As the National Football League prepares to unveil its 2025 season schedule, the Federal Trade Commission (FTC) has issued a warning to StubHub Holdings, Inc. The agency claims that StubHub, a major ticket exchange and resale platform, may have misrepresented the total price of some tickets on its website. This action is said to violate the FTC's new Rule on Unfair or Deceptive Fees.
Chris Mufarrige, Director of the FTC’s Bureau of Consumer Protection, stated: “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.” He emphasized that the Commission will not allow companies to bypass this rule for competitive gain.
The Rule, announced in December last year and effective from May 12, mandates businesses to clearly disclose the total price of live-event tickets. This includes all mandatory fees or charges except taxes, shipping, and optional items chosen by consumers.
The FTC's letter highlights instances where StubHub allegedly did not include required fulfillment fees and service fees in their displayed prices. The letter warns that each non-compliance with the Fees Rule could result in civil penalties up to $53,088 per violation.
With significant traffic expected on ticketing platforms due to the NFL schedule release, StubHub was urged to adhere immediately to the Fees Rule. Violations could lead not only to fines but also other monetary relief under the FTC Act.
Businesses were given several months from January when the Fees Rule was published until it took effect in May to comply with its requirements. The FTC has also provided guidance for consumers and businesses regarding compliance with this rule.
The Federal Trade Commission aims to promote competition while protecting and educating consumers. It does not demand money or make threats related to prize promises. Consumers can learn more about various topics at consumer.ftc.gov or report fraudulent activities at ReportFraud.ftc.gov.
