The Attorney General of Washington, D.C., filed a lawsuit against StubHub, a ticket resale platform, alleging deceptive pricing practices. Attorney General Brian Schwalb accused StubHub of engaging in “drip pricing,” which involves advertising low prices and then adding significant fees later in the purchasing process, violating consumer protection laws in the capital.
According to Schwalb, StubHub’s practice of hiding mandatory fees until the end of a lengthy online purchasing process, often with a countdown timer creating urgency, makes it challenging for buyers to determine the true cost of a ticket and compare prices effectively. The lawsuit claims that fees can amount to over 40% of the advertised ticket price.
StubHub, one of the largest ticket resale platforms globally for sports, concerts, and live events, did not immediately respond to requests for comment on the lawsuit.
Sally Greenberg, CEO of the National Consumers League, praised the lawsuit, stating that hidden fees in the ticketing industry have become excessive, and consumers should only pay the advertised price without additional charges. Ticket fees were also a focal point in an antitrust lawsuit filed by the Justice Department against Ticketmaster and its parent company earlier in the year.
The lawsuit against StubHub aims to seek damages and halt the deceptive pricing practices. Schwalb, who settled a lawsuit with the Washington Commanders last year over fans’ season ticket deposit money, highlighted that StubHub previously advertised the “all-in” cost of tickets but switched to the “drip pricing” model, which tends to lead to higher ticket sales at increased prices. Washington residents have significantly contributed to StubHub’s revenue, with the platform selling nearly 5 million tickets in the city since 2015, totaling about $118 million in fees.
