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StubHub is hit with a lawsuit for overcharging customers with systematic ‘junk fees.’
Customers are suing StubHub for the alleged systematic overcharging for Beyonce concerts and other popular shows by consistently underestimating fees, contributing to the overall “junk fee” epidemic. The lawsuit, filed by Lisa Alcarez and Brian Hong in US District Court, Northern District of California, sites several “experiments” enacted by the plaintiffs that reveal fees incorrectly calculated “like clockwork.”
“StubHub is not estimating anything — it is misrepresenting the price it claims it can cause tickets to be delivered to customers by a consistent amount,” reads the lawsuit. “Worse yet, this bait and switch is made even more deceptive by the fact that the price increases only at the final checkout screen.”
Alcarez and Hong say they tried to purchase tickets for a Beyonce concert at $512 each, which StubHub said included fees. But after getting through nine pages and pop-ups, the price ultimately increased to $515 a piece. According to Bloomberg, Hong and Alcarez showed that StubHub consistently underestimates fees for tickets over $20 in price by $3 per ticket, and by $2-3 for “lower-priced” tickets.
The lawsuit also points out how that the FTC is “not the only governing body that is concerned by organizations nickel and diming consumers through manipulative practices. The US Senate Committee on Commerce, Science, and Transportation recognizes the need for more action to protect consumers from ‘junk fees’” — that is, fees tacked onto the price of a product or service after a price has already been advertised to a consumer.
If passed, the TICKET Act, a bipartisan piece of legislation approved by the Senate Committee to be considered by the full Senate, will require event ticket sellers to display the total ticket price upfront — including all fees — in any advertising that lists a price. Further, the lawsuit points out President Biden’s opposition to such ‘junk fees,’ including online concerts and sporting events.
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