The federal government is cracking down on hidden fees as football season approaches.
One major ticket company is already in hot water.
And StubHub just received one ominous warning from the FTC that sent shockwaves through the ticket industry.
Federal agency delivers tough message on ticket fees ahead of NFL schedule release
The Federal Trade Commission isn’t playing games when it comes to ticket pricing transparency.
Just as the National Football League prepares to announce its highly anticipated 2025 season schedule, the federal agency fired a warning shot directly at StubHub, the nation’s largest ticket exchange and resale marketplace.
In a stern letter sent Wednesday, FTC officials accused StubHub of misrepresenting the total price of tickets displayed on its website, violating the agency’s new Rule on Unfair or Deceptive Fees that went into effect this week.
"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, Director of the FTC’s Bureau of Consumer Protection. "As this letter shows, the Commission will not allow companies to circumvent the rule to gain a competitive advantage."
The timing couldn’t be more significant, as millions of football fans are expected to flood ticket websites once the NFL schedule drops.
Hidden fees could cost StubHub millions in penalties
The FTC’s new rule, which became effective May 12, requires businesses to clearly and prominently display the total price consumers must pay for event tickets upfront – including all mandatory fees and charges.
According to the warning letter, FTC staff identified instances where StubHub’s displayed ticket prices failed to include required fulfillment fees and service fees, leaving consumers in the dark about the true cost until late in the checkout process.
This deceptive pricing strategy, known as "drip pricing," has long frustrated consumers who find themselves paying substantially more than the initially advertised price.
The stakes are extraordinarily high for StubHub. The FTC didn’t mince words about potential consequences, stating in their letter that "each failure to comply with the Fees Rule is a separate violation that may be subject to civil penalties."
Those penalties could be devastating to StubHub’s bottom line – up to $53,088 per violation.
With thousands of NFL tickets expected to be sold in the coming days, non-compliance could potentially cost the company millions in fines.
Government cracks down on "junk fees" across industries
The FTC’s action against StubHub represents part of a broader Biden-era initiative to eliminate what the administration has termed "junk fees" across various industries.
The Fees Rule was announced in December 2023 and published in January, giving businesses several months to bring their practices into compliance before the May 12 effective date.
"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 remind you that each failure to comply with the Fees Rule is a separate violation that may be subject to civil penalties," the FTC’s letter warned.
The letter also "encouraged the company to immediately comply with the Fees Rule" – bureaucratic language that essentially means "fix this now or face serious consequences."
StubHub has not yet publicly responded to the FTC’s warning.
Consumers tired of surprise fees at checkout
For years, ticket buyers have expressed frustration with the widespread industry practice of revealing mandatory fees only at the final stages of checkout.
A ticket initially advertised at $100 might ultimately cost $125 or more after service fees, facility charges, and processing fees are added – a practice that makes comparison shopping nearly impossible.
Consumers often find themselves investing significant time selecting seats only to discover the actual price is much higher than expected, creating what economists call a "sunk cost" that discourages shoppers from abandoning the purchase despite the surprise increase.
The FTC’s new rule requires companies to display the total price, with only taxes, shipping, and truly optional add-ons excluded from the upfront price.
This change forces ticket sellers to compete on the actual final price rather than manipulating consumers with artificially low initial prices followed by unavoidable fees.
For football fans eagerly awaiting the 2025 NFL schedule release, the FTC’s warning to StubHub may signal a new era of transparency in ticket pricing – if the company heeds the warning.
Whether StubHub and other ticket sellers will fully comply remains to be seen, but one thing is clear: the federal government is watching closely, and the penalties for deception could be severe.