Collins Interviewed by Scripps News Regarding the StubHub Consumer Lawsuit
Media Commentary
August 2024
Shawn Collins was interviewed by Scripps News regarding a lawsuit brought by the DC Attorney General in which StubHub is accused of deceiving customers over ticket prices. The lawsuit alleges that the secondary ticket platform conceals true costs using “drip pricing”: a series of unnecessary steps in the checkout process, where fees accumulate without explanation until the transaction has been completed—all while a timer creates a sense of urgency.
Collins explains that similar lawsuits were common in the past, particularly in the telecom industry, and that if StubHub is required to change its practices, it would mean restructuring their algorithms and passing on the expenses to consumers, ultimately leading to higher ticket prices.
Collins also discusses the challenge companies face trying to balance operations with government regulations, noting that ensuring clear and conspicuous communication with consumers is essential. Finally, Collins mentions the countdown timer element of the lawsuit and that consumers might perceive it as putting pressure on them. However, he does not think this part of the lawsuit will have legs because it is still an unsettled area of the law.