StubHub Is Being Sued For Hiding Junk Fees By The Washington, DC Attorney General

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Ticket reselling platform StubHub is being sued by the Attorney General of Washington, DC for allegedly using hidden fees and deceptive pricing to increase its profits. According to Variety, Brian L. Schwalb, the AG of DC, filed the lawsuit today, claiming StubHub has been using “drip pricing” to generate over $115 million since 2015 — and that’s just in DC.

According to Variety, drip pricing is “the practice of advertising low prices that become inevitably inflated by hidden fees at the purchase point.” These “fulfillment and service” fees are never really explained, and even worse, StubHub uses a site timer to increase pressure on customers so they never have time to review these fees. If you’ve used the site, you’re likely familiar; a 10-minute timer appears when you search for tickets, giving a sense of urgency. “Hurry up and buy before someone else claims these,” it seems to imply, rushing customers through a series of unnecessary filler pages, adding extra steps that seemingly justify all those additional fees once it’s time to enter your credit card information.

The timer also prevents customers from shopping around at other sites and comparing prices, leading to paying way more as a result of added fees and no other options. The DC AG’s office says StubHub actually tested all-in pricing and drip pricing, comparing the results, and learning customers were more likely to buy the higher priced tickets if the fees were hidden until the end of the purchase, rather than included in the upfront pricing.

The lawsuit states, “For years, StubHub has illegally deceived District consumers through its convoluted junk fee scheme. 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 isn’t the only ticketing platform to receive official scrutiny this year; in May, the US Justice Department sued Live Nation and Ticketmaster for monopolistic business practices, just about a year after Ticketmaster updated its own policy to show full prices upfront. “Junk fees” have been a point of emphasis of the current Presidential administration, a trend that can be expected to continue if Vice President Kamala Harris is elected this November.

Joe Biden Renews Promise To End Junk Fees, IRS Vows To Crack Down On Ticket Resellers

The IRS has announced plans to crack down on the lucrative ticket resale industry. New reports indicate that the IRS will be more stringently tracking and taxing ticket resellers who make more than $600 from resale each year. Furthermore, sites such as Ticketmaster and StubHub will be required to provide the agency with information about resellers who use their site.

The move comes amid a renewal of President Joe Biden’s goal of ending junk fees. The removal of junk fees has been something the President has long targeted with the end goal of increasing financial transparency for American shoppers. “Concert tickets are hard enough to get, you shouldn’t have to pay surprise service fees on top of that. My Administration is working to crack down on those junk fees, so you know what you are paying for upfront,” @POTUS tweeted on September 23. The issue became national news earlier this year in regard to the sale of Taylor Swift for her Eras Tour.

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Biden Slammed In Latest Polls

However, President Biden is not the most popular man right now. A recent bipartisan NBC poll showed that Americans overwhelmingly disapprove of how Biden has handled the economy. Furthermore, 56% of the 1000 people asked disapprove of Biden’s presidency. However, 44% of voters said they felt “very negatively” about Donald Trump, with 54% in total saying they felt negatively about Trump in some fashion. The poll was a bipartisan effort conducted by Republican pollster Bill McInturff and Democrat pollster Jeff Horwitt.

“This survey is a startling flashing red light for an incumbent party,” McInturff said. “Yes, the numbers for Biden aren’t where he needs them to be. But the lens for most voters is still through Donald Trump first,” Horwitt countered. The biggest issues for the two presumptive candidates were age and criminality. 74% of respondents said they had concerns about Biden’s age and health. Meanwhile, 62% said they were concerned about Trump’s ongoing legal troubles. As a result, the head-to-head race sees the pair tied in a hypothetical election with 46% of the vote each.

Read More: Donald Trump Targets Howard Stern In Latest Rant

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