StubHub under fire for pricing scheme

  • 2 months ago
TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and why StubHub is in hot water

Category

🥇
Sports
Transcript
00:00I'm Conway Gittins reporting from the New York Stock Exchange.
00:03Here's what we're watching on the street today.
00:05Investor sentiment is on the upswing after strong meta results.
00:08Better-than-expected sales and profits soothed recent concerns about the AI revolution.
00:13Wall Street will be looking for confirmation from Amazon and Apple after the closing bell.
00:18Meanwhile, weekly jobless claims surged to their highest in 11 months,
00:22putting renewed focus on the job market ahead of Friday's key employment report.
00:28Turning to other headlines, StubHub is being sued by the Attorney General of Washington, D.C.
00:33for allegedly using a, quote, classic bait-and-switch scheme
00:38where customers are tricked into paying higher fees for tickets.
00:41Washington, D.C. Attorney General Brian Schwab said in a statement, quote,
00:45StubHub lures consumers by advertising a deceptively low price,
00:49forces them through a burdensome purchase process,
00:52and then finally reveals a total on the checkout page
00:55that is vastly higher than the original advertised price.
00:58This is no accident.
01:00The lawsuit lays out a claim that StubHub creates a, quote,
01:03false sense of urgency by using a countdown clock,
01:07which then creates the idea that consumers have to buy right away or miss out on their tickets.
01:12StubHub switched to this business model in 2015.
01:15Since then, according to the lawsuit,
01:17it has sold roughly five million tickets in Washington, D.C. alone,
01:21resulting in $118 million in, quote, hidden fee revenue.
01:26The company says it is disappointed in the lawsuit
01:29and urged new laws that require, quote, all-in pricing uniformly across platforms.
01:35That will do it for your daily briefing from the New York Stock Exchange.
01:38I'm Conway Gittins with The Street.

Recommended

0:33
I
Up next
ABC’s Tracker: Big Brother Lends a Helping Hand
FanReviews
0:36
U.S. Crude Oil Prices Slip Below $71 on Middle East Tensions Easing
Benzinga
1:55
Aldi announces Thanksgiving meal deal to fight inflation
The Street
0:38
Wells Fargo CEO Says US Consumer 'Extremely Resilient,' Sees Consumer Spending Rising Steadily
Benzinga
0:46
Harris Proposes Medicare Funding for At-Home Care As Costs Outpace Inflation, Weighing On Families
Benzinga
1:54
Boeing to borrow $10 billion and raise an additional $25 billion
The Street
1:57
Credit Card debt is a growing concern
The Street
1:24
Insights from Ian Bohen: Ryan’s Sacrifices on Yellowstone
FanReviews
1:16
Top tips for how to save for a big purchase
The Street
2:01
Bed Bath & Beyond is coming back to brick and mortar stores
The Street
2:32
What needs to happen for homes to become more affordable
The Street
1:39
Inside Look at Reba McEntire's New SeriesHappy's Place
FanReviews
1:50
NFL ordered to pay billions in 'Sunday Ticket' case
The Street
1:48
NFL faces class-action lawsuit over Sunday Ticket package
The Street
1:50
Spotify raises prices for second time in less than a year
The Street
1:48
You can now subscribe to Disney+, Hulu, and Max in one bundle
The Street
2:02
Disney to raise prices of streaming services
The Street
1:53
7-Eleven to close 444 stores
The Street
1:55
Streaming prices continue to rise
The Street
1:57
Heating your home will cost more this year
The Street
1:53
Grocery prices finally start to come down
The Street
1:52
Netflix ditches cheapest ad-free tier
The Street
1:47
All-sports streaming platform blocked by judge
The Street
1:49
GameStop stock soars again as Roaring Kitty reveals holdings
The Street
1:38
Foot Locker surges as sneaker heads prepare to pay full price
The Street