DC Attorney General Sues StubHub Over Hidden Junk Fees

District of Columbia Attorney General Brian Schwalb has filed a lawsuit against StubHub, accusing the ticket resale giant of deceiving consumers with hidden junk fees during the checkout process. According to the Washington Post, Schwalb alleges that the company is engaging in “deceptive, manipulative and unfair practices” by adding unexpected fees at the end of a lengthy transaction.

The lawsuit, initiated on Wednesday, July 31, highlights that StubHub fails to provide clear and accurate information about the purpose and calculation of these fees, a practice known as “drip pricing.” Drip pricing involves advertising a lower initial price, which eventually increases due to additional fees disclosed late in the purchase process.

Per the Washington Post, the specific fees in question are labeled as “fulfillment and service fees,” which are only revealed after customers navigate through numerous checkout pages. Schwalb points out that this extensive process includes a countdown timer, which the lawsuit claims instills a “false sense of urgency,” pressuring consumers into completing their purchase to avoid restarting the process and potentially losing their tickets.

“Faced with this inflated total and the countdown timer threatening to make them start the whole process over, consumers are pressured into the purchase out of fear that they risk losing the tickets,” Schwalb stated during the announcement of the lawsuit.

The lawsuit meticulously documents the entire StubHub checkout process, illustrating the step-by-step pressure tactics used. Schwalb’s objective is to halt StubHub’s alleged deceptive practices and secure restitution for affected consumers. He claims that since 2015, when StubHub shifted from a more transparent “all-in” pricing model to the drip pricing strategy, the company has accrued $118 million in hidden fees from D.C. consumers.

Source: The Washington Post