For years, guests saw one nightly rate on a search page and a much higher total at checkout. A federal rule now addresses that for short-term lodging. The Federal Trade Commission’s Rule on Unfair or Deceptive Fees took effect on May 12, 2025. This guide explains what it means for guests booking vacation rentals and what it does not cover. It is general information, not legal advice.
Key takeaways
- The FTC’s Rule on Unfair or Deceptive Fees has applied to short-term lodging since May 12, 2025.
- Businesses that show lodging prices must show the total price, including mandatory fees, upfront and more prominently than other price information.
- Government taxes and optional add-ons can still be shown separately, but must be disclosed before you pay.
What the rule covers
According to the FTC, the rule covers short-term lodging, including hotels, motels, inns, short-term rentals, vacation rentals and home shares, along with live-event tickets. It applies to businesses that include pricing information in their ads and offers. For guests, that includes booking sites and hosts who advertise prices.
What must be shown
The FTC says a business that advertises a price for short-term lodging must tell people upfront the total price they will pay, including all charges or fees the business knows about and can calculate, such as mandatory fees for goods or services you have to buy as part of the booking. The total price must be displayed more prominently than other pricing information, except the final amount of payment.
What can be left out of the total
According to the FTC, businesses may leave three kinds of charges out of the total price: government charges such as taxes, shipping charges and fees for optional goods or services you choose to add. These excluded charges still have to be clearly disclosed before you are asked to pay, including what they are for and how much they cost.
Before and after the rule
| Drip pricing (what the rule targets) | Total price display | |
|---|---|---|
| First price you see | Nightly rate only | Total with mandatory fees |
| Cleaning and service fees | Added at later steps | Included upfront if mandatory |
| Taxes | Added later | May still be shown separately, disclosed before payment |
| Optional extras | Added later | Can be added by choice, disclosed before payment |
What this means when you compare
The rule makes it easier to compare rentals, but the numbers you see may still differ in what they include. One listing’s total might exclude taxes; another booking system might show taxes too. Always compare final amounts at the last step before payment, and check whether optional extras have been pre-selected.
Tip: Take a screenshot of the price breakdown before you pay. If the charge on your card later differs, you will have a clear record of what you were shown.
What the rule does not do
- It does not cap how much hosts or booking sites can charge.
- It does not ban cleaning or service fees; it requires them to be included in the advertised total if mandatory.
- It does not cover charges that arise later, such as damage claims.
- It does not replace state or local laws, which may add their own rules.
If you think a price was deceptive
Start by contacting the host and the booking platform with your screenshots. If you believe a business broke the rule, you can report it to the FTC at ReportFraud.ftc.gov. The FTC uses reports to spot patterns, though it does not resolve individual complaints. If you paid by credit card and were charged incorrectly, see How to Dispute a Vacation Rental Charge.
Booking directly with a host or manager
The rule applies to businesses that advertise lodging prices, not only to large booking sites. Property managers and hosts who advertise on their own websites are also expected to show total prices with mandatory fees. If you book directly, ask for a written breakdown of every charge before paying, and compare it with the price you saw in the advertisement.
State and local rules
Some states and cities have their own rules on how lodging prices and fees must be shown, and local lodging taxes vary widely. These can add to, but not reduce, the protections in the federal rule. If you are unsure about a charge, the state attorney general’s consumer protection office is a good place to ask.
Common mistakes
The most common mistake is assuming the first price shown includes everything, even now. Taxes and optional add-ons can still appear at the end. Another is not noticing pre-selected extras such as insurance or early check-in. Review the final breakdown line by line before paying.
Frequently asked questions
When did the FTC fee rule take effect?
May 12, 2025.
Does the rule ban cleaning fees?
No. Mandatory fees must be included in the total price shown upfront, but they are not banned.
Are taxes included in the total price?
Not necessarily. Government charges can be shown separately, but they must be disclosed before you pay.
For what each fee is for, read Common Vacation Rental Fees Explained.