FTC prohibits the hidden commissions for live events and short -term rentals, in force from 12 May

On Monday, the Federal Trade Commission (FTC) of the United States has published a new documentation that describes in detail its new “rule on unjust or deceptive commissions”. The rule, scheduled for May 12, prohibits hidden commissions for live events, hotels and short -term rentals. Bans also practices such as “Esca-Switch prices” and any action that hides or misrepresented total prices and commissions.

In a recently published FAQ, the FTC offers a guide for these types of companies, providing detailed information on the transparency of prices.

The rule will have an impact on businesses, including vendors of live events and short -term accommodation suppliers, such as hotels, motel, Airbnb or Vrbo. Even the platforms, retailers and third -party travel agents are covered by the new regulation. (Airbnb has already updated its service before this new regulation to show users the total cost of their stay in advance.)

According to FTC:

• Tickets for live events include those for concerts, sporting events, music, theater and other live performances that the public looks as they occur, but not for pre -aggravated audio or visual performances.
• The total price must include all the expenses and commissions known.
• The sites must disclose the total price in advance in the ads and other offers for tickets for live events or short -term accommodation.
• The total price must also be displayed in a more evident way than any other prices on prices.
• There should be no false declaration on commissions and expenses.
• The sites should provide truthful information on the commissions, including reimbursement policies.
• The sites should avoid vague terms such as “commissions”, “service commissions” or “processing commissions”.
• Dynamic prices strategies are still allowed as long as prices on prices is not misleading.

The new FTC FTCs are also included the types of commissions that can be excluded, such as taxes or government commissions, shipping costs and charges for optional goods or services that people can select to buy as part of the same transaction. (Note that management costs are not in this list.)

However, the FTC notes that companies must disseminate that it has excluded expenses from the total price before asking for payment. For example, if a company excludes shipping costs from the advertised price, it is required to clearly declare the amount and purpose of these charges.

The FTC passed the rule for the first time in December 2024, a historical regulation that marked a significant victory for consumers who have been frustrated for years on hidden commissions.