Unhidden Fees: FTC Mandates Upfront Disclosure of All Mandatory Fees in Live-Event Ticketing

The live entertainment industry should take note that the Federal Trade Commission (“FTC”) has finalized its Rule on Unfair or Deceptive Fees aimed at eliminating deceptive pricing practices in the live-event ticketing industry. Effective May 12, 2025, the rule requires ticket sellers — including primary platforms, resellers, and event promoters — to disclose the total price of a ticket, inclusive of all mandatory fees, at the outset of the purchasing process. Consumers have been clamoring for up-front transparency for some time and this new rule intends to meet their concerns.

The rule targets the well-known practice of “drip pricing,” where consumers are shown a lower initial price, only to discover significantly higher costs at checkout due to added fees. Ticket sellers have by and large followed each other in this practice to remain competitive (nobody wants to be priced out of a potential sale by showing the actual higher ticket price upfront). Under the new rule, the total ticket price must be displayed more prominently than any other pricing information, with the exception of the final payment amount. This rule should help level the playing field, while protecting consumers from checkout whiplash.

The nuts and bolts of the new rule are as one might expect. Mandatory fees that must be included in the total price are those that consumers cannot avoid and all fees the business knows about and can calculate upfront. These include online ticket purchasing fees, service or processing fees, venue-imposed facility charges, required per-ticket convenience fees, and credit card processing fees. Optional charges, government-imposed taxes, and shipping costs may be listed separately, but only if they are clearly disclosed before the final amount of payment.

In addition to the total price, businesses must prominently display the final amount of payment before asking consumers to complete the purchase. The final amount of payment includes the ticket price, all mandatory fees, taxes, shipping, and any optional add-ons. This final amount must be displayed as prominently as, or more prominently than, the total price. In essence, the new rule favors prominent disclosures throughout the purchasing process, so that consumers don’t feel psychologically pressured to complete a higher-than-expected transaction at the very end.

Note that a violation of this rule could result in significant consequences, including the payment of civil penalties or the refund of money to consumers. Businesses have 120 days from May 12, 2025, to bring their practices into compliance.

Ticketing platforms, resellers, and event organizers should begin reviewing and updating their price displays and advertising to meet the new disclosure standards and avoid regulatory scrutiny. For further information and guidance on FTC’s Rule on Unfair or Deceptive Fees or advertising laws and regulations generally, please contact AGG partner Anuj Desai, associate Erin Winn, or another member of AGG’s Advertising or Entertainment & Sports teams.