The Federal Trade Commission revealed a new rule December 17 that addresses "junk fees" that consumers sometimes are surprised with at checkout when purchasing live event tickets or booking short-term lodging. The rule requires that such fees be disclosed upfront. The measure, which is set to go into effect in 120 days, is aimed at what the FTC is calling "specific and widespread unfair and deceptive pricing practices."

But will this new rule affect Broadway tickets?

No—because New York State passed its own similar legislation in 2022. That measure, signed by Governor Hochul, banned hidden fees and established penalties for the use of scalper bots and ticket purchasing software, along with outlawing the sale of free tickets and delivery fees on electronic tickets. In this case, New York's legislation actually extends well beyond this new FTC rule.

What will change once the rule is in effect is that those consumer protections will extend to regional theatres and national touring venues nationwide, regardless of states' own legislation or lack thereof. The measure notably does not ban fees, but looks to prevent them becoming unwelcome surprises late in the purchasing process. The rule also ensures that Broadway tickets will continue to be subject to this regulation even if New York State ever decides to change its own legislation.

“People deserve to know up-front what they’re being asked to pay—without worrying that they’ll later be saddled with mysterious fees that they haven’t budgeted for and can’t avoid,” says FTC Chair Lina M. Khan in a statement. “The FTC’s rule will put an end to junk fees around live-event tickets, hotels, and vacation rentals, saving Americans billions of dollars and millions of hours in wasted time. I urge enforcers to continue cracking down on these unlawful fees and encourage state and federal policymakers to build on this success with legislation that bans unfair and deceptive junk fees across the economy.”