By Jennifer Chen | Posted on August 01, 2024 10:49 AM
The Attorney General in Washington, D.C. Sues StubHub, Accusing Them of Advertising Deceptively Low Prices and Then Ramping Up Prices With Extra Fees. But This Is Not The Case on Broadway.
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.
Ticket Sticker Shock
In many non-Broadway cases, StubHub's pricing strategies involve presenting low initial prices to attract buyers, who then experience sticker shock when the final price, inclusive of all fees, is revealed just before completing the purchase. This can create a sense of urgency and pressure to buy, as consumers might feel committed to the purchase after investing time and effort into selecting tickets. There is also a time-clock counting down that puts even more pressure on ticket buyers. These tactics have led to numerous complaints and a growing distrust among users of the platform.
Other Markets Lack Legislation
Despite these protections in New York, the broader issue of deceptive ticket pricing on platforms like StubHub remains a concern for events outside of Broadway. Dynamic pricing and hidden fees continue to affect consumers purchasing tickets for concerts, sports events, and other live performances in regions without similar regulatory safeguards. This inconsistency highlights the need for wider adoption of transparent pricing laws to protect consumers across all markets.
While StubHub has been criticized for misleading pricing practices, the sale of Broadway tickets in New York offers a notable exception due to the state's consumer protection laws. These regulations ensure that all fees are disclosed upfront, providing a level of transparency that is often lacking in other ticket sales. The success of these laws in New York suggests that similar measures could benefit consumers in other regions, fostering a more honest and straightforward ticket-buying experience.
