StubHub faces serious penalties of up to $53,088 per violation after the FTC caught them hiding fees from consumers during the high-traffic NFL schedule release period, while competitors Ticketmaster and SeatGeek played by the rules.
Key Takeaways
- The FTC has formally warned StubHub for failing to implement all-in pricing on its mobile app, which violates new transparency rules effective May 12, 2025.
- StubHub strategically delayed compliance during the NFL’s 2025 schedule release, a peak ticket-buying period, giving them an unfair competitive advantage.
- Competitors Ticketmaster and SeatGeek properly updated their systems by the deadline, highlighting StubHub’s deliberate non-compliance.
- Each instance of hidden fees could result in civil penalties of up to $53,088, potentially leading to massive fines if StubHub doesn’t immediately correct its practices.
- The crackdown is part of President Trump’s broader executive order targeting unfair practices in the live entertainment market, including ticket scalping and price gouging.
StubHub’s Selective Compliance Strategy Draws FTC Fire
StubHub has found itself in the federal government’s crosshairs after deliberately dragging its feet on implementing transparent pricing rules. While the ticket reseller updated its website to show all-in pricing by the May 12 deadline, it conspicuously failed to update its mobile app—where many consumers make purchases—just as the NFL’s 2025 schedule was being announced. This timing was no coincidence, as the scheduled release triggered one of the highest ticket-buying frenzies of the year, allowing StubHub to appear cheaper than competitors who were displaying honest, all-inclusive prices.
“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
The timing of StubHub’s non-compliance is particularly damning. While competitors Ticketmaster and SeatGeek properly implemented the required changes across all platforms, StubHub chose to keep mandatory fees hidden on its mobile app during the NFL schedule release. This selective implementation allowed StubHub to list artificially lower prices that didn’t include mandatory service and fulfillment fees, creating an illusion of better deals compared to compliant competitors. The FTC wasn’t fooled by this transparent attempt to game the system.
Heavy Consequences for Hiding Mandatory Fees
The FTC isn’t merely wagging its finger at StubHub—it’s threatening serious financial consequences. Each instance of non-compliance with the all-in pricing rule could result in civil penalties of up to $53,088. Given the high volume of tickets sold through StubHub’s platform, these penalties could quickly accumulate into millions. The rule requires that ticket sellers display the total price including all mandatory fees upfront, with only taxes, shipping costs, and optional charges excluded from the initial price display.
“As this letter shows, the Commission will not allow companies to circumvent the rule to gain a competitive advantage.”
The warning letter sent to StubHub makes it clear that the FTC is prepared to take enforcement action if compliance isn’t immediate and complete. This action would include not just the civil penalties but could potentially involve additional remedies aimed at protecting consumers. The FTC has also put other ticketing platforms on notice that they are being monitored for similar violations, signaling a zero-tolerance approach to deceptive pricing practices throughout the industry.
Part of President Trump’s Broader Crackdown on Ticket Market Abuses
The FTC’s aggressive stance against StubHub aligns with President Trump’s executive order targeting unfair practices in the live entertainment market. The order directly addresses the kinds of pricing opacity that StubHub has been caught engaging in, along with broader issues like ticket scalping and the use of automated bots to hoard tickets. The President’s order specifically directs enforcement agencies to protect consumers from price gouging tactics that have become rampant in the ticket resale market.
“Ticket scalpers use bots and other unfair means to acquire large quantities of face-value tickets and then resell them at an enormous markup on the secondary market, price-gouging consumers and depriving fans of the opportunity to see their favorite artists without incurring extraordinary expenses.” Said Donald Trump
The Department of Justice and FTC have jointly launched a public inquiry into anticompetitive practices across the entertainment and live concert industries. This investigation aims to ensure markets remain competitive, benefiting both performing artists and fans by making tickets more affordable while ensuring artists receive fair compensation. The warning to StubHub represents just one front in a much larger battle against deceptive pricing and anti-competitive behavior that has been gouging American consumers for far too long.
“Competitive live entertainment markets should deliver value to artists and fans alike.” Said Abigail Slater.
