Junk Fees and Hidden Charges Consumer Refund Guide 2026: FTC Rule, State Laws, Settlements, and How to Get Your Money Back

The FTC's Rule on Unfair or Deceptive Fees — commonly called the Junk Fees Rule — took effect on May 12, 2025 and is now being actively enforced. In April 2026, the FTC announced a $10 million settlement with StubHub for violating the rule just days after it took effect. Live Nation/Ticketmaster agreed to pay $9.9 million to Washington, D.C. consumers for hidden ticket fees. Instacart was ordered to provide $60 million in consumer refunds for deceptive delivery pricing. And GrubHub settled for $25 million over misleading fee disclosures.

At the state level, seven states now have broad junk fee transparency laws: California, Minnesota, Virginia, Colorado (effective January 1, 2026), Oregon (effective January 1, 2026), Massachusetts (regulation effective September 2025), and Connecticut (effective July 1, 2026). The FTC is also advancing a new rulemaking targeting rental housing junk fees after its $24 million settlement with Greystar and its $47.2 million settlement with Invitation Homes.

If you have been charged hidden, misleading, or surprise fees — on tickets, hotel bookings, food delivery, apartment rentals, or nearly anything else — you may be entitled to a refund. Here is everything you need to know.

What Are Junk Fees?

"Junk fees" are charges that are:

• Hidden — not disclosed until late in the checkout process (a practice called "drip pricing")
• Misleading — labeled with vague terms like "convenience fee," "service fee," or "processing fee" without explaining what the fee actually covers
• Unavoidable — mandatory charges that a reasonable consumer would expect to be included in the advertised price

The FTC estimates that junk fees cost Americans billions of dollars per year and waste approximately 50 million hours of consumer time as people hunt for the real cost of purchases.

Common Types of Junk Fees

| Category | Examples | |---|---| | Event tickets | Service fees, processing fees, facility charges, order fees | | Hotels and lodging | Resort fees, destination fees, amenity fees, housekeeping charges | | Food delivery | Service fees on top of delivery fees, small-order fees, bag fees | | Apartment rentals | Smart home fees, package handling fees, valet trash fees, amenity fees, utility management fees | | Car purchases | Dealer prep fees, document fees, VIN etching, nitrogen tire fees | | Subscriptions | Hidden auto-enrollment, unclear cancellation terms, add-on charges |

The FTC Junk Fees Rule: What It Requires

The FTC's Rule on Unfair or Deceptive Fees took effect on May 12, 2025. It applies to live-event tickets and short-term lodging (hotels, motels, vacation rentals). Here is what the rule requires:

1. Total Price Must Be Shown Up Front

Businesses must display the total price — including all mandatory fees — whenever they show a price. The total price must be displayed more prominently than any other pricing information.

• A hotel advertising "$199/night" with a mandatory $35 resort fee must show $234/night
• A ticket seller listing a seat at $150 must include all mandatory service and processing fees in the displayed price

2. No Misleading Fee Descriptions

Businesses cannot use vague terms like "convenience fee" or "service fee" without clearly explaining what the fee is for, how much it costs, and whether it is refundable.

3. Full Disclosure Before Payment

Even fees that can be excluded from the upfront total (government taxes, shipping, truly optional add-ons) must be disclosed before the consumer is asked to provide payment information.

4. Maximum Price, Not Minimum

The advertised price must reflect the maximum a consumer will pay, not a theoretical minimum.

What the Rule Does NOT Cover (Yet)

The current FTC rule applies only to live-event tickets and short-term lodging. It does not directly cover:

• Airline tickets (regulated separately by the DOT)
• Car rentals
• Food delivery apps
• Apartment rentals
• General retail purchases

However, the FTC is actively expanding its enforcement. In April 2026, the FTC issued an Advance Notice of Proposed Rulemaking targeting unfair and deceptive fees in online food and grocery delivery services. The FTC is also considering a separate rulemaking for rental housing fees.

Penalties

Violations of the FTC rule can carry civil penalties of up to $53,088 per violation. The FTC has already demonstrated it will enforce aggressively — sending warning letters and filing complaints within days of the rule taking effect.

State Junk Fee Laws: The Growing Patchwork

Even where the federal rule does not reach, state laws are filling the gaps. Seven states now have broad junk fee transparency requirements:

Colorado's HB 25-1090: The Strongest State Law

Colorado's law is one of the most comprehensive in the nation:

• All industries — applies to every business transaction in the state
• Total price disclosure — every advertised price must include all mandatory fees, clearly and conspicuously displayed as a single number
• Rental housing protections — landlords cannot require tenants to pay certain fees; utility pass-throughs are capped at actual cost; non-utility fees cannot increase more than 2% during a short-term lease
• Restaurant service charges — mandatory service charges must disclose the amount/percentage and how proceeds are distributed
• Delivery platform fees — must disclose all additional fees at the point of vendor selection, before the customer confirms payment
• Enforcement — violations are deceptive trade practices under the Colorado Consumer Protection Act. Consumers can send a written demand for reimbursement; if unresolved within 14 days, the business may owe actual damages plus 18% interest

How State Laws Interact with the FTC Rule

State laws offering greater consumer protection are not preempted by the FTC rule. If a state has stricter transparency requirements — which most of these state laws do, since they apply more broadly than just tickets and lodging — businesses must comply with both the federal rule and the state law.

Major Junk Fee Settlements and Refund Programs

StubHub — $10 Million (April 2026)

What happened: For several days after the FTC rule took effect on May 12, 2025, StubHub continued to advertise ticket prices without disclosing the full total including mandatory fees. The FTC had already sent a warning letter on May 14. StubHub's first three screens of the purchase flow failed to show the total price.

Settlement terms: StubHub will pay $10 million through a consumer redress program. The company must contact eligible consumers and issue payments within 90 days.

Who is eligible: Consumers who purchased tickets on StubHub for live events in the U.S. between May 12 and May 14, 2025. Check your email for a notice from StubHub with refund instructions.

Live Nation/Ticketmaster — $9.9 Million (April 2026)

What happened: The District of Columbia Attorney General investigated Live Nation and found that the company misled consumers about ticket prices for at least a decade by charging hidden fees.

Settlement terms: Live Nation will pay $9.9 million, with approximately $8.9 million earmarked for refunds to D.C. consumers. Live Nation has already implemented "all-in" pricing for D.C. events.

Who is eligible: D.C. consumers who purchased tickets through Ticketmaster/Live Nation. A claims process will be announced.

Instacart — $60 Million (December 2025)

What happened: The FTC alleged that Instacart falsely advertised "free delivery" on consumers' first three orders, but then charged mandatory service fees (up to 15%) that were not disclosed until checkout. Instacart also allegedly enrolled consumers in Instacart+ subscriptions without their express informed consent.

Settlement terms: Instacart will pay $60 million in consumer refunds and must clearly disclose subscription terms and obtain explicit consent before enrolling users.

Who is eligible: Consumers who were charged for Instacart+ membership without informed consent. The FTC will release details about how to access refunds.

GrubHub — $25 Million (December 2024)

What happened: The FTC obtained a $25 million settlement with GrubHub over allegations it misled consumers about the cost of delivery, including hidden service fees and inflated menu prices.

Additional settlement: GrubHub also agreed to a separate $5 million class action settlement covering California customers who ordered delivery between January 24, 2019, and January 12, 2026. Eligible consumers could claim a $10 GrubHub site credit (claims deadline is May 12, 2026).

Invitation Homes — $47.2 Million (March 2026)

What happened: The FTC sued the single-family rental home company Invitation Homes for charging undisclosed mandatory fees — including "smart home technology," air filter delivery, and "utility management" fees — on top of advertised rents. The FTC also alleged the company failed to inspect homes before move-in and unfairly kept security deposits.

Settlement: The FTC sent $47.2 million in refund checks to affected renters in March 2026. Checks were mailed automatically to eligible consumers.

Greystar — $24 Million (December 2025)

What happened: The FTC settled with Greystar Real Estate Partners, the largest apartment management company in the U.S., over allegations it deceived renters about monthly costs by adding hidden fees on top of advertised rents.

Settlement terms: Greystar paid a $24 million penalty and must stop misrepresenting monthly rental prices.

Walmart Spark Drivers — $100 Million (February 2026)

What happened: The FTC and 11 states settled with Walmart for $100 million over allegations that the company deceived drivers in its Spark Driver program about base pay, incentive pay, and tips.

Rental Housing Junk Fees: A Growing Crisis

The FTC is now targeting rental housing junk fees specifically. On January 30, 2026, the FTC announced it would solicit public comment on the need for a federal rule to prevent deceptive rental housing fees.

Common Rental Junk Fees

A 2026 survey by the National Consumer Law Center (NCLC) found that tenants across the country face an array of unavoidable junk fees:

• Smart home technology fees — mandatory charges for internet-connected thermostats, locks, or lights (often $10–30/month)
• Package handling fees — charges for receiving and storing deliveries
• Valet trash fees — mandatory trash pickup from your door
• Utility management fees — charges on top of actual utility costs for "managing" billing
• Amenity fees — for features like a "mountain view," "loft," or "vinyl flooring" (one Denver renter reported $175/month in amenity fees)
• Dog DNA testing fees — mandatory fees for dog waste DNA testing programs
• Rental assistance fees — $200–500 charges for filling out rental assistance paperwork
• Postage fees — fees for sending a letter instead of an email

According to the Zillow Consumer Housing Trends Report, these fees are pervasive and disproportionately affect lower-income renters.

What You Can Do

1. Request a fee breakdown — Ask your landlord for a complete, itemized list of all charges beyond base rent
2. Check your state law — Colorado, California, and several other states now require full fee disclosure before you sign
3. File a complaint — Report undisclosed or deceptive rental fees to your state Attorney General and the FTC at ReportFraud.ftc.gov
4. Send a demand letter — In Colorado and some other states, you can formally demand reimbursement of unlawful fees
5. Contact a tenant rights organization — Local legal aid societies can help challenge unfair rental fees

How to Identify Junk Fees

Red Flags

• Fee appears only at checkout — If a charge was not shown on the initial product or service page, it may violate transparency rules
• Vague label — "Convenience fee," "service charge," "processing fee," or "administrative fee" without explanation
• Mandatory but not included — A fee you must pay that is not shown in the advertised price
• Percentage-based fees with no clear basis — A "service fee" calculated as a percentage of your order with no explanation of what service is being provided
• Resort/destination/amenity fees at hotels — Mandatory fees that should be part of the room rate
• Surprise subscription charges — Fees from auto-enrollment in a service you did not explicitly sign up for

Questions to Ask Before Paying

1. Is this fee mandatory? If yes, it should be in the advertised price.
2. What specific service does this fee provide?
3. Is this fee refundable if I cancel?
4. Does my state law require this fee to be disclosed upfront?
5. Has this company been cited by the FTC or my state AG for fee violations?

Step-by-Step: How to Get a Junk Fee Refund

Step 1: Document the Fee

• Take screenshots of the advertised price and the final checkout price
• Save receipts, confirmation emails, and billing statements
• Note the date, the company, the product/service, and the fee amount

Step 2: Contact the Company

• Request a refund of the undisclosed or misleading fee in writing
• Cite the specific rule or law that was violated (FTC rule for tickets/lodging; your state's junk fee law for other transactions)
• Give the company 14–30 days to respond

Step 3: File a Complaint

If the company does not resolve your complaint:

• FTC: File at ReportFraud.ftc.gov — the FTC uses complaint data to prioritize enforcement
• State Attorney General: Most state AGs have online complaint forms
• Better Business Bureau: File a complaint at bbb.org
• Consumer Financial Protection Bureau: For financial product fees at consumerfinance.gov

Step 4: Check for Class Action Settlements

Many junk fee cases result in class action settlements. Check:

• ** FTC refunds page** at ftc.gov/refunds to see if you qualify for an active refund program
• Top Class Actions (topclassactions.com) for open settlement claims
• Your email for settlement notices from companies like StubHub, Instacart, or GrubHub

Step 5: Dispute the Charge

If you paid by credit card, you can dispute the charge under the Fair Credit Billing Act:

• File a dispute with your card issuer within 60 days of the billing statement
• Explain that the merchant charged a fee that was not disclosed in the advertised price
• The card issuer must investigate and may issue a chargeback

Step 6: Consider Small Claims Court

For significant fees that remain unresolved:

• Small claims court handles disputes up to $5,000–$10,000 depending on your state
• Filing fees are typically $30–$100
• You do not need a lawyer
• Cite the FTC rule, your state's junk fee law, and your state's consumer protection statute

Companies Facing Active Junk Fee Enforcement

What's Coming Next

The junk fee landscape is evolving rapidly. Here is what to watch in 2026:

1. FTC food delivery rulemaking — The FTC is accepting public comments through May 18, 2026 on whether to create a rule targeting unfair fees in online food and grocery delivery
2. FTC rental housing rulemaking — The FTC is considering a rule to prevent deceptive fees in long-term rental housing
3. Connecticut junk fee law — Takes effect July 1, 2026, applying to all consumer goods and services
4. More state laws — Several additional states have pending junk fee legislation
5. More class action lawsuits — Plaintiff's firms are actively targeting companies that charge hidden fees across industries
6. Live Nation antitrust remedies — A federal court found Live Nation liable for monopolization in April 2026; behavioral remedies could include fee caps and transparency requirements

Key Takeaways

• The FTC Junk Fees Rule is now enforceable and carries penalties up to $53,088 per violation for hidden fees on event tickets and short-term lodging
• Seven states now have broad junk fee transparency laws that go beyond the federal rule, covering nearly all consumer transactions
• Over $250 million in consumer refunds have been secured through recent FTC settlements with StubHub, Live Nation, Instacart, GrubHub, Invitation Homes, and others
• The FTC is actively expanding its enforcement to food delivery and rental housing fees
• You have the right to dispute hidden fees, file complaints, and in many states, send a formal demand for reimbursement
• Check ftc.gov/refunds and your email regularly for settlement notices — many consumers miss refunds they are entitled to

Last updated May 3, 2026. This guide is for informational purposes only and does not constitute legal advice. Laws vary by state. For specific legal questions, consult an attorney.