States crack down on ‘junk fees’ as regulators target hidden costs and drip pricing
States are expanding “all-in pricing” rules aimed at forcing businesses to disclose mandatory fees upfront rather than surprising consumers at checkout
As consumers grapple with rising prices and affordability pressures, regulators at both the federal and state level are intensifying efforts to crack down on so-called “junk fees” — extra mandatory charges that often appear late in the buying process.
The growing wave of enforcement and legislation targets pricing practices commonly known as “drip pricing,” in which businesses advertise a lower base price and then add mandatory fees later in the transaction. Common examples include service fees, convenience fees, resort fees, and handling charges.
While the term “junk fees” has become a political buzzword in recent years, state attorneys general have long used consumer protection laws to challenge allegedly deceptive pricing practices. What has changed is the scale and specificity of new laws requiring businesses to display the full mandatory price earlier and more clearly to consumers.
Feds step up
Federal regulators have ramped up pressure in recent years. Under the Biden administration, the Federal Trade Commission finalized a rule targeting unfair or deceptive fees in industries including live-event ticketing and short-term lodging. The rule, which took effect during the Trump administration in 2025, requires companies to prominently display the total price — excluding taxes — upfront and throughout the purchasing process.
The FTC’s rule also requires businesses to clearly disclose additional charges such as shipping, taxes, or optional add-ons before consumers reach the final payment screen. Regulators argue the goal is to prevent consumers from being lured by artificially low advertised prices that do not reflect the true unavoidable cost.
The issue has drawn bipartisan attention.
President Trump signed an executive order in March 2025 focused on “Combating Unfair Practices in the Live Entertainment Market,” directing the FTC to strengthen price transparency in ticket sales and target deceptive ticketing practices.
At the same time, states have adopted a growing patchwork of laws governing price disclosures.
Broad “all-in pricing” statutes or regulations have been enacted in states including California, Colorado, Connecticut, Massachusetts, Minnesota, Oregon and Virginia. Other states have focused more narrowly on industries such as live-event ticketing or hospitality.
Trouble spots targeted
The enforcement push has increasingly focused on sectors where regulators say hidden fees are widespread.
Hotel chains and online booking platforms have faced scrutiny over resort fees and other mandatory charges allegedly buried in checkout pages rather than included in advertised room rates. Food delivery companies have also been targeted for allegedly obscuring delivery and service fees until late in transactions.
The live-event ticketing industry has become a major battleground.
The FTC recently secured a $10 million settlement with StubHub over allegations that the company advertised ticket prices without mandatory fees and failed to clearly disclose total costs to consumers during a high-volume NFL ticket sales period in 2025.
Meanwhile, the FTC and several states continue pursuing litigation against Live Nation Entertainment and Ticketmaster over alleged deceptive ticket-pricing practices. The companies deny wrongdoing and have moved to dismiss portions of the case.
Consumer advocates say hidden fees can distort comparison shopping and undermine household budgeting at a time when many Americans are already strained by inflation, rising housing costs, insurance premiums, and debt payments.
Regulators increasingly argue that consumers should be able to see the true unavoidable cost of a product or service before investing time in a purchase process.
Despite differences among state laws, regulators appear united around one core principle: the full mandatory price should be disclosed clearly and early.
Businesses now face a rapidly evolving compliance landscape as states adopt differing definitions of mandatory fees, disclosure timing requirements, and rules about what must be included in advertised prices. Companies operating nationwide may have to navigate multiple overlapping legal standards.
What regulators expect businesses to disclose
Regulators are increasingly focused on whether businesses:
Clearly display the full mandatory price upfront
Include mandatory fees in advertised prices
Identify optional or waivable fees separately
Disclose shipping, taxes, and government fees before checkout
Avoid hiding charges in vague “taxes and fees” categories
Affordability Watch
Consumer groups say drip pricing can make already-expensive purchases feel even less transparent for households trying to budget carefully.
Hidden fees are especially common in sectors where consumers may feel locked into a purchase late in the transaction process — such as airfare, hotels, concert tickets, and food delivery — reducing the likelihood that shoppers will abandon the purchase once additional charges appear.