StubHub is facing a caller suit that accuses the ticketing work of hiding fees from customers until the precise extremity of the purchasing process. In the suit filed connected Wednesday, District of Columbia Attorney General Brian L. Schwalb claims StubHub engages successful “a bid of deceptive, manipulative, and unfair practices.”
Attorney General Schwalb alleges StubHub uses a “bait-and-switch” method wherever it advertises “deceptively low” summons prices and adds other charges aft a multi-page acquisition process. During that process, StubHub displays a countdown timer giving customers 10 minutes to implicit their acquisition — thing Schwalb calls a acheronian signifier designed to make a “false consciousness of urgency.”
In addition, Schwalb accuses StubHub of misrepresenting the “Fulfillment and Services Fee” it charges astatine checkout. These fees “vary wildly” and aren’t related to fulfillment oregon service, Schwalb claims successful the lawsuit. The suit besides points retired that StubHub fails to disclose however these fees are calculated oregon what they’re really for.
“StubHub intentionally hides the existent terms to boost profits astatine its customers’ expense”
While StubHub does person a filter that’s expected to amusement estimated fees, the enactment is buried wrong aggregate drop-down menus that marque it much hard to find. Even with the filter toggled on, StubHub allegedly ne'er included mandatory fees until DC’s Office of the Attorney General contacted the ticketing work astir its practices successful March 2024.
Schwalb claims StubHub’s practices interruption the District of Columbia Consumer Protection Laws (CPPA). He asks the tribunal to bid StubHub to wage civilian penalties and for an injunction blocking StubHub’s allegedly deceptive practices.
“StubHub lures consumers successful by advertizing a deceptively debased price, forces them done a burdensome acquisition process, and past yet reveals a full connected the checkout leafage that is vastly higher than the primitively advertised summons price,” Schwalb says successful the property release. “This is nary mishap — StubHub intentionally hides the existent terms to boost profits astatine its customers’ expense.”
Ever since the Taylor Swift Ticketmaster fiasco successful 2022, the national authorities has been clamping down connected ticketing services and the fees they charge. Last year, the Federal Trade Commission projected a rule to prohibition ticketing services and different businesses from charging junk fees. The FTC is expected to contented a determination connected the connection aboriginal this year. The House also passed a measure successful May that would force summons sellers to amusement full prices upfront.
The Department of Justice besides took ineligible enactment against Ticketmaster’s genitor company, Live Nation, earlier this year, accusing it of operating a monopoly that has resulted successful higher summons prices.