The only exception to the rule is that total prices do not have to show costs such as shipping, government charges, and taxes, which can be disclosed later, but before asking for payment.
“We have identified instances in which StubHub’s displayed ticket prices do not include all mandatory fees and charges,” it said. “The mandatory fees and charges StubHub has omitted from its price displays, such as fulfillment fees and service fees, do not appear to be covered by any permissible exemption.”
The letter stated that the agency “strongly” encouraged StubHub to soon bring all of the company’s ads, displays, and offers into compliance with the new rules.
FTC warned that violations can lead to civil penalties of up to $53,088 per violation as well as federal enforcement action.
“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 note that each failure to comply with the Fees Rule is a separate violation that may be subject to civil penalties,” the FTC said.
Chris Mufarrige, director of the FTC’s Bureau of Consumer Protection, said companies have already been provided with “sufficient time” to prepare for compliance with the new regulations and update their advertising.
“As this letter shows, the Commission will not allow companies to circumvent the rule to gain a competitive advantage.”
Tightened Ticketing Rules
FTC’s crackdown on ticketing malpractices follows President Donald Trump’s signing of an executive order on March 31 to combat unfair practices in the live entertainment market.The order said that America’s live concert and entertainment industry has become “blighted” by middlemen who impose unnecessary charges without adding much value.
“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 the order.
“When this occurs, the artists do not receive any profit. All profits go solely to the scalper and the ticketing agency.”
In the order, Trump instructed the Attorney General and the FTC to ensure that competition laws are enforced appropriately in the industry.
Under BOTS, it is illegal to bypass the maximum ticket purchasing limits set by an issuer or use fake identities to purchase tickets.
“Competitive live entertainment markets should deliver value to artists and fans alike,” said Assistant Attorney General Abigail Slater of the Justice Department’s Antitrust Division.
“We will continue to closely examine this market and look for opportunities where vigorous enforcement of the antitrust laws can lead to increased competition that makes tickets more affordable for fans while offering fairer compensation for artists.”
