Business

StubHub to refund $10M to consumers over FTC hidden charges lawsuit

StubHub will refund $10 million to consumers and overhaul the way it displays ticket prices after the Federal Trade Commission accused the company of deceptively advertising live event tickets without fully disclosing mandatory fees up front.

“The Commission's Financial Rule clearly states that the total price of tickets to a live event must be disclosed in advance so that consumers can make informed purchasing decisions,” wrote the Director of the FTC's Bureau of Consumer Protection Christopher Mufarrige in a statement. “Price transparency is essential in a free and competitive marketplace. Today's settlement underscores the Commission's commitment to ensuring that consumers pay the price they are promised.”

The company advertised ticket prices on its website over three days last May “without clearly and transparently disclosing how much consumers would actually pay, including all mandatory fees,” the FTC wrote in a complaint and proposed ruling filed in the US District Court for the Southern District of New York.

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StubHub office window in midtown Manhattan.

A StubHub spokesperson said the company disagrees with the FTC's view on the case but is refunding part of the fees paid by affected consumers to address the agency's concerns.

“This agreement covers a limited number of transactions, lasting just three days in May 2025, where other listings on our site may show ticket prices without fees,” the spokesperson said.

The agency began implementing the “Fees Rule” in May 2025, requiring businesses to clearly disclose the price of live event tickets.

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The FTC said it sent a warning letter to the ticketing agency after the rule was drafted.

With this settlement, the company will provide financial relief to eligible buyers and the order requires StubHub to prominently display the price on its site.

The agency stepped up its enforcement efforts following the Trump administration's executive order on ticketing in March of last year, which directs the FTC to “take appropriate action…

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“My administration is committed to making the arts and entertainment that enrich the lives of Americans as accessible as possible,” Trump's executive order said. “The accommodation-seeking practices surrounding the ticketing industry run counter to this objective. They harm consumers and take advantage of market distortions that should not be allowed to continue.”

The FTC highlighted the sale of high-demand NFL tickets around May 14, 2025, when the league's schedule was announced, as an example of the alleged violation.

The settlement will require StubHub to fund a $10 million consumer settlement program for eligible consumers who purchased tickets to US live events between May 12 and 14, 2025. Within 90 days of the order, the company must provide refunds to two groups: consumers whose total ticket price was not disclosed in the original ticket display, and all other consumers who purchased that price of tickets.

FTC Chairman Andrew Ferguson, FTC building

Andrew Ferguson became the chairman of the FTC under President Donald Trump's second administration. (Kevin Dietsch/Getty Images; Getty)

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In addition to financial relief, the proposed order would prohibit StubHub from misrepresenting the price of goods or services, the type or amount of fees, the final payment amount, and other material facts, including refund and cancellation policies.

The commission voted 2-0 to approve the appeal and issued a final order. The lawsuit was filed in the Southern District of New York. The settlement will take effect once it is approved by a district court judge.

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