For those of us who grew up playing Little League, we all envisioned that moment of playing in a Major League Stadium with fans chanting, or booing, and singing “Take Me Out to the Ballgame!” Although 2-3 million play Little League Baseball and only 1,200 players are on an active roster, this means that 1 in 200,000 make a Major League Baseball roster. Therefore, less than 0.001% of Little League players reach the majors.
That means the majority of us will ultimately spend our hard-earned money buying tickets to major sporting events rather than playing in front of the fans.
Based on this settlement, when you sit down at your computer or pull out your phone and try to buy tickets, the “Total Price” displayed should no longer be a deceptively advertised ticket price.
What is the “Fees Rule”?
The Federal Trade Commission’s (FTC) “Fees Rule,” (formerly called the “Junk Fees Rule”) took effect in May 2025. While it applies only to hotels and ticketing agencies like StubHub, it applies broad FTC disclosure concepts about advertised prices that should now sound familiar to dealers. The Rule targets so-called “junk fees,” which are fees that you are required to pay, but that are not displayed as part of an advertised price — and it requires businesses to show the full, upfront price of tickets, including all mandatory fees, rather than adding charges later in the checkout process.
Settlement of Claims
According to the release, StubHub agreed to refund $10 million to consumers after the agency found the company misrepresented ticket prices by failing to include mandatory service and fulfillment fees upfront. This type of “drip pricing,” where fees are revealed late in the checkout process, violates the rule because initial price displays can mislead consumers and affect competition.
In addition to the settlement, StubHub is prohibited from the following:
- Offering, displaying, or advertising any price of a good or service without clearly and conspicuously disclosing the total price;
- Failing to disclose the total price more prominently than any other pricing information;
- Failing to clearly and conspicuously disclose the amount of any fees or charges that have been excluded from the total price and what they are for, as well as the final payment amount, before the consumer agrees to pay for a product or service; and
- Violating the Commission’s Fees Rule.
Does This Apply to Dealers?
The Fees Rule does not apply directly to dealers, but these concepts should sound familiar. This settlement is the latest in a long series of actions that the FTC (along with many states) have taken against companies of all kinds based on a failure to display an “all-in” price in advertisements. Of course, the recent FTC warning letter to 97 auto dealership groups nationwide was the most direct action of its kind against dealers. Watch our recent webinar about this topic.
Our Guardian product can help. Guardian utilizes AI to ensure that all your ads are scanned and reviewed for compliance with federal law as well as all 50-state advertising laws. This includes looking at your price advertising to ensure compliance with the FTC’s letter and avoiding so-called “junk fees.” Contact ComplyAuto today to learn more.