StubHub faces potential fines of over $50,000 per violation after deliberately delaying transparent ticket pricing during NFL’s 2025 schedule release, giving them an unfair edge over compliant competitors like Ticketmaster and SeatGeek.
Key Takeaways
- The FTC has issued a formal warning to StubHub for failing to implement all-in pricing on their mobile app despite the rule taking effect May 12, 2025.
- StubHub’s non-compliance coincided with the high-traffic NFL 2025 schedule release, potentially giving them an unfair competitive advantage.
- Violations could result in civil penalties of up to $53,088 per individual violation.
- The crackdown is part of President Trump’s broader executive order to combat unfair practices in the live entertainment market.
- Other major ticketing platforms like Ticketmaster and SeatGeek complied with the new transparency rules by the deadline.
StubHub’s Strategic Delay During NFL Schedule Release
The Federal Trade Commission has put StubHub on notice for strategically delaying implementation of mandatory all-in pricing just as the NFL’s 2025 schedule was announced. While StubHub updated its website to comply with the new FTC rule requiring upfront display of total ticket prices, it conspicuously failed to update its mobile app—the platform many consumers use for purchases. This selective compliance occurred during one of the ticket industry’s busiest periods, when football fans rushed to secure seats for the upcoming season.
The timing of StubHub’s delay is particularly suspicious as competitors Ticketmaster and SeatGeek both fully implemented the required changes by the May 12 deadline. The FTC has explicitly stated that StubHub’s actions appear calculated to gain an unfair market advantage by advertising apparently lower prices than competitors who honestly included all mandatory fees in their initial price displays.
Trump Administration Cracks Down on Ticket Industry Practices
The FTC’s warning to StubHub represents a significant step in President Trump’s broader initiative to reform the live entertainment ticket market. The President’s executive order specifically targets ticket scalpers and unfair pricing practices that have plagued consumers for years. The order instructs both the Attorney General and the FTC to enforce competition laws, including the Better Online Ticket Sales (BOTS) Act, which prohibits using automated systems to bypass purchasing limits.
“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.” Said Donald Trump
The Department of Justice and FTC have also launched a public inquiry into anticompetitive practices throughout the entertainment and live concert industries. This investigation aims to ensure that concert tickets are more affordable for fans while ensuring artists receive fair compensation for their work—a balance that has become increasingly difficult to achieve in recent years.
FTC Warns of Severe Penalties for Non-Compliance
The FTC’s warning letter to StubHub clearly states that violations of the all-in pricing rule could result in civil penalties of up to $53,088 per violation. What’s particularly concerning for StubHub is that each instance of non-compliance is considered a separate violation—meaning the company could face astronomical fines if they fail to quickly update their mobile app to comply with transparency requirements.
“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” Stated Chris Mufarrige
The rule specifically requires sellers to include all mandatory fees in the displayed price, with only taxes, shipping, and optional charges excluded. StubHub’s practice of revealing fulfillment and service fees only at the final checkout steps directly violates this requirement. The FTC emphasized that businesses were given ample time to prepare for implementation, with the rule being announced in December, published in January, and several months provided for compliance.
Broader Implications for the Ticket Industry
This enforcement action signals a new era of accountability in the ticket sales industry, where hidden fees have long been a source of consumer frustration. The FTC has made it clear that StubHub’s actions won’t be tolerated, and other platforms should take note. While StubHub faces immediate scrutiny, the Commission has indicated it will be monitoring all ticketing platforms for compliance with the new transparency rules.
“As this letter shows, the Commission will not allow companies to circumvent the rule to gain a competitive advantage.” Said Mufarrige
The Trump administration’s focus on ensuring competitive markets that deliver value to both artists and fans represents a significant change from years of unchecked pricing practices. For conservative consumers frustrated with hidden fees and deceptive pricing tactics, these enforcement actions demonstrate a commitment to fair business practices and consumer protection that stands in stark contrast to previous administrations’ hands-off approach to the entertainment industry.
