U.S. hotel price advertising changed significantly when the Federal Trade Commission’s Rule on Unfair or Deceptive Fees took effect on May 12, 2025. Hotel fee disclosure laws now include a federal rule requiring businesses that advertise prices for short-term lodging to show the total price including mandatory fees they know and can calculate upfront.
The rule covers hotels and other forms of short-term lodging, as well as third-party sellers and travel platforms.
What Must Be Included in the Displayed Price?
Mandatory charges generally belong in the upfront total price. The FTC specifically gives the example of a hotel advertising a nightly rate plus a mandatory resort fee: the required resort fee must be included in the displayed total price.
The federal rule does not ban resort fees or impose a particular maximum fee. Its focus is on truthful, prominent price disclosure.
Travelers comparing prices through general digital resources should therefore concentrate on the displayed mandatory total rather than assuming a prominent base rate represents the entire lodging charge.
Total Price Must Be Prominent
The FTC requires the total price to be displayed more prominently than most other pricing information, with an exception for the final amount of payment.
A business also cannot misrepresent a fee’s nature, amount, purpose, or other material characteristics. The Commission has continued enforcing the rule in the travel sector, including a 2026 case alleging deceptive fees connected with travel bookings.
Which Charges May Be Shown Later?
Certain amounts do not have to be incorporated into the initially displayed total price. FTC guidance identifies government charges and optional goods or services among the categories that may be disclosed later, subject to the rule’s requirements.
Excluded charges still must be clearly disclosed before the customer is asked to pay, including their nature, purpose, and amount.
Businesses reading general commercial publications should not assume that calling a fee “optional” settles the matter. A charge consumers cannot reasonably avoid may still qualify as mandatory under the federal rule.
| Charge | Upfront Treatment | General Example |
|---|---|---|
| Mandatory resort fee | Include in total | Required nightly amenity fee |
| Required cleaning fee | Include in total | Mandatory lodging charge |
| Government tax | May be excluded initially | Lodging tax |
| Optional service | May be separate | Guest-selected add-on |
Third-Party Booking Sites Are Covered Too
The rule is not limited to the hotel that owns or operates the property. FTC guidance says businesses offering, displaying, or advertising covered short-term lodging can include third-party platforms, resellers, and travel agents.
That matters because consumers often compare a hotel site with travel platforms and general finance-oriented reading before booking. The party displaying the lodging price should evaluate its own obligations instead of assuming the hotel alone bears responsibility.
What Businesses Often Misunderstand
One error is believing the rule requires every tax and conceivable optional purchase to appear inside the first advertised number. It does not.
The opposite error is more serious: displaying a low base rate while adding an unavoidable resort, service, or similar mandatory charge later. The FTC’s rule was designed specifically to address hidden mandatory charges and misleading total-price presentations.
When Should a Fee Dispute Be Escalated?
Consumers should preserve screenshots showing the advertised price, checkout totals, confirmations, and receipts when a mandatory charge appears unexpectedly.
Businesses facing repeated complaints or uncertainty about whether a charge is mandatory should review the current FTC rule and applicable state pricing laws. Complaints about deceptive fee practices may also be reported to appropriate consumer-protection authorities.
Frequently Asked Questions
Are resort fees now illegal?
No. The federal rule does not categorically prohibit resort fees. It requires mandatory fees to be reflected in the upfront total price and prohibits misrepresentations concerning fees and charges.
Do hotel taxes have to appear inside the first total price?
Government charges may generally be excluded from the initially displayed total under the FTC rule, but excluded amounts must be properly disclosed before the consumer is prompted to make the final payment.
Does the federal fee rule cover online travel agencies?
Yes. FTC guidance says covered sellers include third-party platforms, resellers, and travel agents that offer, display, or advertise covered short-term lodging.
Make the Real Price Clear From the Start
A hotel’s advertised number should allow a customer to make a meaningful price comparison without discovering unavoidable private fees only near checkout.
Current hotel fee disclosure laws make upfront total-price presentation a central federal compliance issue for short-term lodging, while state consumer-protection rules may impose additional requirements.
This article provides general legal information and is not a substitute for advice from a qualified attorney regarding a specific situation.
