If you're deciding whether a service fee makes a price too high, compare the amount you'll actually pay, not the number in the advertisement. A mandatory fee is part of your cost even when the business calls it a convenience, processing, resort, platform, handling, or booking fee.

For U.S. live-event tickets and short-term lodging, the Federal Trade Commission's Rule on Unfair or Deceptive Fees took effect on May 12, 2025. When a covered business advertises a price, its most prominent price generally must include mandatory fees and charges, with exceptions for government charges and shipping charges.

The rule doesn't ban every service fee or set a universal percentage cap. Fees for restaurants, subscriptions, banking, software, and other services may be controlled by different federal or state rules, the contract, or company policy. This is general U.S. consumer information, not legal advice.

First, identify what the fee means

The label doesn't tell you whether a charge is mandatory or whether the FTC rule applies. Look at what happens at checkout:

• Mandatory fee: You have to pay it to complete the purchase. Add it to the advertised price when comparing offers.
• Optional add-on: An upgrade or extra service that you can decline should be identified as optional.
• Government charge: Government-imposed charges are an exception to the FTC rule's required total-price calculation, although you may still have to pay them.
• Shipping charge: Shipping is another exception identified by the rule. Include it in your own calculation of the final amount.
• Tip or gratuity: Check whether it's optional, automatically added, or covered by a separate disclosure.

For a covered transaction, a lower base price shouldn't be more prominent than the required total. The FTC's Rule on Unfair or Deceptive Fees FAQ describes the rule and its exceptions.

Which purchases does the FTC rule cover?

The rule covers businesses selling:

• Tickets to live events
• Temporary sleeping accommodations, such as hotel rooms, motel rooms, inns, short-term rentals, and vacation rentals

The FTC FAQ says prerecorded audio or visual performances and film screenings generally aren't live events under this rule. A mandatory fee attached to a hotel room or vacation rental may fall within the rule, but a fee in an unrelated industry isn't covered just because the business uses the same label.

The rule can apply to both consumer and business transactions within these categories. It doesn't replace other consumer protections that may apply elsewhere. For a restaurant surcharge, bank account fee, software charge, or delivery fee, check the rules and terms that apply to that service instead.

How to compare the real price

For your own budget, add every charge you must pay:

Base price
+ mandatory service or resort fee
+ other required seller charges
+ government charges
+ shipping, where applicable
= amount due

The FTC's required display has specific exceptions, but an excluded charge still affects your spending. Don't compare one seller's base price with another seller's checkout total.

Lodging example

A room advertised at $199 per night with a mandatory $39 resort fee has a room-and-resort-fee cost of $238 per night, before separately shown charges that may apply. The FTC uses a similar example in its FAQ.

Ticket example

Suppose a ticket starts at $80 and the purchase adds a mandatory $22 service fee and a $5 government charge. Your amount due before optional extras is $107.

For a covered ticket transaction, the $22 mandatory fee should be included in the prominent total. The government charge may be shown separately under the rule, but include it when comparing what you'll pay.

An itemized breakdown is useful. It shouldn't draw more attention than the all-in total or make the lower base price look like the main offer.

Member and promotional prices

A member or rewards-program price can make two offers look easier to compare than they really are. The FTC FAQ says that when a promotion is available only to some people, such as rewards-program members, the total price is the price offered to everyone.

Before relying on a promotional price, check:

1. Whether you're eligible
2. Whether joining costs money or creates a recurring charge
3. Whether the mandatory fee changes after the discount
4. Whether the price applies to every night, ticket, or item
5. Whether cancellation or expiration conditions apply

Save the terms shown when you purchase. Promotional banners and member offers can change after an order is complete.

What the rule does not do

The FTC rule is narrower than a general federal ban on "junk fees." By itself, it doesn't:

• Prohibit a business from charging a service fee
• Set one permitted percentage for every industry
• Require every service fee to be refundable
• Govern every online checkout, subscription, or delivery charge
• Replace state consumer-protection laws or industry-specific rules

So the ticket and lodging rule doesn't automatically answer a dispute about a bank fee, restaurant surcharge, software charge, or another unrelated service. The seller's contract and any applicable state or federal law may control those disputes.

What to do before paying

Use the checkout page to verify the amount, not just the first page where you saw the offer.

1. Review the final price. Look for the base amount, mandatory fees, government charges or taxes, shipping, and optional selections.
2. Ask about unclear fees. Find out whether the charge is required, what it covers, and whether you can avoid it.
3. Compare equivalent offers. For tickets, match the event, section, delivery method, and quantity. For lodging, match the dates, room type, taxes, and cancellation terms.
4. Read refund and cancellation terms. The FTC disclosure rule doesn't decide every refund question.
5. Save records. Keep the advertisement, checkout page, receipt, order number, and the date and time. Screenshots are useful if the listing later changes.
6. Pause if the amount changes. Don't complete the purchase until the seller explains an unexpected charge or you decide that the new total is acceptable.

If an advertisement shows an all-in price and a mandatory fee appears later during a covered purchase, save both versions. The change in the displayed price may matter more than the name given to the fee.

How to question an unexplained fee

Contact the business or platform that charged you. A written request creates a clearer record than a phone conversation alone. Include the order number, transaction date, advertised amount, charged amount, and the fee you want reviewed.

You can use a message like this:

Your listing showed a price of $X. At checkout or on my receipt, I was charged $Y, including a $Z service fee. Please explain when this fee was disclosed and provide an itemized statement of the amount charged. If the fee was not properly disclosed or the charge is incorrect, please correct the charge or explain your refund decision in writing.

Send copies of your evidence rather than irreplaceable originals. Ask the business to put its explanation and any approved refund in writing.

The FTC rule addresses price disclosures; it doesn't guarantee a refund after a complaint. Whether you can get money back may depend on the seller's terms, the transaction's status, and other applicable law.

Credit-card billing disputes

If the amount charged is wrong, differs from the agreed price, or reflects a fee that was misrepresented, it may fit the credit-card billing-error process. The FTC's guide to disputing credit-card charges says to notify the card issuer in writing so the dispute can be handled under the applicable process.

The FTC says written notice should reach the issuer within 60 days after the first bill containing the error was sent. It also says the issuer generally must acknowledge the dispute within 30 days, unless it has already been resolved, and resolve it within 90 days.

When you dispute the charge:

• Use the issuer's instructions for its billing-dispute address or online process.
• Identify the transaction, date, amount, and disputed fee.
• State what price was advertised and what you were charged.
• Include copies of the receipt, advertisement, and your messages to the seller.
• Keep a copy of everything you send and proof that the issuer received it.

These instructions concern credit-card billing errors. The same deadline or protections don't automatically apply to a debit card, prepaid card, ACH payment, wire transfer, or peer-to-peer payment.

A fee that seems excessive isn't automatically a billing error. Explain the specific price mismatch, incorrect amount, or misleading disclosure rather than only saying that the fee is too high.

When to report the business

If a seller repeatedly hides mandatory fees or advertises a misleading price, you can use the FTC's consumer complaint guidance. Complaints help the FTC and other agencies identify patterns, but filing one doesn't guarantee an individual refund.

For a state-law issue, check the consumer-protection office or attorney general in the state connected to the transaction. Deadlines and remedies vary. Preserve the advertisement, checkout record, receipt, and correspondence before contacting an agency.

Frequently asked questions

Does the FTC ban service fees?

No. The rule doesn't generally prohibit or cap fees. For covered live-event tickets and short-term lodging, it requires the most prominent advertised price to include mandatory fees and charges, subject to the rule's exceptions.

Does it cover every service fee?

No. It specifically covers live-event tickets and short-term lodging. Other fees may be governed by different laws, regulations, contracts, or company policies.

Can a seller list the base price and fee separately?

A truthful itemized breakdown is allowed in a covered transaction, but it shouldn't overshadow the all-in total required by the rule.

Are service fees always refundable?

No universal refund rule follows from the FTC disclosure requirement. Check the seller's cancellation and refund terms, then request an explanation in writing.

What if my credit-card charge includes an undisclosed fee?

Contact the seller and save the listing and receipt. If the charge is a billing error, notify the credit-card issuer in writing within the FTC's stated deadline, generally 60 days after the bill containing the error was sent.