[co-author: Stephanie Kozol]*
On July 29, the attorney general (AG) for Washington, D.C. sued StubHub, Inc. (StubHub) for violations of the district’s Consumer Protection Procedures Act. The complaint accuses StubHub of employing “dark patterns,” including the use of hidden fees that mislead consumers and inflate ticket prices.
Specifically, the district AG accuses StubHub of using a “drip pricing” scheme, where the initial ticket prices displayed on its website and mobile app do not include mandatory fees. This practice allegedly forces consumers to either pay the unexpected fees or abandon their purchase. The lawsuit further alleges that StubHub misrepresents the nature and purpose of its fees. According to the AG, the company labels these charges as “fulfillment and service fees,” but they are influenced by factors unrelated to fulfillment or service, such as ticket price and supply and demand.
The AG also takes issue with StubHub’s interface. The complaint accuses the company of employing manipulative design tactics, including a countdown clock that pressures consumers to complete their purchase quickly. Additionally, while StubHub has an “include estimated fees” filter, it is allegedly too difficult to find and did not include all fees when it was first enabled.
The AG is seeking injunctive relief, restitution, civil penalties, and other remedies to address these alleged violations.
Why It Matters
Drip pricing has been one of the most significant regulatory focuses and was even mentioned by President Biden in his last two State of the Union addresses. There have been increased efforts at both the federal and state level to pass laws addressing the issue, including a new proposed rule by the Federal Trade Commission. However, this lawsuit by the district AG serves as a reminder that regulators do not have to rely on specific junk fee or drip pricing statutes. Rather, traditional statutes regulating unfair and deceptive practices may provide AGs with the requisite authority to address deceptive pricing violations.
*Senior Government Relations Manager
