StubHub tricks consumers into overpaying for tickets, prosecutors allege
CBSN
Online events platform StubHub is using predatory sales tactics to illegally mislead consumers into shelling out more for tickets, prosecutors allege in new lawsuit.
Washington, D.C., Attorney General Brian L. Schwalb claimed in a complaint that StubHub is tricking consumers by hiding mandatory fees until just before shoppers make a purchase. These fees can boost the total cost of a ticket by 40%, the lawsuit alleges.
StubHub's use of so-called drip pricing — or when a company dangles an initial low price but later tacks on fees — can deceive consumers into paying more than they expected, the suit alleges. The strategy violates the District of Columbia's Consumer Protection Procedures Act, a law that requires merchants to provide truthful information about consumer goods sold in the city, the suit claims.
