The attorney general of Washington, D.C., has filed an official lawsuit against ticketing company StubHub. According to the lawsuit, the company has been involved in deceptive pricing practices over the years, making customers pay much more than they should at checkout.
However, StubHub has denied these allegations, claiming that the attorney general was” targeting” the company.
Why Did the Washington, D.C. Attorney General File a Lawsuit Against Stubhub?
The Washington D.C. Attorney General, Brian Schwalb, filed a lawsuit against StubHub, the online ticket exchange company, towards the end of July. According to the suit, he made this legal action claiming that StubHub has been using deceptive means to extort money from its customers.
Therefore, Schwalb believes this should not go unchecked, and the company should be held accountable for deceiving customers and making them pay a lot of money over many years.
The Allegations of the Lawsuit
The lawsuit’s allegations are very direct. It claims that StubHub has been using deceptive advertising to lure customers with very low prices, only to get them to pay higher fees during the checkout process.
Therefore, customers choose the platform because of the advertised low prices but pay higher fees at checkout, making them spend even more money than they normally should. Unfair pricing is another allegation that the company faces in the lawsuit.
“Drip Pricing” on Ticket Prices
According to the lawsuit, StubHub has been using “drip pricing” to get customers to use its platform over other competitors’ platforms. Drip pricing is a commonly criticized practice in which a company advertises very low prices to attract customers but puts them through “a series of needless steps while a countdown clock creates a false sense of urgency.”
Then, the company adds highly inflated fees to the end, making the customer pay very high fees at the end of the day.
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The Company Changed Pricing Systems
According to a statement by Schwalb’s office, StubHub used an accurate pricing system from 2024 to 2015. However, things changed when the company realized the chances of people buying tickets if the additional fees were hidden until checkout were higher than if they were initially added.
That was when StubHub switched to a drip pricing method that has now seen customers spend more money than they ought to under the guise of “fulfillment and services fees.”
Two Violations
The lawsuit by the Washington D.C. Attorney General also alleged that the commas violated two consumer protection procedures acts with its drip pricing method. The first is a violation for unfair acts or practices, while the second is for deceptive acts or practices.
Therefore, Schwalb hopes to bring the company to justice for violating these two important acts. An injunction in the suit requires the company to remedy its violations, pay damages and restitution, and pay statutory civil penalties.
A Cited Example in the Complaint
The complaint also cited an example showing the difference between the prices of the tickets advertised by StubHub and the amount the customer pays at the end of the checkout process.
It shows a pair of tickets advertised as $178 per ticket or $356 for the pair. As the clock continued to count down at the checkout page, it showed that the total price of the two tickets was now $497, a 40% increase compared to what was advertised.
Washington D.C. Is Highly Affected
The attorney general also argued that Washington, D.C., is highly affected by these unfair prices when compared to other cities like Boston, New York City, Los Angeles, and Chicago.
The report said, “The District of Columbia is particularly impacted by StubHub’s illegal conduct, as residents and visitors spend more per capita on live entertainment in Washington, D.C., than those in many other U.S. cities.”
$118 Million From Hidden Fees
The lawsuit also highlighted that StubHub has not explained why the fees are so much higher or how they are calculated during checkout.
Therefore, these fees are just added at an unfair rate, ripping off customers. The AG’s office revealed that since they started using the drip pricing method, StubHub has sold over 5.5 million tickets and has also gotten an estimated $118 million in hidden fees tricking customers.
Brian Schwalb’s Statement
The ticketing platform is valued at over 16 billion dollars and is one of the tip ticketing services in the country. However, Schwalb believes that the company is not to be trusted because of the unexplained fees it adds at checkout.
The AG said in a statement, “This is no accident — StubHub intentionally hides the true price to boost profits at its customers’ expense.” StubHub also faced a federal class action lawsuit in January for misleading customers on ticket prices.
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StubHub’s Official Statement
However, the ticketing company has released a statement to Forbes denying these allegations. It said that it was “disappointed” and felt “targeted” by the attorney general.
The company said, “StubHub is committed to creating a transparent, secure, and competitive marketplace to benefit consumers. We are disappointed that the D.C. Attorney General is targeting StubHub when our user experience is consistent with the law, our competitors’ practices, and the broader e-commerce sector.”
Are StubHub Tickets Verified?
For over twenty years, StubHub has been selling tickets to several people around the country. All its tickets are verified, and StubHub is a reliable service for buying and selling tickets. If a seller on StubHub does not deliver your tickets, the company will penalize the vendor, they will lose the sale, and you will be refunded.
The site also has a FanProtect Guarantee clause that helps people get valid tickets, ticket resales, and refunds when necessary.
How Much Does StubHub Charge To Sell Tickets?
StubHub has registered ticket sellers and buyers. According to the company’s website, StubHub charges a 15% commission to the seller and a 10% service fee to the buyer. However, the company does not charge sellers for listing tickets on the platform.
That is free but may change over time depending on ticket supply and marketing costs. Fees may also depend on the event, price, and delivery method.
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