Federal Rule Combating Hidden and Add-On Ticket and Hotel Fees Now in Effect

COLUMBIA, S.C. – A new federal rule aimed at preventing deceptive pricing for live-event ticketing and short-term lodging is now in effect. The South Carolina Department of Consumer Affairs (SCDCA) encourages consumers and businesses to understand the requirements of the Federal Trade Commission (FTC)’s Rule on Unfair or Deceptive Fees. 

The Rule is intended to create transparency in the purchase process for live-events (concerts, sporting events, music, theater and other live performances) and short-term lodging (hotel, motel and home rentals through apps like Airbnb or VRBO). It requires businesses to: 

• Disclose the total price upfront. This includes all charges and fees the business knows about and can calculate upfront. Some fees such as taxes, government charges or optional services can be excluded from the total price but must be disclosed before asking for payment.
• Display the total price prominently. The all-in total must stand out to a consumer and not be buried or hidden in fine print.
• Be truthful about fees and charges. A business must describe what fees are for and avoid vague phrases like “convenience fees,” “service fees,” or “processing fees.”

The FTC’s Frequently Asked Questions website provides additional details on the Rule. Additional state and local laws may also apply depending on the location of the event or lodging. 

SCDCA will provide additional information on the Rule and other travel related tips during a free webinar on Wednesday, May 21 at 10:30 a.m. To register for the “Guard Your Wallet on the Road” presentation, click here.   

About SCDCA

Established in 1974, DCA has fifty years of experience in protecting South Carolina consumers while recognizing those businesses that act honestly and fairly. Cultivating a marketplace comprised of well-informed consumers and businesses prevents deceptive and unfair business practices, allows legitimate business activity to flourish, resulting in the promotion of competition and a healthier economy.

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