WASHINGTON (NewsNation) — 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.
Attorney General Brian Schwalb said the practice known as “drip pricing” violates consumer protection laws in the nation’s capital.
“StubHub uses predatory ‘drip pricing’ to lure, pressure, and exploit customers — violating DC consumer protection laws. StubHub’s illegal junk fee scheme must end,” a statement from Schwalb read in part.
The company said it is disappointed to be targeted, maintaining its practices are consistent with the law and competing companies as well as broader industry norms.
“StubHub is committed to creating a transparent, secure, and competitive marketplace to benefit consumers. We are disappointed that the DC Attorney General is targeting StubHub when our user experience is consistent with the law, our competitors’ practices, and the broader e-commerce sector. We strongly support federal and state solutions that enhance existing laws to empower consumers, such as requiring all-in pricing uniformly across platforms,” according to a statement from the company to NewsNation.
The lawsuit, meanwhile, says StubHub hides mandatory “fulfillment and service” fees 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.
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, which is based in New York, is one of the world’s largest resale platforms for tickets to sports, concerts and other live events.
The Associated Press contributed to this report.
