StubHub Under Fire in DC Lawsuit for Allegedly ‘Deceptive’ Fee Practices

StubHub is facing a new lawsuit that accuses the ticketing service of hiding fees from customers until the very end of the purchasing process. In the lawsuit filed on Wednesday, District of Columbia Attorney General Brian L. Schwalb claims StubHub engages in “a series of deceptive, manipulative, and unfair practices.”

Attorney General Schwalb alleges StubHub uses a “bait-and-switch” technique where it advertises “deceptively low” ticket prices and adds extra charges after a multi-page purchase process. During that process, StubHub displays a countdown timer giving customers 10 minutes to complete their purchase — something Schwalb calls a dark pattern designed to create a “false sense of urgency.”

In addition, Schwalb accuses StubHub of misrepresenting the “Fulfillment and Services Fee” it charges at checkout. These fees “vary wildly” and aren’t related to fulfillment or service, Schwalb claims in the lawsuit. The lawsuit also points out that StubHub fails to disclose how these fees are calculated or what they’re actually for.

While StubHub does have a filter that’s supposed to show estimated fees, the option is buried within multiple drop-down menus that make it more difficult to find. Even with the filter toggled on, StubHub allegedly never included mandatory fees until DC’s Office of the Attorney General contacted the ticketing service about its practices in March 2024.

“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,” John Lawrence, StubHub’s deputy general counsel, says in a statement to The Verge. “We strongly support federal and state solutions that enhance existing laws to empower consumers, such as requiring all-in pricing uniformly across platforms.”

In the ongoing legal dispute, Schwalb asserts that StubHub's business practices infringe upon the District of Columbia's Consumer Protection Laws (CPPA). He argues that these practices are misleading and deceptive, potentially harming consumers who rely on StubHub for ticket purchases. Schwalb is seeking judicial intervention, specifically requesting that the court impose civil penalties on StubHub for its alleged violations. Additionally, he is asking the court to issue an injunction that would prohibit StubHub from continuing these purportedly deceptive practices, thereby protecting consumers from further harm and ensuring compliance with the CPPA. This case underscores the importance of upholding consumer rights and maintaining fair trading practices in the online marketplace.

“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,” Schwalb says in the press release. “This is no accident — StubHub intentionally hides the true price to boost profits at its customers’ expense.”

Ever since the Taylor Swift Ticketmaster fiasco in 2022, the federal government has been clamping down on ticketing services and the fees they charge. Last year, the Federal Trade Commission proposed a rule to ban ticketing services and other businesses from charging junk fees. The FTC is expected to issue a decision on the proposal later this year. The House also passed a bill in May that would force ticket sellers to show total prices upfront.

The Department of Justice also took legal action against Ticketmaster’s parent company, Live Nation, earlier this year, accusing it of operating a monopoly that has resulted in higher ticket prices.