FTC Cracks Down on StubHub: Hidden Fees Could Cost Millions!

Federal Trade Commission (FTC)

WASHINGTON, D.C. — The Federal Trade Commission (FTC) has issued a warning letter to StubHub Holdings, Inc., alleging that the ticket resale giant failed to comply with the recently implemented Rule on Unfair or Deceptive Fees, also known as the “Fees Rule.” The rule mandates clear and prominent disclosure of the total price of live-event tickets, including all mandatory fees, to prevent deceptive pricing practices.

“Companies have had sufficient time to prepare for these changes and update their advertising to ensure the total price of each product or service is appropriately disclosed,” said Chris Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “As this letter shows, the Commission will not allow companies to circumvent the rule to gain a competitive advantage.”

Implemented on May 12, 2025, the Fees Rule requires companies to disclose the complete cost of tickets, excluding taxes and charges for optional add-ons. StubHub, however, allegedly failed to include certain mandatory fees, such as fulfillment and service charges, in ticket prices displayed on its platform. According to the FTC, each instance of noncompliance may constitute a separate violation, subject to civil penalties of up to $53,088 per infraction.

The letter highlights the expected increase in platform activity due to the NFL’s 2025 season schedule release and emphasizes that StubHub’s failure to comply could lead to significant financial penalties. The Commission urged the company to take immediate corrective action and warned that violations could result in additional enforcement measures under the FTC Act.

The rule, announced last December, aims to promote transparency in ticket pricing and empower consumers to make informed decisions. “Each failure to comply with the Fees Rule is a separate violation,” the FTC staff underscored in their communication to StubHub.

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This move by the FTC highlights its efforts to ensure fair practices in the ticketing industry and serves as a strong reminder to companies to prioritize honest disclosures. By enforcing transparency, the agency seeks to foster greater consumer trust in online marketplaces and event ticketing platforms.

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