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As the National Football League prepares to announce the 2025 season schedule, staff of the Federal Trade Commission sent a warning letter today to StubHub Holdings, Inc. (StubHub), the nation’s largest ticket exchange and resale business, stating that it appears to have misrepresented the total price of some of the tickets displayed for sale on its website, in violation of the agency’s new Rule on Unfair or Deceptive Fees (Fees Rule).
“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.”
Under the Rule, which was announced in December of last year, published in January, and took effect on May 12, it is an unfair and deceptive practice for any business to offer, display, or advertise the price of a live-event ticket without clearly, conspicuously, and prominently disclosing the total price, which the FTC defines as “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.
As detailed in the letter, staff has identified instances in which StubHub’s displayed ticket prices failed to include all mandatory fees and charges. While the Fees Rule allows some initial exclusions from the total price, as noted above, staff contends that StubHub left out mandatory fees and charges such as required fulfillment fees and service fees.
“Given the high volume of traffic and sales expected across ticketing platforms tonight with the release of the NFL schedule for the 2025 season, we remind you that each failure to comply with the Fees Rule is a separate violation that may be subject to civil penalties,” staff states in the letter, which encouraged the company to immediately comply with the Fees Rule. Such violations also can lead to civil penalties of up to $53,088 per violation, as well as other monetary relief, under the FTC Act.
The Fees Rule and its effective date were published in January, giving businesses several months to bring their practices into compliance before it went into effect. The FTC recently issued guidance to help consumers and businesses comply with the Fees Rule.
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