligation and your state's unfair-and-deceptive-practices statute for the remedy. The combination matters: the federal rule establishes that the practice is unlawful, and the state statute is what gives you a claim.§ 464.1 definitions, including "Total Price" — the maximum total of all fees or charges a consumer must pay for a good or service and any mandatory ancillary good or service, excluding government charges, shipping charges and charges for optional ancillary goods or services; § 464.2 — a business must not offer, display or advertise an amount a consumer may pay without clearly and conspicuously disclosing the Total Price, and must display the Total Price more prominently than any other pricing information; § 464.3 — misrepresenting the nature, purpose, amount or refundability of any fee is prohibited, and the nature, purpose and amount of any excluded charge must be disclosed before the consumer consents to pay
  • Report it to the FTC at reportfraud.ftc.govIt takes a few minutes, it is free, and it is how the Commission identifies which businesses to bring cases against. If a case is brought, § 19 allows consumer redress — and your report is what puts your transaction inside the class of injured consumers.§ 57b(a)(1) — where a person violates a rule respecting unfair or deceptive acts or practices, the Commission may bring a civil action for relief including rescission or reformation of contracts, refund of money, return of property and payment of damages for injured consumers
  • Dispute the difference with your card issuerA charge materially higher than the advertised price is a recognised dispute reason. The window is short — commonly 120 days — and it runs whatever the trader says.
  • Complain to your state attorney generalState AGs brought the resort-fee cases that preceded this rule and they continue to enforce state price-transparency law. Their consumer divisions routinely obtain refunds through informal mediation, which is a faster route to money than anything federal.

What the other side will say

Each of these is a refusal this regime lets a counterparty attempt, paired with the answer to it. Reading them before you write is worth more than any amount of polish on the letter itself.

"The total was shown before you paid"

high likelihood

The trader points at the checkout page, where the fee appeared, and treats that as compliance with the rule.

What answers it

§ 464.2 requires the Total Price to be disclosed clearly and conspicuously wherever an amount is offered, displayed or advertised, and to be more prominent than any other pricing information. The obligation attaches to the advertised price, not to the final screen. Disclosure at checkout is what the rule was written to stop being sufficient.

16 CFR Part 464 (Rule on Unfair or Deceptive Fees) — § 464.1 definitions, including "Total Price" — the maximum total of all fees or charges a consumer must pay for a good or service and any mandatory ancillary good or service, excluding government charges, shipping charges and charges for optional ancillary goods or services; § 464.2 — a business must not offer, display or advertise an amount a consumer may pay without clearly and conspicuously disclosing the Total Price, and must display the Total Price more prominently than any other pricing information; § 464.3 — misrepresenting the nature, purpose, amount or refundability of any fee is prohibited, and the nature, purpose and amount of any excluded charge must be disclosed before the consumer consents to pay

"That is a tax or a government charge, so it is excluded"

high likelihood

The trader labels a fee of its own — a "resort fee", a "service fee", a "regulatory recovery fee", a "municipal cost recovery charge" — in language that sounds governmental.

What answers it

The exclusions are narrow and they are about who levies the charge, not what it is called. A charge is excluded only where it is imposed by a government on the transaction and passed through unchanged. A fee the business sets, keeps, and merely names after a regulatory cost is the business's own charge and must be in the total price. Ask them to identify the taxing authority, the instrument imposing it, and the rate. A charge with no answer to those three questions is not a government charge.

"The fee was disclosed in our terms and conditions"

high likelihood

The trader points at a fees page, a footnote, an asterisk, a hyperlink, or a line in the terms accepted at checkout, and treats that as compliance.

What answers it

Ask which rule they say they complied with. A disclosure buried behind a link satisfies neither kind of obligation. Under a total-price rule the fee had to be in the price you were shown when you were shopping, so a later disclosure is not a defence at all — the violation was complete when the price was displayed. Under a disclosure rule the information must be clear, conspicuous and given before the transactional decision, which a hyperlink or a terms page is repeatedly held not to be.

"You saw the total before you paid and went ahead anyway"

high likelihood

The trader argues that completing the purchase after seeing the final figure cures everything that came before it.

What answers it

Under a total-price rule the breach happened when the price was advertised, and proceeding at checkout neither cures it nor waives it. Under a disclosure rule the question is whether the omission was capable of causing the average consumer to take a transactional decision they would not otherwise have taken — which is exactly what drip pricing is designed to achieve, since by the time the fee appears the consumer has invested time, entered details, and in a ticketing context is inside a countdown timer.

"Part 464 does not apply to us"

medium likelihood

The trader says its industry is outside the rule. For most industries this is simply correct.

What answers it

Check it honestly before pushing back: the rule covers live-event tickets and short-term lodging only. If the trader is outside it, drop the point and run the state statute and section 5 of the FTC Act instead — the conduct is still capable of being an unfair or deceptive practice, and the state claim is the one that carries a remedy anyway.

16 CFR Part 464 (Rule on Unfair or Deceptive Fees) — § 464.1 definitions, including "Total Price" — the maximum total of all fees or charges a consumer must pay for a good or service and any mandatory ancillary good or service, excluding government charges, shipping charges and charges for optional ancillary goods or services; § 464.2 — a business must not offer, display or advertise an amount a consumer may pay without clearly and conspicuously disclosing the Total Price, and must display the Total Price more prominently than any other pricing information; § 464.3 — misrepresenting the nature, purpose, amount or refundability of any fee is prohibited, and the nature, purpose and amount of any excluded charge must be disclosed before the consumer consents to pay

"That fee is charged by someone else, not us"

medium likelihood

A ticketing platform blames the venue, a hotel booking site blames the hotel, an airline blames the payment processor.

What answers it

The obligation attaches to whoever advertises the price. If the fee is unavoidable to complete the purchase then it forms part of the price you must pay, and it belongs in the figure that was advertised, whoever ultimately receives it. Ask the trader to show that the fee is genuinely optional or genuinely outside their control; if a purchase cannot be completed without it, it is neither.

"This is standard practice in our industry"

medium likelihood

The trader treats the prevalence of drip pricing as evidence that it is lawful.

What answers it

Prevalence is why the rules were written, not a defence to them. Regulators on four continents legislated against this practice between 2022 and 2025 precisely because it had become universal. Ask the trader to identify the provision it relies on rather than the conduct of its competitors.

Where to take it next

  1. Written demand to the traderQuote 16 CFR § 464.2, give the advertised price, the charge and the difference, and set a deadline of fourteen days. Say that you will report the pricing to the FTC and your state attorney general and raise a card dispute if it is not resolved.Claim directtypically 14 days
  2. Card chargeback for the differenceRaise it in parallel. The scheme window is short and independent of the correspondence.Claim directtypically 45 days
  3. Report to the Federal Trade Commissionreportfraud.ftc.gov. Free, quick, and the mechanism by which Part 464 is actually enforced. Name the business, quote the advertised price and the total charged, and attach the screenshot if you have one.Regulatorofficial page
  4. State attorney general consumer divisionFaster than the federal route for an individual refund, and state AGs enforce both their own price-transparency statutes and the general unfair-practices act.Regulatortypically 60 days
  5. Small claims court, on the state-law claimBinding on themSue on your state statute rather than on Part 464 — the federal rule is evidence that the practice is unlawful, not a cause of action. Bring the advertisement, the receipt and your written demand.Small claimstypically 120 days

Documents

What this regime can produce.

Every one of these is a document you send yourself, in your own name. Duesday never writes to anybody on your behalf and is never anyone’s agent.

The same claim type elsewhere

Other rights in the same countries

Does this one reach your facts?

The engine runs every regime that could apply at once and reconciles them, rather than making you guess which page to read.

Not a law firm. Not legal advice. You send it yourself. This page describes a law; it is not advice about your situation and no outcome is promised.