The simple version

There is a federal rule about charges that only surface at the end, and it is far narrower than its nickname suggests. It reaches two industries.

Where it does apply, the seller has to put the full amount in front of you up front, and show it more prominently than any other figure.

Three kinds of charge are allowed to sit outside that amount. Everything else has to be inside it.

The numbers

• The rule is at 16 CFR Part 464 and the guidance states it is effective May 12, 2025 (Federal Trade Commission, Rule on Unfair or Deceptive Fees frequently asked questions, read October 13, 2026)
• The guidance describes itself as FTC staff's view of the rule's requirements and states that it is not binding on the Commission (same page)
• The guidance states the rule covers any business that offers, displays, or advertises live-event tickets or short-term lodging (same page)
• The guidance states that pre-recorded audio and visual performances and film screenings are generally not live events covered by the rule (same page)
• The guidance states that long-term or other rental housing involving an ongoing landlord-tenant relationship is excluded (same page)
• The guidance states a business must display the total price more prominently than other pricing information, apart from the final amount payable (same page)
• The guidance states businesses may exclude only three categories from the total: taxes or other government charges, shipping charges, and charges for optional goods or services the buyer may select (same page)
• The guidance states a business must describe what its fees are for and avoid vague phrases such as "convenience fees," "service fees," or "processing fees" (same page)
• The guidance states businesses may charge or pass through credit card or other payment processing fees if otherwise permitted by law (same page)
• Scope note: the guidance page does not describe the rule as prohibiting any particular charge or as capping any amount, apart from stating that shipping charges must reasonably reflect a business's costs to ship physical goods. This article asserts nothing beyond what the page states. The page is dated May 2025

Where the rule reaches, and where it stops

Two industries are named. Admission to a live event, and lodging booked for a short stay. A business that offers, displays or advertises either one is inside it.

The guidance also names things that fall outside, including pre-recorded performances and film screenings, which it says are generally not live events. Housing let on a continuing basis is outside it too.

So most of what a household pays for in a month is not reached by this rule at all. That is the part the nickname hides.

The actual list of three exclusions

Only three categories may sit outside the total. They are charges imposed by government, the cost of getting the item to you, and optional extras the buyer chooses to add.

Everything else belongs inside the amount shown up front, and that amount has to be more prominent than any other price apart from the final sum payable.

The guidance also states that payment processing charges may be charged or passed through where other law permits it. So this rule is not the thing that settles whether a card charge is allowed.

What this means

The nickname does a lot of work that the rule does not. It is a disclosure rule about when and how prominently a total appears, and how its fees are described, in two industries.

Outside those two, a charge that annoys you at the end of a purchase is not governed by this rule, whatever it is called.

Inside them, the useful habit is to compare the first number you see against the last one. If they differ by more than government charges, shipping, or something you chose to add, that is worth a question.

What this is NOT

This article explains what the Federal Trade Commission's own guidance says about the Rule on Unfair or Deceptive Fees at 16 CFR Part 464, from the agency's frequently asked questions page read on October 13, 2026. It is not legal advice and it is not a statement of anyone's rights or obligations. It takes no position on whether the rule should exist, should be broader, or should be narrower. Everything stated about the rule's scope and requirements is drawn from that guidance page rather than from the rule text itself, and the page describes itself as staff's view that is not binding on the Commission, so where the two might differ the rule governs and this article does not resolve it. The guidance page does not describe the rule as prohibiting any particular charge or as capping any amount, apart from stating that shipping charges must reasonably reflect a business's costs, and this article makes no further claim in either direction. The page is dated May 2025, and the article names no state law and no other federal rule that may apply to fees. This is not a political endorsement or criticism of anyone.

Sources

• Federal Trade Commission, "The Rule on Unfair or Deceptive Fees: Frequently Asked Questions," business guidance, dated May 2025, read October 13, 2026