Navigating State Fee Disclosure Requirements in a Shifting Enforcement Landscape

State laws governing fee disclosure requirements have expanded rapidly, tightening transparency expectations and reshaping compliance obligations across multiple industries. In their article for Wiley, Duane C. Pozza, Ian L. Barlow, and Ania Trichet outline how these “junk fee” or “drip pricing” laws generally prohibit advertising a base price without clearly disclosing mandatory fees. 

The article notes that state Attorneys General have elevated enforcement, often coordinating with federal regulators. The result is a more complicated compliance landscape that varies widely by state and affects sectors such as travel, telecommunications, lodging, and ticketing.

The authors explain that federal activity helped lay the groundwork for these changes. The Federal Trade Commission’s rulemaking process, initially broad in scope, ultimately produced a narrower 2024 rule covering only live-event ticketing and short-term lodging. This rule requires businesses to incorporate all mandatory fees into advertised prices, excluding government taxes and shipping. States built on this momentum, adopting both targeted and wide-ranging laws that require upfront disclosure of mandatory charges.

The patchwork nature of these fee disclosure laws is a critical challenge. Pozza, Barlow, and Trichet say that while some states mirror the FTC’s approach, others, such as Massachusetts, require disclosure of the full maximum price a consumer may pay, regardless of whether specific charges are avoidable. Exemptions also differ, with states taking varied approaches toward telecommunications, hotels, and short-term lodging. Even where exemptions exist, the authors emphasize that general unfair and deceptive acts and practices laws remain fully applicable, illustrated by recent enforcement actions in Texas and Connecticut.

Compliance teams should closely track evolving state requirements, confirm which rules apply in each jurisdiction, and regularly reassess pricing and disclosures to reduce enforcement and litigation risk in this increasingly active regulatory environment.