[UPDATED] StubHub, the largest ticket reseller in the US, will refund $10 million to consumers following a U.S. Federal Trade Commission (FTC) investigation into deceptive ticket pricing practices that obscured the cost of tickets until the very end of the checkout process.
The FTC filed suit in the federal Southern District of New York.
While $10 million is a victory for fans and the FTC, it's just a slap on the wrist for the StubHub who reported $1.7 billion in revenue last year.
StubHub (STUB) stock was down by as much 9% midday Thursday. It recovered some, closing the day down 3% at $6.17, more than 75% off its 52 week high of $27.89.
Crackdown on "Drip Pricing"
The FTC’s complaint centers on "drip pricing" - a tactic where a company advertises a low base price but waits until the final stages of a transaction to reveal mandatory service and processing fees. According to the FTC, StubHub failed to prominently disclose the total "all-in" price, violating the agency’s Rule on Unfair or Deceptive Fees which went into effect in May 2025.
The FTC specifically highlighted a period between May 12 and May 14, 2025, where StubHub allegedly failed to provide total pricing in its initial displays for various live events.
StubHub Responds
“We have long supported all-in pricing because it provides clarity for fans," StubHub said in a statement. "This settlement covers a limited number of transactions, spanning just three days in May 2025, where some listings on our site may have displayed ticket prices exclusive of fees. While we strongly disagree with the FTC’s view of the case, we are addressing their concerns by refunding a portion of those buyers’ fees.”
StubHub's rapid contrition could encourage more lawsuits demanding refunds and damages.
A New Standard for the Ticketing
The $10 million settlement marks a step forward in the federal government’s war on junk fees. For live event organizers, the message is clear: transparency is no longer optional.
The FTC’s "Fees Rule" now requires all ticketing platforms to:
- Disclose the total price upfront, including all mandatory fees.
- Display the total price more prominently than any other pricing information (like the "base" price).
- Clearly explain the purpose of any excluded fees before the consumer agrees to pay.
Who is Eligible for a Refund?
StubHub is required to establish a consumer redress program. The refunds will target two main groups of eligible buyers:
- Consumers who purchased tickets between May 12 and 14, 2025, where the total price was not disclosed on the initial pricing display.
- Other consumers who purchased tickets during that same window and were affected by the lack of transparency.
StubHub must complete the redress process within 90 days of the order.
Hypebot's Bottom Line
For artists, managers, and promoters, transparent pricing can sometimes be a double-edged sword. While "all-in" pricing can lead to sticker shock for fans, it also builds long-term trust and reduces the frustration that often leads to cart abandonment.
As the FTC continues to finally patrol the ticketing landscape and more state and federal initiatives take shape, ticketing platforms that fail to adapt risk not just heavy fines, but a collapse loss of fan confidence.
