StubHub Slapped With Lawsuit Over Alleged Deceptive 'Drip Pricing' Of Tickets

In a recent development, StubHub is facing a lawsuit filed by the attorney general for Washington, D.C., accusing the company of misleading advertising and inflating ticket prices with hidden fees.

What Happened: The lawsuit alleges that StubHub has been engaging in a deceptive practice known as “drip pricing,” where the true cost of a ticket is concealed until the final stages of the purchasing process, AP News reported on Wednesday. This practice, according to Attorney General Brian Schwalb, violates consumer protection laws in Washington, D.C.

“StubHub intentionally hides the true price to boost profits at its customers' expense,” Schwalb stated.

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The lawsuit further claims that StubHub has sold nearly 5 million tickets in Washington since 2015, generating around $118 million in hidden fees. The suit seeks damages and an end to these pricing practices.

The lawsuit has been welcomed by Sally Greenberg, CEO of the nonprofit advocacy group National Consumers League. She stated, “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.”

Why It Matters: This lawsuit comes as a significant blow to StubHub, especially considering the growing discontent among consumers over hidden fees in the ticketing industry. For instance, fans of Taylor Swift had earlier expressed their frustration over high ticket fees and even created their exchange to circumvent such issues.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari