Price Transparency Under the FTC Act: What Healthcare Providers Should Know

Federal Trade Commission (FTC) Chairman Andrew Ferguson on October 5, 2026, sent warning letters to 24 of the nation's largest healthcare services companies explaining that providers are required to furnish patients timely, accurate and complete pricing information under Section 5 of the FTC Act (15 U.S.C. § 45) in addition to Centers for Medicare & Medicaid Services (CMS) price transparency rules.

The FTC did not identify the recipients or conclude that the companies receiving the letters had violated the FTC Act. Instead, the letters put the recipients – and the broader healthcare industry – on notice of the agency's enforcement position.

The FTC considers CMS price transparency rules "a regulatory floor," not "a safe harbor," and has opened hospital price transparency investigations. For providers, clear, all-in pricing presents an opportunity to build patient trust and prepare for potential scrutiny.

The Bottom Line

The FTC's letters underscore the need for providers to evaluate their practices under both Section 5 of the FTC Act and applicable CMS requirements.

• Relevant Across the Industry: The FTC encourages all U.S. healthcare service providers, not only the 24 recipients, to review their pricing disclosures.
• Complete and Accurate Estimates Are the Focus: Estimates that include physician and facility fees and the full episode of care, delivered before scheduled services, align with the FTC's expectations.
• A Proactive Review Is the Strongest Position: A privileged assessment under Section 5, not just CMS rules, lets organizations identify and address potential gaps proactively on their own timeline.
• Warning Letters Signal Enforcement Risk, Not Findings of Liability: The FTC expressly states that receipt of a letter does not reflect a particularized assessment or conclusion that a recipient violated the FTC Act. At the same time, Chairman Ferguson characterized the letters as warnings and stated that the agency has already opened hospital price transparency investigations.

Background

As noted above, the FTC did not publicly identify the 24 recipients, though the letter indicates that similar letters are being sent to other healthcare service providers. The letters follow the March 20, 2026, launch of the FTC Healthcare Task Force and coincided with a new CMS final rule intended to make price transparency data easier to use.

What the Letter Says

• Legal Basis: The FTC takes the position that Section 5 of the FTC Act may prohibit healthcare providers from failing to provide timely, accurate and complete pricing information, particularly for routine and nonemergency services scheduled in advance.
• Deception: "Price" is a material term, and clear and conspicuous disclosures are often necessary. Under the FTC's 1984 Policy Statement on Deception, failing to disclose price may constitute a material omission likely to mislead consumers acting reasonably.
• Partial and Inaccurate Disclosures: Even partial disclosures may be deceptive if they omit physician or facility fees or cover only a portion of expected care because consumers may reasonably believe the disclosed amount reflects the total cost. Inaccurate disclosures also mislead consumers.
• Unfairness: Incomplete, inaccurate or untimely disclosures – where pricing information is reasonably available in advance – may be unfair under 15 U.S.C. § 45(n) if they cause substantial injury that consumers cannot reasonably avoid and is not outweighed by countervailing benefits. The FTC states such practices prevent comparison shopping and undermine competition.
• Regulatory Overlay: CMS requirements represent "a regulatory floor." The letter cites the CMS Hospital Price Transparency rule (45 C.F.R. pt. 180), which took effect January 1, 2021, and requires a machine-readable file of all standard charges and a consumer-friendly display of at least 300 shoppable services. It also references expanded requirements effective January 1, 2026, including allowed-amount median and 10th- and 90th-percentile data, an attestation of completeness and accuracy, and identification of an official responsible for data accuracy. In addition, the letter points to the No Surprises Act's good-faith estimates and Executive Orders 13877 (2019) and 14221 (2025), which call for actual prices rather than estimates.
• Enforcement Posture. The FTC highlights rural Americans, seniors and veterans and cites its price transparency work in other markets, including rental housing, ticketing and hotels, grocery delivery, auto sales and contact lenses.

Key Takeaways for General Counsel

• CMS Compliance Is Not a Defense: Compliance with the CMS Hospital Price Transparency rule and No Surprises Act requirements may not satisfy Section 5 as the FTC is layering consumer protection enforcement on top of the existing regulatory regime.
• All-In Pricing Information Is the Focus: Disclosures should reflect the full anticipated cost for each episode of care, including physician and facility fees. Complete estimates are the clearest way to meet the standard.
• Timing and Accuracy Matter: Price information reasonably available in advance should be provided before scheduled, nonemergency care, and estimates should track final bills.
• Consumer-Facing Channels Are in Scope: Estimator tools, websites, scheduling scripts, patient portals and marketing materials are all potential sources of a material misrepresentation or omission. Providers should evaluate the consumer's overall understanding of the expected price, not simply whether each individual disclosure is technically accurate.
• Industry-Wide Guidance: The FTC encourages all U.S. healthcare service providers to review their practices, not only the 24 recipients.
• Preparation Pays Off: With investigations already underway, organizations can better position themselves to answer potential questions by conducting structured reviews under attorney-client privilege and work-product protection and reporting findings to their boards or compliance committees.
• Scope of Transparency Requirements Are Expanding: The FTC letters arrived on the same day that the U.S. Department of Health and Human Services, U.S. Department of Labor and U.S. Department of the Treasury finalized updates to the Transparency in Coverage rules for health plans and insurers. Among other changes, the updated rules strengthen accountability for data accuracy and signal a future focus on prescription drug information.

Recommended Next Steps

• Conduct a privileged gap assessment of price disclosure practices against Section 5 standards, not just CMS requirements.
• Test published and patient-specific estimates against final bills and document variance drivers.
• Review physician fee and facility fee disclosures, including hospital-based and provider-based billing arrangements.
• Review scheduling scripts, web estimator tools, patient portal content and marketing claims for completeness and accuracy.
• Confirm the accuracy of CMS machine-readable files, 2026 allowed-amount data elements, attestation and named responsible official.
• Document corrective actions taken and prepare a Civil Investigative Demand (CID) and investigation response protocol.
• If your organization received a letter, contact counsel promptly to evaluate response strategy.

How Holland & Knight Can Help

Holland & Knight helps healthcare organizations assess price transparency practices, address potential compliance gaps and prepare for regulatory scrutiny. Our team provides practical guidance across the full range of FTC, CMS and related enforcement considerations, including:

• privileged price transparency and FTC Act Section 5 risk assessments
• CMS Hospital Price Transparency and No Surprises Act compliance counseling
• FTC investigation and CID response, as well as enforcement defense
• review of consumer-facing disclosures, estimator tools and advertising
• board and compliance committee briefings
• coordination with related antitrust and state attorneys general matters, as well as litigation

To discuss an approach tailored to your organization or for more information on these developments, please contact the authors.

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your Holland & Knight representative or other competent legal counsel.