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Steptoe & Johnson LLP | English | AcademicThink | Nov. 19, 2025 | Regulation

The Department of Transportation (DOT) plans to amend its "Full Fare" advertising rule, with a Notice of Proposed Rulemaking expected in December 2025. The current rule mandates that all advertised airfares include mandatory fees and taxes in the total price shown, and prohibits displaying any fare components, such as government fees, more prominently than the full fare. This requirement also extends to air-inclusive package tours, where the total package cost must include all fees and taxes.

This DOT rule contrasts with the Federal Trade Commission’s (FTC) December 2024 Trade Regulation Rule on Unfair or Deceptive Fees, which specifically addresses hotel price advertising. The FTC's rule similarly requires a total price disclosure prominently but allows businesses to exclude government charges from the advertised price. This inconsistency between the DOT and FTC rules creates compliance challenges for businesses advertising hotel stays bundled with airfares.

DOT’s upcoming rule change may allow airlines to advertise airfares without including government-imposed fees and taxes or may remove restrictions on how government fees are displayed relative to the total price. The DOT has indicated an intent to "eliminate overly prescriptive requirements" that limit airlines' ability to highlight government taxes, potentially allowing such fees to be shown more prominently. Given the current Administration's deregulatory stance, a relaxation of the inclusion requirement for government fees in advertised airfares and packages is probable.

Steptoe LLP's Aviation team will continue to monitor DOT rulemaking developments and provide updates. Businesses seeking guidance on DOT or FTC advertising regulations are encouraged to consult experts for assistance.