Hidden Fees Hurt More Than Just Your Reputation

Apr 24

Why the FTC’s New Rule Isn’t Just for Hotels & Tickets—and What All Service Businesses Can Learn From It

“We’ve heard it loud and clear from tens of thousands of people: hidden and misleading fees, also known as junk fees, hurt consumers and businesses.” — Federal Trade Commission

The FTC just dropped a bipartisan rule banning junk fees in ticketing and short-term lodging—and the message is clear:
Transparency isn’t optional anymore. It’s what customers expect—and what businesses need to survive.

But even if you're not selling concert tickets or vacation rentals, this should be a wake-up call.

🎯 Hidden Fees = Lost Trust

As consumers, we’ve all been there:

An event ticket goes from $50 to $82 at checkout.
A vacation rental with a $99 cleaning fee you didn’t see coming.
A decor quote that balloons after “setup,” “delivery,” or “balloon inflation” is added later.

It feels like a bait-and-switch—and it kills confidence.

The FTC calls it what it is:

“Bait-and-switch pricing” and tactics that “misrepresent total prices.”

For small service-based businesses, especially in the event space, this is more than just bad optics—it’s bad business.

🧨 What Can Hidden Fees Cost You?

A client you almost booked
A bad review about being “misleading”
A refund request when they realize the invoice doesn’t match the quote
A rep for being hard to trust—even if your work is top-notch

The truth? Most clients don’t mind paying for your time, delivery, or setup—they just want to know about it upfront.

💡 Fanfaire Was Built With Transparency at the Core

Before this rule ever passed, we knew:
People want clarity, not surprises.

That’s why Fanfaire’s Digital Storefront shows clients:
✅ Live pricing as they customize
✅ Clear catalog options with pre-tagged upgrades
✅ No hidden fees, no guessing, no ghosting

It builds trust and protects your margins—because the pricing structure is visible, visual, and client-driven.

“Junk fees send clients running. Transparency brings them in.”

🛠️ Your Takeaway (Even If You Don’t Sell Tickets or Rooms)

Even if this rule doesn’t directly apply to your business, the principle does:
Transparent pricing is no longer a nice-to-have. It’s how you build a brand people come back to—and refer.

If you're still sending static quotes or hiding fees behind vague language, now’s the time to rethink it.

Want to learn how to create a pricing strategy that’s transparent and profitable?
🎓 Join our free workshop: Pricing on Fanfaire
📅 Wednesday, April 30 | 🕘 9am PST
📍 skool.com/fanfaire