On March 12, 2026, the Federal Trade Commission (“FTC”) announced an Advanced Notice of Proposed Rulemaking (“ANPRM”) seeking public comment on a proposed rulemaking focusing on potential unfair or deceptive acts or practices in the rental housing market. This ANPRM contemplates requiring landlords and property managers to provide full, upfront disclosure of all mandatory charges before a consumer applies for or commits to a lease. The FTC is evaluating whether certain rental‑related fees (e.g., application fees, administrative fees, convenience charges, amenity fees, and other add‑on fees) constitute unfair or deceptive practices when they are not clearly disclosed upfront or bear no reasonable relationship to the underlying cost of the service.

Comments are due on April 13, 2026. The FTC may then decide whether to proceed to a notice of proposed rulemaking or take no further action. The ANPRM seeks detailed input on how rental fees are structured, disclosed, and experienced by consumers throughout the leasing lifecycle. In particular, the FTC is seeking market studies, economic data, and other empirical evidence. The agency is specifically requesting comments on:

• Total Rent: Whether rental housing providers clearly and conspicuously disclose the true total rent, including all mandatory fees and charges.
• Fees and Charges: Whether rental housing providers clearly and conspicuously disclose the nature, purpose, amount, refundability, optionality, and recurrence of fees and charges.
• Application Fees: Whether rental housing providers engage in application‑fee practices, such as excessive fees, nondisclosure, or charging multiple applicants for the same unit, that might harm or fail to provide a benefit to consumers.
• Security Deposits: Whether rental housing providers engage in certain security‑deposit practices, such as failing to provide clear terms, taking improper deductions, or delaying refunds.
• Billing Issues: Whether rental housing providers engage in certain billing practices, such as inaccurate statements, assessing charges that are not adequately disclosed, or marketing add‑on products or services.
• Consumer Choice: Whether rental housing providers engage in practices that could impede consumer choice, such as opaque pricing, restrictive policies, or misleading representations.
• Third-Party Service Providers: The role third-party service providers play in the advertising of the true total rent and whether such service providers place any “impediments” on the ability of rental housing property owners or managers to advertise the true total rent in their own advertising and third-party advertising.

While the ANPRM is asking the public to comment on whether a rule is needed, the agency’s proposed topics of interest highlight potential implications for industry stakeholders:

• Landlords and Property Managers: A rulemaking could increase compliance obligations around fee disclosure, documentation, and pricing justification, and potentially require revisions to existing fee schedules.
• Rental Platforms and Property‑Tech Providers: Companies may need to adjust user interfaces and listing practices to ensure standardized presentation of total rental costs.
• Consumer‑Facing Communications: Marketing materials, online listings, and leasing workflows may need updates to ensure compliance with any new “all‑in pricing” requirements.

This initiative is part of the FTC’s broader campaign against “junk fees” across consumer‑facing industries and follows recent enforcement actions involving hidden or undisclosed rental charges.  If promulgated, the rule will create a federal baseline for rental fee transparency, supplementing existing state and local requirements and requiring rental housing providers with multi‑state portfolios to reexamine their compliance practices. Covington will continue to monitor developments related to this rulemaking and related enforcement activity.  If you have any questions concerning the material discussed in this blog post, please contact the members of our Advertising and Consumer Protection Investigations practice.