StubHub is accused of misleading customers about ticket prices in a new treatment filed by the attorney general of Washington, DC. The lawsuit, filed in the District of Columbia Superior Court, alleges that the secondary ticketing platform hides true costs by using “drip pricing”: a series of unnecessary steps in the checkout process where fees pile up without explanation until the transaction is completed— while a timer creates a sense of urgency. Fees defined as “fulfillment and service,” the lawsuit adds, are actually flexible markups, sometimes tied to supply and demand.
Brian Schwalb, the attorney general, wants a court order that would force Stubhub to streamline the checkout process and extract more than $100 million in hidden fees, plus damages. It says the practice violates DC consumer protection laws, deceiving customers and making it impossible to compare costs between platforms.
The lawsuit notes that, in 2014 and 2015, StubHub tried a more transparent “all-in” pricing model, but found it could maximize profits by keeping fees hidden. While StubHub offers a preview of ticket prices with all mandatory fees, it hides behind multiple drop-down menus that users are unlikely to explore, according to the lawsuit.
The move follows an extensive investigation into the business practices of Ticketmaster parent Live Nation, culminating in a lawsuit brought by the United States in May to break up Live Nation Entertainment.
from our partners at https://pitchfork.com/news/stubhub-sued-for-duping-customers-over-ticket-prices
