What the FTC Rule Means for Live Event Ticketing
The new rule targets the bait-and-switch pricing tactics that have frustrated consumers for years—often referred to as “junk fees.” For live event organizers, this means every fee you can calculate upfront must be included in your advertised total price—and displayed more prominently than any other pricing information.
One key requirement: the advertised price (not just what’s shown at checkout) must reflect the total cost, including all unavoidable fees. If you’re promoting your event on social media, your fair website, or anywhere else, the price you advertise must be the full price.
Note: This article is provided for educational purposes only and should not be considered legal advice. Always consult qualified legal counsel for specific compliance guidance for your organization.
Key Requirements Every Ticketing Platform Must Follow
- Total Price Disclosure: Your advertised price must include all mandatory fees that are known and calculable in advance—such as processing or platform fees.
- Prominent Display: The total price must be the most noticeable pricing element on your site—larger and more prominent than any individual fee or subtotal.
- Clear Fee Descriptions: Vague terms like “service fee” or “convenience charge” no longer cut it. Customers must see a plain-language explanation of each fee.
- Pre-Payment Disclosure: Any fees not included in the total (such as government taxes or optional extras) must be clearly disclosed before the customer reaches payment.
The Right Way vs. The Wrong Way: Fee Transparency in Action
❌ What NOT to Do: Vague Fee Bundling
Many outdated platforms still display pricing like:
- “Admission + Fee: $40.25”
- “Ticket Price + Fees: $15.80”
This kind of pricing lacks the transparency the FTC now requires. The total price isn’t clear. The fees aren’t broken out or explained. Customers are left confused—and potentially misled. This approach undermines trust and likely does not meet compliance standards.
✅ What TO Do: Full Price with Fee Breakdown
FTC-compliant platforms break down and clearly disclose all costs. Here’s a more transparent format:
- Ticket Price: $15.00
- Platform Fee: $1.00
- Processing Fee: $1.38
- Total Price (Advertised): $17.38
What matters most: this total price must be shown as the primary advertised price wherever tickets are promoted. And each fee should be clearly itemized and labeled in checkout—not bundled vaguely under “fees.”
Why Fee Transparency Matters Beyond Compliance
- Customer Trust: When buyers understand what they’re paying for, they’re more likely to complete the purchase and come back again.
- Fewer Support Inquiries: Transparent pricing reduces questions and complaints about “mystery charges.”
- Stronger Brand: In an industry where hidden fees have become the norm, transparency becomes a competitive edge.
- Regulatory Protection: Following the rule helps protect your event from FTC investigations, penalties, and refund mandates.
Understanding Fee Categories and Violations
1. Mandatory Fees (Must Be Included in Advertised Total)
- Processing or payment fees (when no free alternative exists)
- Platform or technology fees
- Facility fees that can’t be opted out of
2. Optional or Excludable Fees (Must Be Disclosed Pre-Payment)
- Government taxes
- Shipping for physical tickets
- VIP upgrades, parking, or add-ons the customer can decline
3. Prohibited Practices (What to Avoid Entirely)
- Hidden fees revealed only at checkout
- Vague fee descriptions
- Pre-selected add-ons that raise the price
- Misleading or deceptive fee explanations
Questions Every Event Organizer Should Ask Their Ticketing Provider
- “Does your platform ensure compliance with the FTC’s pricing disclosure requirements?”
- “Do you break down every fee clearly and understandably?”
- “Is the total price displayed as the most prominent price throughout the ticketing flow?”
- “Can you show me an example of how fees appear in the final checkout and in ads?”
- “How does your platform help protect us from compliance risk?”
Best Practices for FTC-Compliant Ticketing
For Event Organizers:
- Review your current pricing and advertising setup
- Make sure all fees are disclosed—and the full price is used in all promotions
- Talk to your ticketing provider about their compliance measures
- Train staff to address customer questions about pricing
For Ticketing Platforms:
- Display the total price (including fees) as the main, advertised price
- Clearly explain what each fee is for
- Keep designs transparent and mobile-friendly
The Competitive Advantage of Transparency
Compliance with the FTC rules leads to favorable outcomes for your events. Events who do it right are likely to enjoy:
- Higher conversion rates and fewer abandoned carts
- Happier customers who know exactly what they’re paying for
- Stronger brand loyalty in an industry plagued by “junk fees”
- Confidence knowing their ticketing setup aligns with FTC guidelines
Looking Ahead: This Is About More Than Compliance
The FTC’s new rule reflects a larger truth: consumers are demanding fairness and clarity. If you’re still using a ticketing provider that hides fees or complicates pricing, you’re not just risking penalties, you’re losing trust.
Take Action: Evaluate Your Ticketing Partner
Here’s how to get started:
- Conduct an internal audit of your pricing practices and promotional materials
- Request a compliance overview from your current provider
- Test your customer experience from ad to checkout
- Compare with modern platforms built for transparency
- Consider switching to a provider like Fairs.com if your current provider falls short
The new FTC rule isn’t just a legal line to toe, it’s your chance to lead with honesty, build trust, and give customers the clarity they deserve. If you’d like even more depth information on this rule, we invite you to review the FTC’s FAQ page.
📩 Ready to ensure your ticketing platform meets the highest standards of transparency and compliance? Contact us to learn how our solution provides clear, FTC-compliant fee disclosure that builds customer trust while protecting your organization.
.png)
