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The D.C. attorney general is suing StubHub for deceiving customers through “a series of deceptive, manipulative, and unfair practices.” The lawsuit, filed Wednesday, claims the online ticket provider obscures ticket prices by showing customers an incomplete price initially, before making them go through a lengthy purchase process and adding extra fees. It comes amid heightened scrutiny of online ticket exchanges and similar platforms: The Justice Department in May sued Live Nation for antitrust violations, aiming to reduce ticket prices and fees by breaking up the company and Ticketmaster.
- In a record second-quarter, Live Nation reported continued demand for concerts, with revenue up 7% year-over-year at $6 billion.
- A post-pandemic "live events boom" has continued in recent months, with fans spending more at festivals and amphitheaters.
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Clayton Durant
Clayton Durant is an Influencer
Music Marketer, Artist Manager, & Adjunct Professor of Music Business
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2024.07.29 DC OAG StubHub Complaint - to finalize_Redacted (1).pdf oag.dc.govThe District of Columbia's Office of the Attorney General has filed a lawsuit against StubHub, alleging deceptive and unfair trade practices in violation of the Consumer Protection Procedures Act (CPPA).Here is a TL;DR breakdown of the lawsuit's key accusations:🎟 Drip Pricing & Hidden Fees: StubHub is accused of advertising low ticket prices while hiding mandatory fees, known as "drip pricing," which are only disclosed late in the buying process.🎟 Use of Dark Patterns: The lawsuit highlights StubHub's use of "dark patterns," which are digital tactics designed to trick consumers into making decisions they might not otherwise make. These include scarcity messages, countdown clocks, and multiple unnecessary steps in the purchase flow.🎟 Misleading Fulfillment and Service Fees: StubHub allegedly misrepresents the purpose of its "Fulfillment and Service Fees," which are not transparently explained to consumers. These fees can significantly inflate the final ticket price.🎟 Deceptive Estimated Fees Filter: Even with the "Include Estimated Fees" filter enabled, the lawsuit claims that StubHub fails to display all mandatory fees upfront, misleading consumers about the true cost.🎟 Bait-and-Switch Tactics: The lawsuit accuses StubHub of bait-and-switch tactics, where consumers are initially shown low prices but are later confronted with much higher costs due to undisclosed fees.🎟 Impact on DC Consumers: The lawsuit notes that StubHub's practices have disproportionately affected consumers in the District of Columbia, particularly those attending live events at the city’s numerous venues.🎟 False Sense of Urgency: StubHub uses countdown clocks and other urgency tactics to pressure consumers into completing purchases quickly, which can lead to less informed decision-making.🎟 Manipulation of Fee Calculations: The fees charged by StubHub are alleged to be inconsistent and influenced by factors unrelated to the services provided, such as ticket price and event demand.🎟 Historical Context of Deceptive Practices: The lawsuit points out that StubHub previously used a more transparent "All-in-Pricing" model but switched to the current model to increase profits, despite knowing it would mislead consumers.🎟 Call for Restitution and Penalties: The DC Attorney General is seeking a court order to permanently prohibit StubHub from continuing its deceptive practices, including the use of hidden fees and misleading pricing tactics. The lawsuit also demands that StubHub disgorge the approximately $118 million in hidden fees collected from District consumers since 2015. Additionally, the lawsuit seeks statutory civil penalties for each violation of the CPPA, along with the recovery of attorney’s fees and other associated costs.https://lnkd.in/dcCZ8z2j
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Russell Wallach
Global President at Live Nation
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Our biggest quarter ever! 39 million fans experienced the magic of live music, while 183 million fans are already planning their next adventure. Live music is unstoppable. Thanks to our incredible team and partners. Discover the 5 key drivers behind our success and how we plan to continue navigating the industry’s global growth. https://bit.ly/4fui8Nm
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Kevin Watterson commented on this
Jessica Golden
Sports Business/Senior Field Producer at CNBC
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Washington, D.C., attorney general sues StubHub, alleging deceptive pricing cnbc.comThe DC Attorney General announced today that they are suing StubHub for employing deceptive pricing practices to illegally increase profits.If you’ve purchased sports or concert tickets recently, you might have experienced this firsthand. You reach the final page of the transaction, only to find the price has surged significantly due to numerous added fees.For example, the complaint details a case where a pair of tickets was advertised at $178 each, totaling $356 for the pair. However, as the transaction proceeds, the checkout page reveals a total price approximately 40% higher, reaching $497 for the two tickets.https://lnkd.in/gTr7yNgt
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Like CommentKevin Watterson
Brand Marketing Manager, Paid Social Media at Uber
As someone who buys...a lot...of event tickets on the secondary market, what bothers me about StubHub's structure is the "estimated fees" are rarely accurate. It's almost a guarantee that an MLB ticket will be $5 more than it displays.
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Kimberly Koch commented on this
Jessica Golden
Sports Business/Senior Field Producer at CNBC
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Washington, D.C., attorney general sues StubHub, alleging deceptive pricing cnbc.comThe DC Attorney General announced today that they are suing StubHub for employing deceptive pricing practices to illegally increase profits.If you’ve purchased sports or concert tickets recently, you might have experienced this firsthand. You reach the final page of the transaction, only to find the price has surged significantly due to numerous added fees.For example, the complaint details a case where a pair of tickets was advertised at $178 each, totaling $356 for the pair. However, as the transaction proceeds, the checkout page reveals a total price approximately 40% higher, reaching $497 for the two tickets.https://lnkd.in/gTr7yNgt
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Like CommentKimberly Koch
Product Strategy & Management Leader | Customer Advocate | Digital Consultant, Financial Services (Retail Banking, Insurance, Wealth Management)
I quit using StubHub when they backtracked on "all-in pricing". I tired of repeatedly abandoning tickets in my cart, and starting my search over to find ones at my price point. Suddenly, buying directly from MLB was much more straightforward. (Now that's saying something, right?) I knew it was a pilot -- a friend worked at the company at the time. I was disappointed when they chose to go back to what felt like bait-and-switch.
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Michael M. commented on this
Jessica Golden
Sports Business/Senior Field Producer at CNBC
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Washington, D.C., attorney general sues StubHub, alleging deceptive pricing cnbc.comThe DC Attorney General announced today that they are suing StubHub for employing deceptive pricing practices to illegally increase profits.If you’ve purchased sports or concert tickets recently, you might have experienced this firsthand. You reach the final page of the transaction, only to find the price has surged significantly due to numerous added fees.For example, the complaint details a case where a pair of tickets was advertised at $178 each, totaling $356 for the pair. However, as the transaction proceeds, the checkout page reveals a total price approximately 40% higher, reaching $497 for the two tickets.https://lnkd.in/gTr7yNgt
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Like CommentMichael M.
Project Manager
Fees have definitely become the prime tool of scoundrel business practices. Ticketing is the most egregious, but it's increasingly common elsewhere. If the fee is inseparable from the service, it's not a fee and should be in the base price.
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Lucas Shaw
Professional Party Pooper
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StubHub ‘Drip Pricing’ Hides Cost of Tickets, DC Prosecutor Says bloomberg.comDC's attorney general is suing StubHub Inc., accusing it of hiding the full price of tickets from consumers until the last minute.Hidden fees have become one of the biggest complaints about the live music business, especially as ticket prices have soared. While ticket sellers don't control the pricing of tickets, they do have a say over fees.StubHub says its practices are in line with its competitors.https://lnkd.in/g7zq9R99
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Jessica Golden
Sports Business/Senior Field Producer at CNBC
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Washington, D.C., attorney general sues StubHub, alleging deceptive pricing cnbc.comThe DC Attorney General announced today that they are suing StubHub for employing deceptive pricing practices to illegally increase profits.If you’ve purchased sports or concert tickets recently, you might have experienced this firsthand. You reach the final page of the transaction, only to find the price has surged significantly due to numerous added fees.For example, the complaint details a case where a pair of tickets was advertised at $178 each, totaling $356 for the pair. However, as the transaction proceeds, the checkout page reveals a total price approximately 40% higher, reaching $497 for the two tickets.https://lnkd.in/gTr7yNgt
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Bradley Kellmayer
Founder/CEO "Chief Entrepreneur Officer"
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Washington, D.C., attorney general sues StubHub, alleging deceptive pricing ssnews.page.linkInteresting read with your morning coffee ☕ With the high profile attack on "hidden and junk" fees, another look must be taken on the lack of enforcement to control bots that purchase tickets. StubHub and other ticketing agencies generate millions in fees for ticket purchases. When the ticket brokers list the tickets for resale, StubHub and others collect fees again on the resale. In theory, a $100 ticket to an event and then resold could generate 50% in fee revenue on the sale and resale of a songle ticket. So, why would any ticketing platform prohibit broker purchases as well as use of bots... thoughts?#ticketing #ticketingplatforms #stubhub #ticketmaster #axs
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