DC sues StubHub claiming inflated ticket prices, deceptive fees

WASHINGTON - The attorney general for the District of Columbia filed a lawsuit against ticket resale platform StubHub on Wednesday, alleging that the company promotes artificially low prices that it subsequently increases through additional fees.

Attorney General Brian Schwalb said the practice known as drip pricing is unfair, deceptive, and violates the District’s consumer protection laws. Schwalb says it interferes with the ability of ticket buyers to compare prices and make other informed decisions about their purchases.

D.C. is significantly affected by StubHub’s illegal practices, Schwalb said, because residents and visitors in the District spend more per capita on live entertainment than many other major US cities. Schwalb said since implementing the drip pricing model in 2015, StubHub has sold nearly five million tickets to District consumers, resulting in approximately $118 million in hidden fees. He said his office is pursuing restitution for affected consumers, along with financial penalties.

"For years, StubHub has illegally deceived District consumers through its convoluted junk fee scheme," Schwalb said in a statement released Wednesday. "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."

StubHub released this official statement:

"StubHub is committed to creating a transparent, secure, and competitive marketplace to benefit consumers. We are disappointed that the DC Attorney General is targeting StubHub when our user experience is consistent with the law, our competitors’ practices, and the broader e-commerce sector. We strongly support federal and state solutions that enhance existing laws to empower consumers, such as requiring all-in pricing uniformly across platforms."

The full complaint is available here.

Here's an explanation of Drip Pricing according to the attorney general for the District of Columbia:

What is Drip Pricing? (DC OAG)

StubHub uses drip pricing to attract ticket buyers. They advertise a low initial price, but as customers progress through the checkout process, additional fees (such as "fulfillment and service" fees) are added. These fees are often cryptic and not adequately explained.

How Does Drip Pricing Work?  (DC OAG)

Customers face a lengthy checkout process with numerous pages. By the end, the total price can be substantially higher than the advertised amount. A countdown clock creates urgency, pressuring consumers to complete the purchase.

Comparison Challenges: (DC OAG)

Drip pricing makes it difficult for consumers to compare StubHub’s prices with other platforms, as they only discover the full fee near the end of the process. StubHub intentionally hides the true price to boost profits.

Previous Model: (DC OAG)

From 2014-2015, StubHub used All-In Pricing, where advertised prices included mandatory fees. However, testing showed that hidden fees led to higher ticket purchases, prompting the adoption of Drip Pricing.