Washington, DC, sues StubHub, saying the resale platform inflates ticket prices
WASHINGTON — The Washington, D.C., attorney general sued StubHub on Wednesday, accusing the ticket resale platform of advertising deceptively low prices and then jacking up the prices with additional fees.
The practice known as “drip pricing” violates consumer protection laws in the nation’s capital, said Attorney General Brian Schwalb.
“StubHub deliberately hides the true price to boost profits at the expense of its customers,” he said in a statement.
The company did not immediately respond to an email seeking comment.
The mandatory “fulfillment and service” fees remain hidden until the end of a lengthy online purchase process that often takes more than a dozen pages, because a countdown clock creates a sense of urgency, Schwalb said.
That makes it “nearly impossible” for buyers to know the true cost of a ticket and compare it to find the best price, he said. Costs vary widely and can be as much as 40% of the advertised ticket price, the lawsuit alleges.
StubHub is one of the world’s largest resale platforms for tickets to sporting events, concerts and other live events.
Sally Greenberg, CEO of the nonprofit National Consumers League, applauded the lawsuit. “Hidden fees in the ticketing industry are really out of control. The price that’s advertised is the price that we should be paying — period,” she said. Ticket fees were also the subject of a massive Justice Department antitrust lawsuit filed against Ticketmaster and its parent company in May.
StubHub advertised the “all-in” cost of a ticket about a decade ago, but changed its mind when it found people were more likely to buy tickets at higher prices with its “drip pricing” model, he said.
Washington residents spend more per capita on live entertainment than many other major U.S. cities. Since 2015, StubHub has sold nearly 5 million tickets in Washington and generated about $118 million in revenue, the lawsuit says.
The lawsuit seeks damages and a block on the pricing practices. Schwalb organized another lawsuit last year with the Washington Commanders about the fans’ season ticket deposit.