Unfair or Deceptive Fees

Forms and Documents

Document Name	Status
2025-01-02 Junk Fees PRA Supporting Statement FINAL.pdf Supporting Statement A	2025-01-02

IC Document Collections

IC ID	Document Title	Status
263246	Disclosures (Web Developer)	Modified

ICR Details

OMB Control No: 3084-0176	ICR Reference No: 202409-3084-001
Status: Received in OIRA	Previous ICR Reference No: 202311-3084-001
Agency/Subagency: FTC	Agency Tracking No:
Title: Unfair or Deceptive Fees
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 01/10/2025

	Requested	Previously Approved
Expiration Date	36 Months From Approved
Responses	12,393	0
Time Burden (Hours)	743,580	0
Cost Burden (Dollars)	0	0

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Abstract: The Federal Trade Commission (“FTC” or “Commission”) is promulgating a trade regulation rule titled Rule on Unfair or Deceptive Fees under the authority of section 18 of the Federal Trade Commission Act, (“FTC Act”), 15 U.S.C. 57a(b)(2), which grants the FTC the authority to promulgate, modify, or repeal trade regulation rules that define with specificity acts or practices that are unfair or deceptive in or affecting commerce within the meaning of section 5(a)(1) of the FTC Act, 15 U.S.C. 45(a)(1). The final rule includes disclosure obligations that, under certain circumstances, may constitute a collection of information for the purpose of the PRA. Specifically, final § 464.2(a) provides it is an unfair and deceptive practice for a business to offer, display, or advertise any price of a covered good or service—defined to consist of live-event tickets and short-term lodging—without clearly and conspicuously disclosing the total price, which is defined in final § 464.1 to permit the exclusion of government charges, shipping charges, and fees or charges for any optional ancillary good or service. While businesses may exclude these charges from total price in offers, displays, and advertisements, final § 464.2(c)(1) provides that, before a consumer consents to pay, a business must disclose clearly and conspicuously (i) the nature, purpose, and amount of any fee or charge imposed on the transaction that has been excluded from total price and the identity of the good or service for which the fee or charge is imposed and (ii) the final amount of payment for the transaction. Final § 464.2(b) relatedly provides that total price must be disclosed more prominently than any other pricing information; however, where the final amount of payment for the transaction is displayed, it must be more prominent than, or as prominent as, total price.

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Authorizing Statute(s): US Code: 15 USC 57a Name of Law: Federal Trade Commission Act
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
3084-AB77	Final or interim final rulemaking	90 FR 2066	01/10/2025

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? Yes

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Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Disclosures (Web Developer)

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ICR Summary of Burden

	Total Request	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	12,393	0	0	12,393	0	0
Annual Time Burden (Hours)	743,580	0	0	743,580	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Changing Regulations

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: The NPRM required disclosures of “the nature and purpose of any amount a consumer may pay that is excluded from Total Price, including the fee’s refundability and the identity of the good or service for which the fee is charged.” As discussed in Section III of the SBP, the Commission responded to comments about the disclosure requirements by modifying the language for clarity and to reduce the burden that the refundability disclosure requirement may have imposed on some businesses. The final rule requires disclosure of (i) the nature, purpose, and amount of any fee or charge imposed on the transaction that has been excluded from the total price and the identity of the good or service for which the fee or charge is imposed, but not the fee’s refundability; and (ii) the final amount of payment for the transaction. In addition, the overall scope of the final rule is significantly narrower than the proposed rule. The NPRM’s proposed disclosure requirements were industry neutral. Although the Commission found that bait-and-switch pricing, including drip pricing, and misleading fees and charges are prevalent and worsening across industries, the Commission declined to adopt such an industry-neutral final rule. Instead, it chose, in its discretion, to narrow the scope of the final rule to offers, displays, or advertisements for live-event tickets and short-term lodging. As discussed in Section II of the SBP, the Commission is first targeting the two industries where it first began evaluating drip pricing more than a decade ago and where consumer harm has been longstanding and continues to be pronounced.

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Annual Cost to Federal Government: $211,951

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? No

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 01/10/2025

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