StubHub Settles FTC Claims Over Failure to Disclose Total Ticket Costs

StubHub has agreed to pay $10 million to settle Federal Trade Commission allegations that it violated the newly enacted "Fees Rule" by failing to disclose total ticket costs upfront. The settlement, filed in the U.S. District Court for the Southern District of New York, resolves claims that the company deceptively advertised prices without including mandatory fees during a high-traffic window in May 2025.

The FTC complaint specifically targeted StubHub’s actions between May 12 and May 15, 2025—a period that coincided with the release of the National Football League season schedule. Regulators alleged that the company made a strategic decision to "slow-walk" compliance with all-in pricing requirements to maintain a perceived price advantage during what StubHub internally described as a "99th percentile traffic event." While the company publicly supported the transparency rule, the agency found that it continued to hide fees until the final checkout stage on numerous listings.

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Under the terms of the stipulated order, the $10 million payment will be used to provide direct refunds to consumers who purchased tickets during the three-day non-compliance period. Beyond the financial penalty, the order imposes a 10-year compliance monitoring program and strictly prohibits StubHub from misrepresenting the nature, purpose, or total amount of any mandatory charges. The enforcement action underscores a broader U.S. regulatory shift toward eliminating "junk fees" in the live-event and short-term lodging sectors.

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