StubHub faces potential fines up to $53,088 per violation after deliberately delaying price transparency during NFL schedule release to gain an unfair market advantage over competitors.
Key Takeaways
- The FTC has formally warned StubHub for failing to comply with new “all-in pricing” regulations that took effect May 12, requiring upfront display of total ticket costs.
- StubHub strategically delayed updating its mobile app with transparent pricing during the high-traffic NFL 2025 schedule release, while competitors Ticketmaster and SeatGeek had already complied.
- Each violation of the transparency rule could result in civil penalties of up to $53,088, with the FTC considering each non-compliant transaction as a separate violation.
- President Trump’s executive order specifically targets unfair ticketing practices, aiming to eliminate hidden fees and combat scalpers who use bots to acquire and resell tickets at enormous markups.
- The Department of Justice and FTC have launched a broader inquiry into anticompetitive practices across the entertainment and live concert industries.
StubHub’s Pricing Deception Exposed
The Federal Trade Commission has issued a stern warning to StubHub for deliberately obscuring ticket prices by failing to implement required transparency measures. The ticketing platform stands accused of misrepresenting costs by not displaying mandatory fees upfront, particularly during the high-traffic period following the NFL’s 2025 schedule announcement. This tactical delay gave StubHub an unfair competitive advantage over rival platforms that had already complied with the new regulations requiring clear, all-inclusive pricing.
“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 FTC’s new rule, which took effect on May 12, requires all ticket sellers to display the total cost of tickets upfront, including service fees, fulfillment fees, and other mandatory charges. While StubHub updated its website to comply, it conspicuously delayed updating its mobile app—a critical platform since many consumers purchase tickets through mobile devices. This selective compliance occurred strategically as football fans rushed to secure tickets for the upcoming NFL season.
Competitors Play by the Rules While StubHub Exploits Loophole
Both primary and secondary ticket sellers fall under the FTC’s new transparency regulation. Major competitors Ticketmaster and SeatGeek promptly updated their systems to display all-in pricing by the deadline, while StubHub lagged behind in mobile implementation. The timing of this delay—coinciding precisely with the NFL schedule release—suggests a calculated strategy to appear cheaper than rivals at first glance, only revealing the true cost later in the purchasing process.
“As this letter shows, the Commission will not allow companies to circumvent the rule to gain a competitive advantage.”
The FTC has made it clear that each instance of non-compliance constitutes a separate violation, potentially resulting in civil penalties up to $53,088 per violation. This approach means StubHub could face substantial financial consequences for transactions completed without transparent pricing. The regulatory body has also put other ticketing platforms on notice that it will be monitoring the industry closely for compliance with these new transparency rules.
President Trump’s Crackdown on Ticketing Industry Abuses
The FTC’s enforcement actions align with President Trump’s broader initiative to reform the live entertainment market. His executive order specifically targets unfair ticketing practices, with a focus on combating scalpers who use bots to acquire large quantities of tickets for resale at inflated prices. The Better Online Ticket Sales (BOTS) Act, a key component of this effort, prohibits the use of automated systems to bypass purchasing limits or create fake identities to acquire tickets.
“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.” Stated President Donald Trump
The Department of Justice and FTC have launched a comprehensive public inquiry into anticompetitive practices throughout the entertainment and live concert industries. This investigation aims to create more competitive markets that benefit both artists and fans by making tickets more affordable while ensuring fair compensation for performers. The StubHub warning represents just one component of this larger effort to bring transparency and fairness to an industry long plagued by hidden fees and deceptive pricing practices.
“Competitive live entertainment markets should deliver value to artists and fans alike,” Said Abigail Slater
