diff --git a/src/pages-and-resources/live/BBBSettings.jsx b/src/pages-and-resources/live/BBBSettings.jsx
index 7a29c22d5..9e97f875a 100644
--- a/src/pages-and-resources/live/BBBSettings.jsx
+++ b/src/pages-and-resources/live/BBBSettings.jsx
@@ -1,4 +1,4 @@
-import React, { useState } from 'react';
+import React, { useEffect, useState } from 'react';
 import { FormattedMessage, injectIntl, intlShape } from '@edx/frontend-platform/i18n';
 import { Form, Hyperlink } from '@edx/paragon';
 import PropTypes from 'prop-types';
@@ -14,10 +14,17 @@ function BbbSettings({
   setFieldValue,
 }) {
   const [bbbPlan, setBbbPlan] = useState(values.tierType);
+
+  useEffect(() => {
+    setBbbPlan(values.tierType);
+  }, [values.tierType]);
+
   const appInfo = useModel('courseApps', 'live');
+  const app = useModel('liveApps', 'big_blue_button');
   const isPiiDisabled = !values.piiSharingEnable;
   function getBbbPlanOptions() {
-    const options = ['Select', bbbPlanTypes.free, bbbPlanTypes.commercial];
+    const options = ['Select', bbbPlanTypes.commercial];
+    if (app.hasFreeTier) { options.push(bbbPlanTypes.free); }
     return options.map(option => (
       <option
         key={option}
diff --git a/src/pages-and-resources/live/BbbSettings.test.jsx b/src/pages-and-resources/live/BbbSettings.test.jsx
index bb611306e..9b66ef77e 100644
--- a/src/pages-and-resources/live/BbbSettings.test.jsx
+++ b/src/pages-and-resources/live/BbbSettings.test.jsx
@@ -94,13 +94,13 @@ describe('BBB Settings', () => {
     expect(container.querySelector('select[name="tierType"]')).not.toBeDisabled();
   });
 
-  it('Plan dropdown should display correct number of options', async () => {
-    await mockStore({ emailSharing: true });
+  test.each([[true, 3], [false, 2]])('Plan dropdown should display correct number of options', async (isFreeTier, noOfOptions) => {
+    await mockStore({ emailSharing: true, isFreeTier });
     renderComponent();
     const spinner = getByRole(container, 'status');
     await waitForElementToBeRemoved(spinner);
     const dropDown = queryByTestId(container, 'plansDropDown');
-    expect(getAllByRole(dropDown, 'option').length).toBe(3);
+    expect(getAllByRole(dropDown, 'option').length).toBe(noOfOptions);
   });
 
   test('Connect to support and PII sharing message is visible and plans selection is disabled, When pii sharing is disabled, ',
diff --git a/src/pages-and-resources/live/Settings.jsx b/src/pages-and-resources/live/Settings.jsx
index 0cfeb7fe9..52593d2fe 100644
--- a/src/pages-and-resources/live/Settings.jsx
+++ b/src/pages-and-resources/live/Settings.jsx
@@ -24,7 +24,7 @@ function LiveSettings({
   const courseId = useSelector(state => state.courseDetail.courseId);
   const availableProviders = useSelector((state) => state.live.appIds);
   const {
-    piiSharingAllowed, selectedAppId, enabled, status, tierType,
+    piiSharingAllowed, selectedAppId, enabled, status,
   } = useSelector(state => state.live);
 
   const appConfig = useModel('liveAppConfigs', selectedAppId);
@@ -40,7 +40,7 @@ function LiveSettings({
     piiSharingEnable: piiSharingAllowed || false,
     piiSharingUsername: app?.piiSharing?.username || false,
     piiSharingEmail: app?.piiSharing?.email || false,
-    tierType: tierType || '',
+    tierType: appConfig?.tierType || '',
   };
 
   const validationSchema = {
diff --git a/src/pages-and-resources/live/data/api.js b/src/pages-and-resources/live/data/api.js
index a8a69cd0f..e70038db7 100644
--- a/src/pages-and-resources/live/data/api.js
+++ b/src/pages-and-resources/live/data/api.js
@@ -18,6 +18,7 @@ function normalizeProviders(data) {
     featureIds: app.features,
     name: app.name,
     piiSharing: app.pii_sharing,
+    hasFreeTier: app.has_free_tier,
   }));
 
   return {
@@ -36,7 +37,8 @@ function normalizeLtiConfig(data) {
     consumerKey: data.lti_1p1_client_key,
     consumerSecret: data.lti_1p1_client_secret,
     launchUrl: data.lti_1p1_launch_url,
-    launchEmail: data.lti_config.additional_parameters?.custom_instructor_email,
+    launchEmail: data.lti_config?.additional_parameters?.custom_instructor_email,
+    tierType: data.tierType,
   };
 }
 
@@ -48,10 +50,9 @@ export function normalizeSettings(data) {
   return {
     enabled: data.enabled,
     piiSharingAllowed: data.pii_sharing_allowed,
-    tierType: tier,
     appConfig: {
       id: data.provider_type,
-      ...normalizeLtiConfig(data.lti_configuration),
+      ...normalizeLtiConfig({ ...data.lti_configuration, tierType: tier }),
     },
   };
 }
@@ -67,12 +68,13 @@ export function deNormalizeSettings(data) {
   if (data.launchUrl) {
     ltiConfiguration.lti_1p1_launch_url = data.launchUrl;
   }
-  if (data.launchEmail) {
-    ltiConfiguration.lti_config = {
-     additional_parameters: {
+  if (data?.provider === 'zoom' || data.tierType !== 'Free') {
+    ltiConfiguration.lti_config = {};
+    if (data.launchEmail) {
+      ltiConfiguration.lti_config.additional_parameters = {
         custom_instructor_email: data.launchEmail,
-      },
-    };
+      };
+    }
   }
   if (Object.keys(ltiConfiguration).length > 0) {
     // Only add this in if we're sending LTI fields.
@@ -82,10 +84,10 @@ export function deNormalizeSettings(data) {
 
   const apiData = {
     enabled: data?.enabled || false,
-    lti_configuration: ltiConfiguration,
+    lti_configuration: Object.keys(ltiConfiguration).length ? ltiConfiguration : undefined,
     provider_type: data?.provider || 'zoom',
     pii_sharing_allowed: data?.piiSharingEnable || false,
-    free_tier: Boolean(data.tierType === 'Free'),
+    free_tier: data?.provider === 'zoom' ? false : Boolean(data.tierType === 'Free'),
   };
   return apiData;
 }
@@ -110,7 +112,6 @@ export async function getLiveProviders(courseId) {
 export async function getLiveConfiguration(courseId) {
   const { data } = await getAuthenticatedHttpClient()
     .get(`${providerConfigurationApiUrl}/${courseId}/`);
-
   return normalizeSettings(data);
 }
 
@@ -119,6 +120,5 @@ export async function postLiveConfiguration(courseId, config) {
     `${providerConfigurationApiUrl}/${courseId}/`,
     deNormalizeSettings(config),
   );
-
   return normalizeSettings(data);
 }
diff --git a/src/pages-and-resources/live/factories/mockApiResponses.jsx b/src/pages-and-resources/live/factories/mockApiResponses.jsx
index 346d275b2..1af777992 100644
--- a/src/pages-and-resources/live/factories/mockApiResponses.jsx
+++ b/src/pages-and-resources/live/factories/mockApiResponses.jsx
@@ -37,7 +37,7 @@ export const configurationProviders = (
   emailSharing,
   usernameSharing,
   activeProvider = 'zoom',
-  isFreeTier,
+  hasFreeTier,
 ) => ({
   providers: {
     active: activeProvider,
@@ -54,7 +54,7 @@ export const configurationProviders = (
       big_blue_button: {
         additional_parameters: [],
         features: [],
-        has_free_tier: isFreeTier,
+        has_free_tier: hasFreeTier,
         name: 'Big Blue Button',
       },
     },