The “true price” of the ticket is obscured in a way that deceives customers and prevents comparison-shopping, D.C. Attorney General Brian L. Schwalb (D) said in a statement.
“This is no accident — StubHub intentionally hides the true price to boost profits at its customers’ expense,” Schwalb said in a statement Wednesday.
StubHub on Wednesday rejected Schwalb’s assertions.
“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,” the company said in a statement. “We strongly support federal and state solutions that enhance existing laws to empower consumers, such as requiring all-in pricing uniformly across platforms.”
The lawsuit ramps up scrutiny of a prominent ticket-seller in a city where live events generate considerable revenue for venues and ticket promoters.
Schwalb is seeking an injunction along with unspecified civil penalties and a return of the money it gained through the allegedly unlawful practices. He estimates that StubHub has sold nearly 5 million tickets in D.C., getting an estimated $118 million from extra fees since 2015.
StubHub has faced legal scrutiny of its fees before. A class-action lawsuit filed 2019 in San Francisco also alleged a bait-and-switch in the way fees are displayed. StubHub denied the allegations but settled the litigation.
The concept of “drip pricing” — a term Schwalb’s office used to describe StubHub’s practices — has come up in other D.C. lawsuits.
In 2019 then-Attorney General Karl A. Racine sued Marriott for allegedly hiding the true price of hotel rooms by adding “resort fees” or “amenity fees” after a room is booked, ultimately charging the customer more than what was advertised. The lawsuit is ongoing.
In July, the Washington Nationals were sued by the National Consumers League, a nonprofit advocacy group, over per-ticket fees that the group said weren’t described up front.
Schwalb said the lawsuit is part of his office’s efforts to rid D.C.’s live entertainment scene of deceptive practices.
“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,” Schwalb said.