StubHub is sued over “drip pricing” as regulators crack down on sneaky fees

6-minute countdown… to snag Billy Joel tix. Yesterday, the Washington, DC, attorney general sued ticketing heavyweight StubHub over its pricing practices. FYI: StubHub is a third-party platform that lets fans buy and resell tickets to shows that may’ve sold out on primary platforms (like: Live Nation’s Ticketmaster). The lawsuit accuses StubHub of “drip pricing” — luring fans by displaying lower prices before hitting them with surprise fees at checkout. The complaint shows two tickets being advertised for $356 that end up costing nearly $500. The AG also said StubHub uses a checkout countdown clock to create “a false sense of urgency.”

• Performance hall: The suit alleges that StubHub has earned an estimated $118M in hidden fees from ticket sales in the DC area since 2015.

• Curtain call: The AG is asking regulators to punish StubHub financially and force it to stop its “deceptive” pricing strategy.

Eras Tour anger… Ticketing biggies have faced backlash from regulators and customers over extra fees. In May the DOJ filed an antitrust suit against Ticketmaster parent Live Nation, aiming to break up the country's largest concert promoter. It accused Ticketmaster of using its dominance to drive up prices with obscure fees. This week, Live Nation reported record Q2 revenue of $6B+ as the postpandemic concert boom continued. While event prices surge, consumers have been going into debt to go to shows and games.