Stubhub Is Sued In Washington DC For Extra Ticket Fees - But Broadway Ticket Sales Remain Unaffected

Stubhub Faces Criticism For Alleged Deceptive Ticket Pricing Practices

StubHub, a prominent online ticket marketplace, faces criticism for its alleged deceptive pricing practices, which have left consumers feeling misled and frustrated. The attorney general for Washington, D.C., sued StubHub accusing the ticket resale platform of advertising deceptively low prices and then ramping up the final ticket prices with extra fees.

Although the practice of adding extra fees at the checkout screen on StubHub may be the case around the country for various concerts and sports events, Broadway ticket sales do not see the additional fees added at checkout, as it has been mandated that the fees must be added into the base price of the ticket following the New York State legislation enacted in 2022.

Non-Broadway Ticket Market

It is alleged that in the non-Broadway ticket market Stubhub often displays initial ticket prices that seem reasonable, only for buyers to discover significantly higher costs at checkout due to added service fees, delivery charges, and other surcharges. This practice, commonly referred to as "drip pricing," has been a major point of contention over the years and all ticket sellers have been guilty of the practice in the past, especially Ticketmaster, who has faced sweeping antitrust lawsuits against their bad practices.

However, when it comes to Broadway show tickets, the situation appears quite different due to the specific legal regulations in New York that aim to protect consumers from such practices and which Stubhub appears to be abiding by, as all ticket sellers now must meet the legal burdens instituted by the 2002 New York Law against the practice.

New York Law Against Deceptive Ticket and Pricing Practices
 

The New York law mandating full disclosure of ticket prices up front, including all fees, was enacted to combat deceptive pricing practices and improve transparency for consumers. Governor Kathy Hochul signed the legislation into law on June 30, 2022. This law, known as Senate Bill S9461, was introduced by Senator James Skoufis and passed by the New York legislature earlier in the same year.

The New York law, specifically designed to protect consumers from misleading pricing, has made a significant difference in how ticket sales are conducted for Broadway shows. It prohibits the last-minute addition of hidden fees, requiring that all charges be clearly displayed from the outset. This legislation also helps to foster a more transparent and fair marketplace, allowing theatergoers to compare prices accurately and make informed choices without fear of unexpected costs.

The legislation aims to ensure that ticket sellers use "all-in" pricing, meaning the total cost of a ticket, inclusive of all fees, must be disclosed upfront to consumers​.