The FTC’s long-awaited Final Rule on Unfair or Deceptive Fees went into effect on May 12, 2025. The Final Rule seeks to eliminate “bait and switch” or “drip” pricing and instill transparency in connection with the offering of live ticketing events and short-term lodging. The Final Rule builds on certain state pricing transparency laws, such as those in effect in California and Minnesota, whose requirements apply to transactions beyond those identified by the FTC.
The New York Law Journal (subscription required) published an article authored by Andrew Lustigman and Morgan Spina titled "Deceptive Pricing: Unlawful Trickery or Skillful Selling?"
Deceptive pricing/sales practices continue to be at the forefront of state regulators and private plaintiffs. The New York Attorney General’s recent $500,000 settlement with leading drug store retailer Walgreens/Duane Read involving allegations of such practices sends a strong message to retailers to verify that their pricing and sales practices are consistent with federal and state law.
Luxury retailers Burberry and Coach were the latest retailers to be hit with class action lawsuits involving accusations of deceptive pricing and discount advertising of merchandise sold at their outlet stores. The lawsuits are part of a growing trend focusing on allegations of deceptive outlet and discount store comparative pricing.