StubHub is being sued by the attorney general of Washington, D.C., for allegedly engaging in deceptive pricing practices.

• StubHub is accused of using misleading pricing tactics to increase profits illegally, claims Washington, D.C.'s Attorney General Brian Schwalb.
• Since 2015, StubHub has allegedly extracted $118 million in hidden fees from consumers in the district, with over 5.5 million tickets sold.
• The lawsuit emerges amidst criticism from consumers and lawmakers towards ticket platforms for charging extra or "unnecessary" fees.

On Wednesday, StubHub was sued by Washington, D.C.'s Attorney General Brian Schwalb for allegedly engaging in deceptive and unfair pricing practices.

StubHub is accused of misleading customers with low ticket price ads, only to charge them significantly more during the checkout process.

StubHub intentionally conceals the true price to increase profits at the expense of its customers, as stated by Schwalb.

The ticketing platform, worth more than $16 billion, had planned to launch an initial public offering in the summer. However, the company recently postponed the IPO until after Labor Day due to challenging market conditions.

StubHub's ticketing platform utilizes a "drip pricing" system that creates a false sense of urgency through a countdown clock, according to the AG's lawsuit. Additionally, the complaint alleges that StubHub charges substantially higher "fulfillment and services fees" without providing an adequate explanation.

The lawsuit against ticket sellers is a result of criticism from both consumers and lawmakers regarding the hidden or "junk" fees they charge. Similarly, airlines have also faced accusations of deceptive pricing.

The attorney general's office claimed in its lawsuit that StubHub used "all-in pricing" from 2014 to 2015, where the advertised price included mandatory fees. The complaint alleged that StubHub conducted a testing period where it randomly assigned consumers to one of two pricing models. The company discovered that if they concealed fees until the end of the checkout, consumers were more likely to purchase tickets at the higher prices, according to the lawsuit.

The District of Columbia is significantly affected by StubHub's illegal actions, as its residents and visitors spend more on live entertainment in Washington, D.C., compared to many other cities in the U.S., according to the AG's office.

The advertised price for the tickets is $178 per ticket, or $356 for a pair. However, when the clock ticks down, the checkout page displays a total price that is 40% higher, at $497 for the two tickets.

The complaint stated that StubHub does not clarify to consumers how the fees for a specific ticket purchase are determined during the entire purchasing process.

The AG's office stated that since 2015, StubHub has sold over 5.5 million tickets to consumers in the district, generating an estimated $118 million in hidden fees.

In January, the company was sued in a federal class action lawsuit for allegedly deceiving customers about ticket prices.

Since its launch in 2000, StubHub has been a leading player in the ticketing industry.

In 2020, Eric Baker and his company Viagogo bought back the ticket seller from eBay in a $4 billion deal.