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The holder takes damage equal to 12.5% of its max HP at the end of each turn. If the opponent uses a contact move on the holder, they will take damage equal to 12.5% of their max HP, and if they are not holding an item, they will obtain Sticky Barb as their held item. Does not affect a Pokemon with Magic Guard.
Sticky Barb is a pretty poor choice for an item. Just about every Pokemon in existence will be carrying an item into battle, so hoping to push off your Sticky Barb onto them is asking for trouble. You could theoretically Trick Sticky Barb onto an opponent, but then Toxic Orb, Flame Orb, or a Choice item are typically even more crippling, without necessarily having a negative effect on the user.
Wild Ferroseed (5%).