Washington, DCs attorney general says the company violates consumer protection laws
of ConsumerAffairs
Concert and live event ticket sales platform StubHub faces a new lawsuit over its business practices. The attorney general of Washington, DC, has filed a complaint, claiming the company hides various fees connected to the purchase until right before checkout.
The suit maintains that these fees can increase the cost of a ticket by as much as 40%.
At issue is StubHubs use of so-called drip pricing. Thats a technique in which a seller shows a low price but adds on small feels throughout the purchase process. The suit, filed by Attorney General Brian Schwalb, claims the practice is in violations of Washington DCs Consumer Protection Procedures Act, which mandates truthful information about the cost of goods and services.
The lawsuit further claims the company does not provide ticket purchasers with accurate and easy-to-understand pricing information. It suggests that StubHubs use of a clock on the page, counting down the minutes the consumer has to complete the purchase, rushes the consumer into making the purchase.
StubHub denies the allegations contained in the complaint and said it is committed to operating a transparent shopping experience.
'Disappointed'
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."
StubHub acts as a middleman between people who want to sell their tickets to a concert or live event and those who want to buy them. The company, owned by eBay, was founded in 2000.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-08-01 11:54:55
