(Bloomberg) -- The attorney general for the District of Columbia accused StubHub Inc. of using strategies to hide the full price of tickets from consumers until the last minute, when they’re hit with added fees.
The online ticket seller uses a “drip pricing” model that teases a lower cost which then climbs due to fees at the end of the purchase, Attorney General Brian Schwalb said in a press release that was reviewed by Bloomberg. Schwalb said he was filing a lawsuit against the company on Wednesday for deceptive pricing and “junk fees.”
StubHub said its practices were in line with its competitors in an emailed statement to Bloomberg News.
“We are disappointed that the DC Attorney General is targeting StubHub when our user experience is consistent with the law, our competitors’ practices, and the broader ecommerce sector,” a spokesperson said, adding that the company was committed to creating a transparent and secure platform. “We strongly support federal and state solutions that enhance existing laws to empower consumers, such as requiring all-in pricing uniformly across platforms.”
StubHub postponed the planned launch of its US initial public offering earlier this month, citing unfavorable market conditions.
The company’s ticket reselling operations, which include the site Viagogo, span more than 90 countries, according to its website.
--With assistance from Amy Thomson.
(Updates with StubHub response from third paragraph)
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