FTC Junk Fees Rule: Upfront Total Pricing and Fee Disclosure Requirements
Reference for the U.S. Federal Trade Commission's rule on unfair or deceptive fees ("junk fees"). Sellers must disclose the total price upfront and cannot mislead consumers with hidden or surprise fees; optional fees require clear disclosure before they are added.
This is a regulated fee — required or governed by law in the jurisdictions below.
Overview
In 2024 the Federal Trade Commission adopted a rule targeting unfair or deceptive practices involving fees. Key requirements: (1) disclose the total price clearly and prominently upfront (not just a base price plus fees revealed later); (2) do not misrepresent that fees are required if they are optional; (3) disclose optional fees clearly before the consumer agrees to them. The rule reinforces that mandatory fees (e.g. regulatory fees) must be included or clearly disclosed in the total price; optional add-ons (e.g. optional surcharges) require explicit consent. E-commerce and checkout flows must present totals and fee breakdowns in a way that is not deceptive. This directly affects how apps like Magical Fees display fees at checkout.
Fee schedule by jurisdiction
1 jurisdiction with active fee requirements.
| Jurisdiction | Fee |
|---|---|
| United States (federal) | N/A — disclosure and fairness requirement |
United States (federal)
N/A — disclosure and fairness requirement
All sellers offering goods or services to U.S. consumers
Total price must be disclosed upfront; optional fees clearly disclosed before being added. Rule effective after publication in Federal Register.
Enforcement
Violations can result in FTC enforcement, civil penalties, and restitution. State attorneys general may also enforce in some cases.
Official sources
Shopify compliance
This is a mandatory fee — merchants selling in covered jurisdictions are legally required to collect it. Shopify requires that mandatory fees be clearly disclosed to customers before checkout. Use a Shopify app like Magical Fees to automate collection and ensure compliance.
This information is maintained by the Magical Apps team and reviewed semi-annually. Always consult official government sources for the most current requirements.
Quick facts
- Regulation
- FTC Rule on Unfair or Deceptive Fees
- Country
- United States
- Jurisdictions
- 1
- Category
- Regulatory Surcharges
Explore U.S. FTC Junk Fee Rule and Fee Transparency in practice
See how to automate this fee on Shopify and browse other regulations in this category.
Related use cases
Set up with Magical Fees on Shopify.
More regulatory surcharges
Other regulations in this category.
Australian Payment Method Surcharges
Australia allows payment method surcharges but caps them at the merchant's actual cost of accepting that payment type. The ban on excessive surcharges applies to Visa, Mastercard, and EFTPOS; American Express, PayPal, and BPAY are not regulated. The ACCC enforces compliance.
View fee schedule →CanadaCanadian Payment Method Surcharges
In Canada there is no federal ban on payment method surcharges. Merchants commonly add surcharges for credit card, PayPal, Klarna, and other alternative payment methods with clear disclosure. Card network and payment provider rules apply.
View fee schedule →GermanyGermany Payment Surcharge Rules
Under EU PSD2 and the Interchange Fee Regulation, merchants in Germany cannot add surcharges on card-based payments (debit and credit cards). Surcharges on PayPal, Klarna, and other payment methods not covered by the card surcharge ban are not prohibited at EU level; merchants may add them with clear disclosure where permitted by German consumer law.
View fee schedule →SpainSpain Payment Surcharge Rules
Under EU PSD2 and the Interchange Fee Regulation, merchants in Spain cannot add surcharges on card-based payments (debit and credit cards). Surcharges on PayPal, Klarna, and other payment methods not covered by the card surcharge ban are not prohibited at EU level; merchants may add them with clear disclosure where permitted by Spanish consumer law.
View fee schedule →European UnionEU VAT for E-Commerce (OSS and IOSS)
Reference for EU VAT rules for e-commerce: the One-Stop Shop (OSS) for distance sales within the EU and the Import One-Stop Shop (IOSS) for low-value imports (consignment value ≤ €150). Non-EU sellers must register and charge VAT; merchants often display it as a separate line at checkout.
View fee schedule →FranceFrance Payment Surcharge Rules
Under EU PSD2 and the Interchange Fee Regulation, merchants in France cannot add surcharges on card-based payments (debit and credit cards). Surcharges on PayPal, Klarna, and other payment methods not covered by the card surcharge ban are not prohibited at EU level; merchants may add them with clear disclosure where permitted by French consumer law.
View fee schedule →Ready to get started?
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