Washington, D.C.’s Attorney General, Brian Schwalb, has initiated legal action against StubHub, accusing the ticket resale platform of engaging in deceptive pricing practices. The lawsuit, filed in the Superior Court of the District of Columbia, alleges that StubHub uses a tactic known as "drip pricing" to mislead consumers by advertising deceivingly low ticket prices to attract buyers, that escalate significantly due to hidden fees revealed only at the end of the purchasing process.
In addition to “drip pricing,” the checkout process features a timer to urge consumers to complete their purchase hastily. The lawsuit claims that only at the final stage of purchase are buyers confronted with "fulfillment and service" fees that substantially increase the total cost, often by more than 40%. These fees are not transparently explained, making it challenging for consumers to compare prices across different platforms and impeding their ability to make quick and informed decisions.
One illustrative example from the lawsuit details how StubHub advertised two tickets for $356, which ultimately cost $497 after the hidden "fulfillment and service" fees were added. These fees are allegedly a front to disguise unnecessary additional charges that are actually guided by demand and various other market dynamics. The complaint further asserts that StubHub does not disclose how these fees are calculated.
The complaint emphasizes that StubHub previously employed an "all-in" pricing model in 2014, which included all mandatory fees in the advertised ticket prices. However, the company reverted to the "drip pricing" model after internal tests showed that consumers were more likely to complete purchases—and at higher prices—when fees were not disclosed until the end of the process.
Attorney General Schwalb argues that these practices breaches D.C. consumer protection laws. He is seeking a court order to compel StubHub to alter its checkout process to include all mandatory fees upfront, thereby providing true transparency in ticket pricing. Additionally, the lawsuit demands the disgorgement of over $100 million in profits gained through these hidden fees and seeks damages.
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