New York-based ticket resale platform StubHub is facing a new lawsuit that accuses the company of engaging in deceptive practices by hiding mandatory fees until the final stages of the purchase process.
Washington, D.C. Attorney General Brian Schwalb, who filed the complaint Wednesday, called StubHub’s tactics “drip pricing,” a method of advertising artificially low prices and then adding hefty service fees.
The legal filing identified one instance where end-of-contract fees totaled more than 40% of the advertised price, The Hollywood Reporter reported.
The complaint argues that this practice makes it nearly impossible for consumers to accurately compare prices with other platforms because the total cost is only revealed after going through a lengthy and confusing checkout process.
“StubHub intentionally hides the true price to increase profits at the expense of its customers,” Schwalb said in a statement.
The lawsuit notes that StubHub also uses a false sense of urgency with a countdown timer, pushing customers to complete their purchases without fully understanding the final cost.
Schwalb wants to force StubHub to change its pricing practices, demanding more than $100 million for profiting from hidden fees, as well as damages for DC consumers.
In response, StubHub insisted that its practices are consistent with industry standards and legal requirements.
“We strongly support federal and state solutions that enhance existing laws to empower consumers, such as requiring uniform global pricing across all platforms,” the company added in a statement.
The lawsuit comes amid growing scrutiny of the ticketing industry. The Justice Department recently filed an antitrust lawsuit against Live Nation in May over similar concerns about hidden fees and market dominance.
With News Wire Services
