Business

StubHub, Sued in Washington, D.C For Deceptive Pricing

Published

6 months ago

July 31, 2024

Brian Schwalb the Attorney General of Washington, D.C. has sued the online ticket exchange platform StubHub on Wednesday, alleging deceptive and unfair pricing.

The lawsuit claims StubHub uses deceptive advertising of low ticket prices to lure consumers who pay vastly more after an arduous checkout process.

“This is no accident StubHub intentionally hides the true price to boost profits at its customers’ expense,” Schwalb said in a statement.

The ticketing platform, valued at over $16 billion, had been eyeing a summer initial public offering (IPO). However, earlier this month, the company announced it would delay the IPO until after Labour Day, citing difficult market conditions.

The AG’s lawsuit said the ticketing platform uses a system called “drip pricing,” which employs a countdown clock to create a false sense of urgency. The complaint argued that StubHub tacks on substantially higher “fulfilment and services fees” without an adequate explanation.

The lawsuit comes as consumers and lawmakers alike criticize the hidden or “junk” fees charged by ticket sellers. Other businesses like airlines have also faced allegations of deceptive pricing.

In its lawsuit, the attorney general’s office said that from 2014 to 2015, StubHub used “all-in pricing,” in which the advertised price included mandatory fees. The complaint alleged that StubHub did a testing period where it randomly assigned consumers to one of the two models. The company found that if it hid fees until the end of the checkout, consumers were more likely to buy tickets and purchase them at the higher prices, the lawsuit said.

“The District of Columbia is particularly impacted by StubHub’s illegal conduct, as residents and visitors spend more per capita on live entertainment in Washington, D.C., than those in many other U.S. cities,” the AG’s office said.

In one example, the complaint shows a pair of tickets with an advertised price of $178 per ticket, or $356 for a pair. As the clock ticks down, the checkout page shows the total price about 40% higher, at $497 for the two tickets.

“StubHub never explains to consumers throughout the purchase process how the fees for a particular ticket purchase are calculated,” the complaint said.

Since 2015, StubHub has sold over 5.5 million tickets to consumers in the district, extracting an estimated $118 million in hidden fees, the AG’s office said.

The company also faced a federal class action lawsuit in January for allegations that it deliberately misled customers on ticket prices.

StubHub has been one of the top players in the ticketing industry since it launched in 2000.

Co-founder Eric Baker and his company Viagogo reacquired the ticket seller from eBay in 2020 in a $4 billion deal.

Business

FCMB, Proparco Partner to Boost Women-Led Businesses, Agriculture

Published

18 hours ago

January 23, 2025

Samson Adeyanju

By Our Correspondent

First City Monument Bank (FCMB), and Proparco have strengthened their partnership with a $35 million senior credit line and two guarantees—ARIZ (€3 million) and EURIZ (€6 million)—signed on January 20, 2025.

The deal, facilitated under the European Union’s EFSD programme, aims to empower small and medium enterprises (SMEs), with a focus on agriculture (90%) and women-led businesses (10%).

This initiative enhances FCMB’s role as a leading SME bank in Nigeria and aligns with global development goals, such as SDG 2 (Zero Hunger) and SDG 8 (Decent Work and Economic Growth). The funding will support high-impact sectors, including agriculture and renewable energy, fostering job creation and economic progress.

Proparco Deputy CEO Djalal Khimdjee emphasized the partnership’s impact: “This collaboration enables the growth of SMEs, advances gender equality, and strengthens food security in Nigeria, building a sustainable and resilient economy.”

Since 2014, Proparco has supported FCMB in advancing Nigeria’s economic development. This latest collaboration reaffirms both institutions’ commitment to inclusive growth and sustainable economic transformation.

Business

Cardoso Vows to End Buying, Selling of Naira Notes

Published

2 days ago

January 22, 2025

Samson Adeyanju

By Our Correspondent

Governor of the Central Bank of Nigeria (CBN), Dr. Olayemi Cardoso, has pledged decisive action to end the commoditization of the Naira, which has become prevalent across the country.

Speaking at the inaugural Stakeholders’ Conference of the Committee of Heads of Banks Operations (CHBO), in Lagos, themed “Commoditization of Naira: The Way Forward,” Cardoso, represented by his Senior Special Adviser, Fatai Kareem, described the practice as a grave threat to Nigeria’s financial system and economic stability.

He noted that the Naira, beyond being a currency, represents the nation’s identity and its stability is essential for economic growth.

However, the growing trend of treating the Naira as a commodity undermines its role as a medium of exchange.

Cardoso highlighted strategies to combat the issue, including public awareness campaigns on responsible currency use, enhancing cash management systems to ensure fair distribution, enforcing regulations against offenders, and promoting digital payment systems to reduce cash dependency.

Chairman of CHBO, Abraham Aziegbe, attributed the commoditization of the Naira to cash shortages in recent years, which forced Nigerians to pay premiums for transactions.

He emphasized the need for robust measures to address cash scarcity and prevent hoarding by financial institutions.

Business

Abuja BDC Denies Money Laundering, Terrorism Financing Allegations

Published

2 weeks ago

January 13, 2025

Samson Adeyanju

By Emmanuel Ogbodo
Abdullahi Abubakar Dauran, outgoing chairman of the Wuse Zone 4 Bureau de Change (BDC), merchants association, has dismissed allegations that the group is involved in money laundering and terrorism financing.
Dauran described the claims as baseless, emphasizing that the association operates within Nigeria’s financial laws.
He also refuted reports suggesting the formation of a parallel BDC group, calling them fabrications.
He urged the public to disregard the allegations and warned The Nation and The Independent newspapers to retract their reports within 48 hours or face legal action.