Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: FTC urges StubHub to comply with Fees Rule, (May 15, 2025)
Organizations Mentioned:Bureau of Consumer Protection | StubHub Holdings, Inc.
By Jody Coultas, J.D.
The ticket reseller was warned to accurately represent the total price of its tickets.
The FTC has sent a warning letter to ticket exchange business StubHub Holdings, Inc. concerning possible misrepresentations of the total price of tickets on its website in violation of the Rule of Unfair or Deceptive Fees, the agency announced. “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.”
StubHub is the largest ticket exchange and resale business in the country. With the release of the National Football League 2025 season schedule, StubHub is set to see an increase in website traffic and sales. The FTC identified possible Fees Rule violations on StubHub’s website and sent the company a warning letter urging compliance so that NFL fans and other consumers are not deceived about the total price of tickets.
FTC staff found that StubHub had left out mandatory fees and charges when displaying tickets on its website. Although the Fees Rule allows initial exclusions from total price for government charges, shipping charges, and fees or charges for optional ancillary goods or services, the mandatory fees and charges StubHub has omitted from its price displays, such as fulfillment fees and service fees, do not appear to be covered by any permissible exemption.
The FTC asked StubHub to suspend any routine procedures for document destruction and take all necessary measures to prevent the destruction of documents and information that may be relevant to the subject matter of this letter, regardless of whether it believes such documents are protected from discovery by privilege or otherwise. This suspension should apply to any documents that may relate to: (1) the offer, display, or advertising of any price for a live-event ticket and any ancillary goods or services beginning on Monday, May 12, 2025 by StubHub Holdings, Inc., including all directors, officers, employees, independent contractors, agents, consultants, and other persons working for or on behalf of the foregoing; and (2) regardless of time, StubHub’s efforts to come into compliance with the Fees Rule.
Fees Rule. The Fees Rule makes it an unfair and deceptive practice for any business to advertise the price of a live-event ticket without clearly disclosing the total price. The total price is “the maximum total of all fees or charges a consumer must pay for any good(s) or service(s) and any mandatory ancillary good or service,” excluding only taxes, shipping, and charges for optional items the consumer adds to their purchase. Further, where the initial contact with a consumer shows a lower or partial price without including mandatory fees, later disclosure of such fees does not cure the initial misrepresentation. Failure to comply with the Fees Rule also harms other businesses, which cannot effectively compete with businesses that obscure the true cost in violation of the Rule.
Violations of the FTC Act and the Fees Rule may be subject to an FTC enforcement action, civil penalties of up to $53,088 per violation, as well as monetary relief. Each failure to comply with the Fees Rule is a separate violation that may be subject to civil penalties.
The Fees Rule was published on January 10 and went into effect on May 12.
Companies: StubHub Holdings, Inc.
MainStory: TopStory Advertising ConsumerProtection FederalTradeCommissionNews