Attorney General Sues StubHub for Deceptive Pricing Practices
Washington, D.C. Attorney General Brian Schwalb has filed a lawsuit against StubHub, accusing the ticket resale platform of engaging in deceptive pricing practices. The lawsuit alleges that StubHub advertises deceptively low prices for tickets and then adds additional fees, a practice known as “drip pricing.” According to Schwalb, this violates consumer protection laws in the nation’s capital.
In a statement, Schwalb stated that StubHub intentionally conceals the true price of tickets, boosting their profits at the expense of customers. The company has not yet responded to the allegations.
The lawsuit highlights the issue of “fulfillment and service” fees, which are hidden until the end of the online purchasing process. This process often requires users to navigate through multiple pages, creating a sense of urgency with a countdown timer. As a result, buyers find it nearly impossible to determine the true cost of a ticket and compare prices effectively. The lawsuit further alleges that these fees can amount to more than 40% of the advertised ticket price.
StubHub is a prominent ticket resale platform, offering tickets for sports events, concerts, and other live entertainment. The company used to advertise the “all-in” cost of a ticket approximately ten years ago but switched to the “drip pricing” model after discovering that customers were more likely to purchase tickets at higher prices.
The lawsuit has received support from Sally Greenberg, CEO of the nonprofit advocacy group National Consumers League. Greenberg believes that hidden fees in the ticketing industry have become excessive and that consumers should pay only the advertised price, without any additional fees.
This is not the first time ticket fees have come under scrutiny. In May, the Justice Department filed a sweeping antitrust lawsuit against Ticketmaster and its parent company, which also included allegations related to ticket fees.
The lawsuit against StubHub highlights the significant per-capita spending on live entertainment by Washington, D.C. residents. The city has seen substantial ticket sales through StubHub, with nearly 5 million tickets sold since 2015, resulting in approximately $118 million in fees for the platform.
The lawsuit seeks damages and aims to block StubHub from continuing its deceptive pricing practices. Attorney General Schwalb settled another lawsuit last year with the Washington Commanders over fans’ season ticket deposit money.
In conclusion, the lawsuit filed by the Washington, D.C. Attorney General against StubHub sheds light on the issue of deceptive pricing practices in the ticket resale industry. By concealing additional fees until the end of the purchasing process, StubHub makes it difficult for buyers to determine the true cost of tickets. The lawsuit seeks to protect consumers and ensure transparency in ticket pricing.
