FTC’s No-Fee Rule: How Transparent Pricing is Reshaping Marketing Strategy

On May 12, the FTC’s long-anticipated “Rule on Unfair or Deceptive Fees” officially went into effect, setting off a compliance scramble across industries. For sectors like hospitality, live events, rentals, and travel, this rule didn’t just tweak expectations—it redefined them. Marketers and product teams that have long relied on hidden fees or unclear add-ons are now facing a complete overhaul in how they communicate price and value to customers.

The End of Hidden Fees

At the core of the new regulation is a requirement that all mandatory fees must be included in the total price shown to consumers upfront. Whether it's a hotel room, a concert ticket, or a rental car, the price consumers see first must now be the final price they pay—no more last-minute “convenience” or “processing” fees buried in checkout flows.

This rule doesn’t ban all additional charges. Optional services like expedited shipping or premium upgrades can still be offered, but they must be presented clearly as add-ons before the customer reaches the payment stage. The FTC is making it clear: pricing must be transparent, straightforward, and consistent across all marketing, advertising, and checkout experiences.

Industries in the Hot Seat

While headlines have focused on ticketing giants like Ticketmaster, the rule’s scope is far broader. Companies in these industries are especially affected:

• Hotels and hospitality chains
  
  

• Vacation rentals (e.g., Airbnb, VRBO)
  
  

• Airlines and travel platforms
  
  

• Fintech and subscription-based services
  
  

• Event management and entertainment
  
  

Any business that has relied on drawing in customers with a low base price only to inflate the total cost later must now revisit their strategy.

What Marketers Must Do Now

This regulation moves fee transparency from a legal requirement to a marketing priority. It touches every aspect of customer engagement, from creative direction to user experience and support.

1. Rebuild Creative Assets
Marketing content that highlights base pricing—like display ads, email subject lines, and social posts—must now reflect the total price. Creative teams are finding they need to update or retire entire content libraries.

2. Redesign Pricing UX
The visual hierarchy of pricing on websites and mobile apps must show total price clearly and prominently. If the total cost is smaller, grayed out, or only visible several clicks in, that’s a likely violation.

3. Create Cross-Functional Approval Workflows
Legal, product, and marketing must now work hand-in-hand. Every touchpoint—from landing pages to ad copy—must be reviewed for compliance before launch.

4. Train Frontline Teams
Customer support, sales, and community managers need to understand the rule and how your company is responding. Consistency in language and transparency is now a frontline expectation.

5. Use Clear, Specific Language
Vague fee descriptions like “service charge” won’t cut it anymore. Be explicit about what each fee covers and why it’s necessary.

6. Conduct a Full Pricing Audit
Reiew all pricing disclosures across channels:

• Landing pages
  
  

• Paid ad campaigns
  
  

• Product listings
  
  

• Checkout flows
  
  

• Customer receipts and confirmations
  
  

7. Watch Competitors Closely
Monitor how others in your industry are adapting. Some may lean into transparency and use it as a brand differentiator, while others may drag their feet and face enforcement.

The Compliance Penalty Isn’t Just Financial

The FTC has made clear this is not just guidance—it’s enforceable law. Companies in violation can face:

• Substantial fines
  
  

• Refund requirements
  
  

• Public investigations
  
  

• Long-term brand damage
  
  

State attorneys general are also starting to use the federal rule as a model for local enforcement, meaning non-compliance could open companies up to further legal action.

Why Transparency Can Be a Competitive Edge

Many companies are treating this rule as a burden. But early adopters are seeing an upside. Transparent pricing reduces confusion, builds trust, and often improves conversions. Customers are more likely to complete purchases—and stay loyal—when they feel they’re being dealt with honestly.

Brands that embrace this new standard, rather than resist it, may find themselves in a stronger position. Transparent pricing isn’t just a legal requirement; it’s a new expectation from consumers. And companies that exceed that expectation may be rewarded not just with compliance—but with long-term trust and growth.