FTC’s Junk Fees Rule forces clearer ticket prices — agency moves to hold StubHub accountable in alleged settlement over hidden fees
The FTC’s Junk Fees Rule, effective May 12, 2025, requires total-price disclosure for live-event tickets and short-term lodging, targeting hidden fees and drip pricing; the agency alleges StubHub failed to show total prices during a three-day period.
Key takeaways
- The rule requires sellers to display the total price — including mandatory fees — prominently up front (InsideClassActions, Foley & Lardner LLP).
- The FTC alleges StubHub displayed prices exclusive of mandatory fees during May 12–14, 2025, and the proposed settlement would fund a $10 million redress program for eligible buyers.
- Enforcement relies on Section 18 rulemaking and Section 5 authority; firms must reform site displays, partner contracts and intermediary pricing feeds (Perkins Coie).
Overview
On December 17, 2024, the Federal Trade Commission finalized the Junk Fees Rule, published in the Federal Register on January 10, 2025, with enforcement beginning May 12, 2025. The regulation aims to eliminate “drip pricing” by requiring that the all-in total price — including mandatory service, processing, delivery or convenience fees — be displayed clearly and conspicuously whenever a price is offered, displayed or advertised.
What the FTC Junk Fees Rule requires
Key requirements include:
- Sellers must make the total price “difficult to miss,” including mandatory fees in initial displays; taxes and shipping are typically excluded where applicable (InsideClassActions, Foley & Lardner LLP, Brushfire).
- Itemized or dynamic pricing is permitted only if the all-in total remains clear and prominent; optional fees may be excluded from the total only when clearly labeled and conspicuous.
- The rule covers both consumer and B2B transactions and requires suppliers to provide accurate total pricing to intermediaries.
- The agency used Section 18 rulemaking for a sector-focused rule following a broader 2022 proposal, giving businesses lead time before enforcement.
Alleged StubHub settlement and company response
The FTC filed a complaint and proposed settlement in the U.S. District Court for the Southern District of New York alleging that during May 12–14, 2025, some StubHub listings displayed prices exclusive of mandatory fees on initial displays. The Commission’s Bureau of Consumer Protection Director Christopher Mufarrige emphasized that upfront total-price disclosure is essential to a competitive market.
“Total price upfront disclosure is essential to a free and competitive marketplace,” the FTC statement says, underscoring the agency’s enforcement posture.
StubHub disputed the FTC’s characterization but agreed to refund a portion of affected buyers’ fees and to fund a $10 million consumer redress program for eligible U.S. buyers who purchased live-event tickets during the three-day period. The proposed settlement would also require more prominent total-price displays on the platform.
Enforcement context: agency push and White House direction
The Junk Fees Rule follows political and regulatory momentum, including a March executive order on ticketing urging price transparency across primary and secondary markets. The FTC issued warning letters to ticketing platforms after finalization and before enforcement, signaling near-term scrutiny. Legal experts note the agency will also rely on Section 5 authority against deceptive omissions where appropriate (Perkins Coie, Foley & Lardner LLP).
What this means for platforms and consumers
For consumers: clearer up-front totals should reduce checkout surprises and lower abandonment.
For platforms: required changes include site design updates, clearer advertising, revised partner agreements and guarantees that intermediaries pass accurate totals through the sales chain. Noncompliance could lead to enforcement actions, monetary redress and mandated business-practice changes.
Implications for the world
Economic: U.S.-facing ticketing platforms will face compliance costs and may adopt uniform global displays to avoid confusion and reputational risk.
Political & regulatory: international regulators — including EU authorities — may watch the U.S. action and consider similar transparency rules.
Social & cultural: clearer pricing can help fans, particularly cross-border buyers, avoid surprises and improve access to events by removing last-minute cost barriers.
Practical tips for consumers
- Expect a visible all-in total when browsing U.S. ticketing sites after May 12, 2025.
- If a U.S. site still shows a lower headline price, consumers can report the practice to the FTC.
- International buyers of U.S. tickets should verify whether final checkout prices include mandatory fees and review refund policies for optional add-ons.
Reporting and verification
Readers should note that while the rule, its requirements, and FTC enforcement posture are widely documented in legal analyses and industry reporting, some specific details in the FTC complaint and proposed StubHub settlement are best verified by consulting the agency’s filings and the court docket in the U.S. District Court for the Southern District of New York.
Sources and further reading
- InsideClassActions — Hidden No More: FTC Finalizes Rule Restricting Hidden Fees for Live Event Tickets and Short-Term Lodging
- Brushfire — Breaking: FTC Bans Hidden Ticket Fees
- Foley & Lardner LLP — FTC Final Junk Fees Rule: Live Event Tickets & Short-Term Lodging
- Perkins Coie — FTC Junk Fee Rule: Here Along Wave of State Laws
- Federal Register — January 10, 2025 publication (search notice)
