Petition for Rulemaking for the Federal Trade Commission to Ban Drip Pricing

The Institute for Policy Integrity is petitioning the Federal Trade Commission to ban 'drip pricing', a practice where sellers advertise low prices and reveal mandatory fees late in the transaction process. The petition argues that this practice, common in event tickets and vacation rentals, exploits cognitive biases and hinders comparison shopping. The proposal suggests requiring full price disclosure upfront and asserts that the Commission has the authority to ban the practice as a deceptive trade practice, unfair trade practice, or unfair method of competition.

• Drip pricing is described as a strategy where sellers advertise deceptively low prices and only reveal mandatory fees when a consumer is nearly finished with a transaction, which increases search time and complicates comparison shopping.
• The practice of drip pricing is noted as being pervasive in the sectors of hotel and vacation rentals, as well as concert and event ticket sales.
• The petition proposes a rule requiring all sellers to disclose the total price of a product or service upfront, including all mandatory surcharges, and identifies three legal bases for the Commission to act: deceptive trade practices, unfair trade practices, and unfair methods of competition.

APA

Sarinsky, J. L. M. (2021). Petition for Rulemaking for the Federal Trade Commission to Ban Drip Pricing. Institute for Policy Integrity. https://policyintegrity.org/projects/update/petition-for-rulemaking-for-the-federal-trade-commission-to-ban-drip-pricing

Chicago

Sarinsky, Jack Lienke, Max. Petition for Rulemaking for the Federal Trade Commission to Ban Drip Pricing. Institute for Policy Integrity, 2021. https://policyintegrity.org/projects/update/petition-for-rulemaking-for-the-federal-trade-commission-to-ban-drip-pricing.

Wikipedia

{{cite press release |last1=Sarinsky |first1=Jack Lienke, Max |title=Petition for Rulemaking for the Federal Trade Commission to Ban Drip Pricing |publisher=Institute for Policy Integrity |date=7 July 2021 |url=https://policyintegrity.org/projects/update/petition-for-rulemaking-for-the-federal-trade-commission-to-ban-drip-pricing |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{sarinsky2021petition, author = {Sarinsky, Jack Lienke, Max}, title = {{Petition for Rulemaking for the Federal Trade Commission to Ban Drip Pricing}}, publisher = {Institute for Policy Integrity}, year = {2021}, month = jul, url = {https://policyintegrity.org/projects/update/petition-for-rulemaking-for-the-federal-trade-commission-to-ban-drip-pricing}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }