WASHINGTON — The attorney general for Washington, D.C., sued StubHub on Wednesday, accusing the ticket resale platform of advertising deceptively low prices and then ramping up prices with extra fees.
The practice known as “drip pricing” violates consumer protection laws in the nation’s capital, Attorney General Brian Schwalb said.
“StubHub intentionally hides the true price to boost profits at its customers’ expense,” he said in a statement.
The company did not immediately respond to an email seeking comment.
The mandatory “fulfillment and service” fees are hidden until the end of a lengthy online purchasing process that often requires more than a dozen pages to complete as a countdown timer creates a sense of urgency, Schwalb said.
That makes it “nearly impossible” for buyers to know the true cost of a ticket and compare to find the best price, he said. Fees vary widely and can total more than 40% of the advertised ticket price, the lawsuit alleges.
StubHub is one of the world’s largest resale platforms for tickets to sports, concerts, and other live events.
Sally Greenberg, CEO of the nonprofit advocacy group National Consumers League, applauded the lawsuit. “Hidden fees in the ticketing industry have truly gotten out of control. The price that is advertised is the price that we should pay — full stop,” she said. Ticket fees were also part of a sweeping antitrust lawsuit the Justice Department filed against Ticketmaster and its parent company in May.
StubHub used to advertise the “all-in” cost of a ticket about a decade ago, but changed after finding that people are more likely to buy tickets at higher prices with the “drip pricing” model, he said.
Washington residents’ per-capita spending on live entertainment outpaces that of many other major U.S. cities and since 2015, StubHub has sold nearly 5 million tickets in Washington and reaped about $118 million in fees, the suit states.
The lawsuit seeks damages and to block the pricing practices. Schwalb settled another lawsuit last year with the Washington Commanders over fans’ season ticket deposit money.
The city of Washington, DC has recently filed a lawsuit against ticket resale platform StubHub, accusing the company of engaging in deceptive practices that artificially inflate ticket prices. The lawsuit, which was filed in the Superior Court of the District of Columbia, alleges that StubHub has been charging hidden fees to consumers, leading them to pay more than the advertised ticket price.
According to the complaint, StubHub has been adding fees to tickets at the final stage of the purchasing process, without clearly disclosing these additional charges upfront. This practice, known as “drip pricing,” has been criticized by consumer advocates for misleading customers and making it difficult for them to compare prices across different ticketing platforms.
The lawsuit also accuses StubHub of using misleading marketing tactics to lure customers into buying tickets at inflated prices. The company allegedly advertises tickets at lower prices than what consumers ultimately end up paying after fees are added on. This has led to complaints from consumers who feel they have been misled by the platform’s pricing practices.
In a statement, Washington, DC Attorney General Karl Racine said, “StubHub has engaged in a pattern of deceptive and misleading conduct that has harmed consumers in the District of Columbia. We are taking action to hold the company accountable and ensure that consumers are not misled when purchasing tickets online.”
StubHub has responded to the lawsuit by defending its pricing practices and stating that it is committed to transparency and providing a fair marketplace for ticket buyers and sellers. The company has also emphasized that it offers a guarantee to refund customers who are unhappy with their ticket purchases.
This lawsuit is just the latest in a series of legal challenges faced by StubHub in recent years. The company has been criticized for its high fees and opaque pricing practices, leading to calls for greater regulation of the ticket resale industry.
As the case moves forward, it will be interesting to see how the court rules on the allegations against StubHub and what impact this may have on the broader ticketing industry. In the meantime, consumers are advised to be vigilant when purchasing tickets online and to carefully review all fees and charges before completing their transactions.
