DC Sues StubHub Over Pricing Issues

A lawsuit filed by Washington, DC Attorney General Brian Schwalb accuses StubHub of employing misleading pricing tactics that obscure the true cost of tickets until the final purchase stage. The lawsuit claims that these practices, described as a “bait-and-switch” scheme, utilize a method known as “drip pricing,” where only a portion of the ticket price is initially displayed. This strategy allegedly pressures consumers into making hasty purchases through a countdown clock that creates a false sense of urgency. Since adopting this pricing model in 2015, StubHub has reportedly sold nearly 5 million tickets to consumers in Washington, DC, generating approximately $118 million in hidden fees. Schwalb criticized the company for luring customers with deceptively low prices, only to reveal significantly higher totals at checkout. He emphasized that this practice is intentional, aimed at increasing profits at the expense of consumers. In response to the allegations, StubHub’s deputy general counsel, John Lawrence, defended the company, asserting its commitment to a transparent and competitive marketplace. He expressed disappointment over the lawsuit, arguing that StubHub's practices align with legal standards and those of its competitors in the e-commerce sector. Lawrence also highlighted the company’s support for enhanced consumer protection laws, advocating for uniform all-in pricing across platforms. The lawsuit notes that StubHub previously utilized an all-in pricing model from 2014 to 2015, which included mandatory fees in the advertised prices. However, the company reportedly abandoned this approach after finding that customers were more likely to complete purchases when fees were disclosed only at the end of the transaction.