Scope Mapping: Where the Rule Applies and Who’s Covered
Understanding coverage boundaries
The FTC Junk Fees Rule reached finalization in December 2024 and took effect May 12, 2025. It applies to any business entity—corporations, franchises, partnerships, sole proprietors, or platforms—offering, marketing, or displaying prices for:
- Short-term lodging: hotels, motels, inns, vacation rentals, and platforms like Airbnb or VRBO.
- Live-event tickets: concerts, sports events, theater, and ticketing platforms.
The rule does not extend to long-term housing, sectors like auto sales, internet services, or food delivery, which remain under general FTC authority but not the Junk Fees Rule itself
FTC: Getting to the Bottom Line – Junk Fees Rule and Your Business.
Effective date: All covered businesses must comply for transactions offered after May 12, 2025
FTC: Rule Announcement Press Release.
Scope mapping: Hypothetical example
A hypothetical regional hotel chain operates both nightly rental and month-to-month stays. The nightly hotel and all Airbnb units are covered; extended 6-month apartments are not. Its subsidiary ticketing site for local venues is also covered. Its in-house cafeteria is not, but its “event ticket with dinner” bundle is.
