StubHub to pay $10M to settle FTC allegations over ‘deceptive’ ticket pricing

Online ticket marketplace StubHub has agreed to pay $10 million to settle allegations from the Federal Trade Commission that it used deceptive pricing practices, the agency announced on January 15, 2025. The settlement resolves claims that the company, based in San Francisco, California, violated consumer protection laws by advertising ticket prices on its website without clearly disclosing the full cost with all mandatory fees included upfront, misleading consumers about the true price they would pay. The FTC's complaint detailed that StubHub advertised tickets with a prominent base price but only revealed substantial additional fees—such as service fees, processing fees, and delivery charges—later in the purchasing process, often just before the final payment page. This practice, known as 'drip pricing,' meant consumers were presented with a significantly higher total cost than the initially advertised price, which the agency argued was a violation of the FTC Act and its Rule on Unfair or Deceptive Fees. The $10 million payment will be used to provide refunds to affected consumers who purchased tickets between 2016 and 2023. This settlement is part of a broader regulatory crackdown on 'junk fees' across various industries, including live events, hospitality, and telecommunications. The Biden administration has prioritized eliminating hidden fees that inflate consumer costs, and the FTC has intensified enforcement actions against companies employing such tactics. For StubHub, this agreement mandates clearer, upfront pricing disclosures moving forward, requiring all mandatory fees to be included in any advertised price. The company stated it is committed to transparency and has already implemented changes to its pricing display to comply with the settlement terms, though it did not admit to any wrongdoing as part of the agreement.