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StubHub Agrees to Pay $10 Million to Settle FTC Allegations on Ticket Pricing Practices
StubHub has agreed to pay $10 million to resolve Federal Trade Commission allegations that it violated the FTC Act and the Rule on Unfair or Deceptive Fees. The agency claimed the company advertised ticket prices on its website without clearly disclosing the total cost, including mandatory fees, upfront. The settlement addresses these practices affecting consumers purchasing event tickets.
Apr 9, 4:04 PM·2m read1 source
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StubHub, an online ticket resale platform, has reached a settlement with the Federal Trade Commission (FTC) over allegations related to its pricing disclosures. According to TechCrunch, the company will pay $10 million to resolve claims that it violated the FTC Act and the agency's Rule on Unfair or Deceptive Fees.
The FTC alleged that StubHub advertised ticket prices without clearly showing the total cost, including all mandatory fees, at the outset.
The violations stemmed from StubHub's website practices, where initial prices displayed did not include additional fees that consumers were required to pay. TechCrunch reported that these practices occurred on the platform's site, potentially misleading users about the final amount for tickets to events such as concerts and sports games.
The FTC's investigation focused on transparency in e-commerce pricing for secondary ticket markets.
Allegations The FTC enforces consumer protection laws to prevent unfair or deceptive business practices in the marketplace.
In this case, the agency examined how ticket sellers like StubHub present costs to buyers. The Rule on Unfair or Deceptive Fees requires that all mandatory charges be disclosed before a consumer commits to a purchase. StubHub operates as a marketplace connecting buyers and sellers of tickets for live events worldwide.
The platform handles millions of transactions annually, affecting a broad range of consumers including sports fans, music enthusiasts, and theatergoers. Non-disclosure of fees could lead to surprise charges at checkout, impacting budgeting for these purchases.
the settlement, StubHub must pay $10 million, which the FTC intends to use for consumer redress if feasible.
