The Chicago White Sox are in a franchise-record 17-game losing streak, after another loss Wednesday afternoon. Aptly, ticket prices to Wednesday's game against the Kansas City Royals were priced on ticket reseller StubHub at a meager $6.
But at checkout, the total jumped to $14 — more than double the original price, when you add in fees.
How these fees are charged is at the core of a lawsuit filed Wednesday by Washington D.C. attorney general Brian Schwalb. In a statement, he claims StubHub's practice of hiding mandatory fees until the end of the purchase process is "deceptive and unfair."
In his statement, Schwalb said, "StubHub lures consumers in by advertising a deceptively low price, forces them through a burdensome purchase process, and then finally reveals a total on the checkout page that is vastly higher than the originally advertised ticket price."
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"This is no accident — StubHub intentionally hides the true price to boost profits at its customers' expense."
Schwalb said StubHub uses a system called "drip pricing," in which a company advertises low prices to entice customers, "then prompts them through a series of needless steps while a countdown clock creates a false sense of urgency."
Schwalb claims fees are tacked on without adequate explanation.
Melanie McGovern, with the Better Business Bureau, told Scripps News she couldn't comment on the new lawsuit. But she said before you purchase from a reseller, make sure you understand what each fee covers.
"Reputable businesses will answer those questions," McGovern said. "They'll tell you exactly what each fee is for. If you can't get anybody on the phone, always check other sellers as well before you commit to buying from one."
According to the BBB, you can protect yourself from hidden fees by:
- Questioning the promoted price
- Budgeting for fees
- Comparison shopping with fees in mind
"We all know the extra fees are going to be there," McGovern said. "When you are budgeting for tickets, make sure you're budgeting that extra bit of money. There's no way to avoid it in some cases."
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In a statement to Scripps News, StubHub said, "StubHub is committed to creating a transparent, secure, and competitive marketplace to benefit consumers. We are disappointed that the D.C. Attorney General is targeting StubHub when our user experience is consistent with the law, our competitors' practices, and the broader e-commerce sector."
The statement adds that StubHub is in support of federal and state solutions "that enhance existing laws to empower consumers, such as requiring all-in pricing uniformly across platforms."
