Climate Pledge Arena to pay $477K in penalties, refunds as a result of AG Ferguson’s hidden fee investigation

Court order ensures concertgoers who paid fee get money back with an additional $10

SEATTLE - Climate Pledge Arena will pay $477,917 in penalties and refunds as a result of Attorney General Bob Ferguson's investigation into a hidden fee the arena charged thousands of Washingtonians.

From February 27, 2023, to July 22, 2023, Climate Pledge added a 3% fee to food and beverage purchases made at the arena. They did not disclose the fee in any way before customers made their purchase, in violation of Washington's Consumer Protection Act. The Attorney General's investigation revealed the company charged the fee on approximately 183,000 transactions over the course of 37 events, bringing in $162,917.16. The legally binding agreement is subject to court approval.

As a condition for resolving his case, Ferguson required that Climate Pledge:

• Conclude a class action lawsuit resulting in full restitution to all Washington consumers who were harmed, to be administered through a claims process, subject to court approval;
• Pay affected customers who file a claim an additional $10 for their inconvenience and loss of their money in addition to the full refund;
• Pay $315,000 to the Attorney General's Office to pay for the cost of bringing the case, future enforcement work and, if necessary, cover claimants' additional $10 payment if the $162,917.16 is insufficient; and
• Disclose all fees it charges customers in the future.

"Washington law is simple: If you charge a fee, you must clearly disclose that fee before someone pays it," Ferguson said. "Climate Pledge was not doing that. Now they are paying the price. If you believe a company is charging hidden fees in Washington, contact my office."

Ferguson opened his investigation following a KIRO news story about the fee. State law requires companies to clearly disclose all added fees and charges to Washingtonians before they charge them. Instead, the fee was not disclosed at the arena kiosks or in digital payments. Attendees only learned about the fee if they asked for a receipt for their transaction.

The arena stopped charging the fee following the KIRO story and the Attorney General's Office confirmed the arena is not currently charging the fee. The court order ensures the arena does not charge any fees without appropriately informing people. If the arena does, the Attorney General's Office can go to court for any violations.

Assistant Attorney General Dan Davies handled the case for Washington.

Honest Fees Initiative

Companies caught charging hidden fees have paid more than $9.6 million as a result of Ferguson's Honest Fees Initiative.

Ferguson is calling on Washingtonians to check their bills, and, if they believe they contain hidden fees, to file a complaint at the Attorney General's website here.

Follow these easy steps to check your bill:

1. Review your bill carefully for additional fees and taxes. Pay special attention to fees that appear to be government-imposed. Though they may appear to be, that may not be the case.
2. Compare your bill against the advertised purchase price. Is it different? Were fees added on without being disclosed to you when you signed up?
3. If you see a fee that was not included in the initial purchase price, or that you believe is deceptive, contact the Washington Attorney General's Office at www.atg.wa.gov/file-complaint.

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Ferguson took the first major action as part of the initiative in December 2019, when global technology company CenturyLink paid $6.1 million to the State of Washington for adding charges to customer bills without accurately disclosing those fees, and failing to provide discounts that their sales agents had promised customers. In July 2020, Frontier Communications Northwest paid $900,000 to Washington to resolve an Attorney General's Office investigation that found Frontier did not adequately disclose fees when advertising and selling its products, and misled subscribers about internet speeds it could provide. Later in July 2020, Charter Communications paid nearly $1 million for failing to disclose its "Broadcast TV Surcharge" to customers who ordered the company's services online. In March 2021, Bothell-based TV and broadband internet provider Wave paid $900,000 to more than 23,000 customers who ordered the company's services online and more than $300,000 to the Attorney General's Office.

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Washington's Attorney General serves the people and the state of Washington. As the state's largest law firm, the Attorney General's Office provides legal representation to every state agency, board, and commission in Washington. Additionally, the Office serves the people directly by enforcing consumer protection, civil rights, and environmental protection laws. The Office also prosecutes elder abuse, Medicaid fraud, and handles sexually violent predator cases in 38 of Washington's 39 counties. Visit www.atg.wa.gov to learn more.

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