The FTC’s Rule on Unfair or Deceptive Fees and What It Means For Clubs

On May 12, 2025, the Federal Trade Commission’s (FTC) Rule on Unfair or Deceptive Fees went into effect. This rule prohibits advertising, displaying, or offering a total price for live-event tickets (think concerts and sporting events) and short-term lodging costs that misleads people about the actual total charge. While most private clubs don’t have overnight accommodations, those that do could be impacted by this rule moving forward.

Key Compliance Requirements:

To comply with the FTC, club leaders must now include all mandatory fees and/or charges in the total price advertised, displayed or offered for a room. This means little can be left out of the total price of a room — including things like resort fees or even credit card service fees (if the only payment option is through a credit card — like when booking online). Though almost everything must be included in the total price, government taxes and the fees for optional services (e.g., spa services) may be added later. However, the amount of those charges must be disclosed clearly and conspicuously along with their nature, purpose, and identity. Finally, the rule mandates that the total price should be displayed more prominently than the government taxes and optional service fees. When it is all combined, the final price must be displayed as prominently as the initial total price. Yes, this rule is saying you must use different font sizes for different listed charges and the final price.

Considerations for Corporations:

In 1999, the U.S. Supreme Court took a look at this issue and decided that some nonprofits could be covered by the FTC. Over the years, a two-factor test has emerged that can assist nonprofits as they determine whether the FTC applies to them. The test asks: the nature and character of the activities which create profit, and how the nonprofit uses and disposes of that profit. Under this test, a city club that makes a profit and competes with local hotels might come under scrutiny and could be covered by the FTC. With this question of the FTC’s applicability to private clubs still out there and with most club leaders likely not interested in being a test case for our industry, it seems wise for clubs to be a bit cautious with this new rule – especially if that club is making money. Therefore, the most prudent approach for club leaders with overnight rooms might be to comply with this new FTC rule rather than expose their club to potential liability. As always, I’m happy to help you or your team if there are questions

This article was originally written by Brad Steele, J.D., founder of Private Club Consultants, and shared for the benefit of HFTP club members and stakeholders.