Washington DC is suing ticket reseller StubHub for “deceptive pricing,” claiming that the practice has cost residents $118m in hidden fees since 2015.
The lawsuit, which alleges that Stubhub sold more than 5.5 million tickets to DC residents since that year, comes amid increasing criticism of ticket-selling platforms for so-called “junk” fees.
DC Attorney General Brian Schwalb initiated the lawsuit, claiming that the deceptive advertising of low ticket prices tricks consumers into paying much more after a long and complicated checkout process. The process can include as many as 12 web pages as well as a timer to push consumers to continue with the purchasing process, a practice the DC attorney general argues is in violation of local consumer protection laws.
“For years, StubHub has illegally deceived District consumers through its convoluted junk fee scheme,” Schwalb said in a statement . “StubHub lures consumers in by advertising a deceptively low price, forces them through a burdensome purchase process, and then finally reveals a total on the checkout page that is vastly higher than the originally advertised ticket price.”
The lawsuit was filed on Wednesday in DC Superior Court. Schwalb argued that the incomplete prices advertised prevent comparison shopping. StubHub has rejected all claims of wrongdoing.
“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,” the company said. “We strongly support federal and state solutions that enhance existing laws to empower consumers, such as requiring all-in pricing uniformly across platforms.”
The legal filing is increasing the focus on a major ticket seller in Washington, a city where live events generate significant income for both ticket promoters and venues.
The DC attorney general is looking to get an injunction as well as unspecified civil penalties and the return of the revenue it made via supposedly illicit practices.
StubHub has faced scrutiny of its pricing practices in the past. A 2019 class-action lawsuit, filed in San Francisco, also argued that the way that prices are shown is deceptive. While StubHub rejected those allegations, the company settled the lawsuit, The Washington Post reported.
“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,” said Sally Greenberg, CEO of nonprofit advocacy group, the National Consumers League.
Schwalb referred to the deceptive practice as “drip pricing”. The term has been used in other DC legal filings, like in 2019 when previous attorney general Karl Racine sued Marriott for allegedly shielding the true price of hotel stays by adding so-called “resort” and “amenity” fees after a room had already been booked, leading to a higher than advertised price. That lawsuit is ongoing.
The Washington Nationals Major League Baseball team was sued in July by the National Consumers League, over ticket fees that the group argued were not initially displayed.
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