Attorney General Brian L. Schwalb today filed a lawsuit against StubHub, Inc. (StubHub), an online ticket exchange and resale platform, to put an end to StubHub’s deceptive and unfair practice of hiding mandatory fees from consumers until the end of a lengthy purchase process, and then failing to provide clear and accurate information about the purpose of those fees or how the fees are calculated. These deceptive and unfair practices interfere with consumers’ ability to compare prices and to otherwise make informed decisions about their ticket purchases, in violation of the District’s consumer protection laws.

“For years, StubHub has illegally deceived District consumers through its convoluted junk fee scheme,” said Attorney General Schwalb. “StubHub lures consumers in by advertising a deceptively low price, forces them through a burdensome purchase process, and then finally reveals a total on the checkout page that is vastly higher than the originally advertised ticket price. This is no accident—StubHub intentionally hides the true price to boost profits at its customers’ expense. The District is home to one of the nation’s largest and most vibrant live entertainment scenes, and StubHub’s predatory tactics disproportionately harm District residents. That is why today we’re suing to end StubHub’s exploitative pricing scheme.”

“Hidden fees in the ticketing industry have truly gotten out of control. The price that is advertised is the price that we should pay—full stop,” said National Consumers League CEO Sally Greenberg. “The District of Columbia is one of the best jurisdictions in the nation when it comes to fighting for consumers. We’re grateful for Attorney General Schwalb’s leadership in this space and look forward to continuing to support his work on behalf of the public.”

StubHub utilizes a system called “drip pricing,” in which the company advertises an artificially low price to entice ticket buyers, then prompts them through a series of needless steps while a countdown clock creates a false sense of urgency. By the time customers have made it past StubHub’s numerous pages—often over a dozen—to the end of the lengthy checkout process, they are often charged a final price substantially higher than the advertised price due to cryptic “fulfillment and service” fees tacked on without adequate explanation of the fees’ purpose. 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. Drip pricing also makes it nearly impossible for consumers to comparison shop between StubHub and other platforms, since they don’t know what the fee will amount to until they near the end of the checkout process. StubHub designed the drip pricing scheme specifically to increase profits at the expense of consumers. From 2014-2015, StubHub utilized “all-in pricing,” in which advertised prices included mandatory fees. After a testing period that randomly assigned consumers to one of the two pricing models demonstrated that consumers are more likely to purchase tickets—and purchase them at higher prices—if fees are hidden until the end, StubHub implemented its deceptive drip pricing model.

The District of Columbia is particularly impacted by StubHub’s illegal conduct, as residents and visitors spend more per capita on live entertainment in Washington, DC than those in many other major US cities, including New York City, Los Angeles, Chicago, Boston, Miami, Nashville, and Austin. Since adopting the drip pricing model in 2015, StubHub has sold nearly 5 million tickets to District consumers, extracting an estimated $118 million in hidden fees.

With this lawsuit, OAG seeks to correct StubHub’s deceptive and misleading practices and obtain restitution for harmed District consumers and financial penalties.

The full complaint is available here.

This matter is being led by Laura Beckerman, Senior Trial Counsel, under the supervision of Adam Teitelbaum, Director of the Office of Consumer Protection.
 

How to Report Unfair Business Practices

OAG protects DC residents from fraud, exploitation, and deceptive business practices by investigating and mediating consumer complaints, educating residents about their rights, and taking legal action against businesses and individuals that harm residents and break the law. Since January 2023, OAG has obtained nearly $50 million through enforcement actions and settlements on behalf of DC consumers. 

To report scams, fraud, or unfair business practices, contact OAG’s Consumer Protection Division:

• Call the hotline at (202) 442-9828
• Send a complaint via email to consumer.protection@dc.gov
• Submit a complaint online at: https://oag.dc.gov/consumer-protection/submit-consumer-complaint