StubHub UK to Refund Customers and Pay Fine for Hidden Fees
Ticket reseller StubHub UK has been mandated to refund over 50,000 customers and pay a £900,000 fine after failing to disclose the total ticket price upfront during purchases.
Each affected customer is anticipated to receive an average refund of £10 per transaction, following an investigation conducted by the Competition and Markets Authority (CMA).
"Hitting customers with hidden fees is illegal. It's not fair to draw people in with what looks like a good deal, only for them to find the real price is higher when they get to the checkout due to extra charges that can't be avoided," said Emma Cochrane, executive director of consumer protection at the CMA.
The regulator confirmed that StubHub UK will reach out to customers regarding their refunds.
The fine imposed on StubHub UK is part of the CMA's broader review of online pricing practices, which includes the investigation of drip pricing—a practice banned last year.
Drip pricing refers to the addition of fees and charges later in the purchasing process rather than upfront, misleading customers into believing the product is cheaper than it actually is.
The CMA's findings revealed that between 6 April and 7 December last year, some customers purchasing tickets for concerts and sports events through StubHub UK were required to pay unavoidable mandatory fees such as delivery and service charges, which were only disclosed at the final checkout stage.
The regulator noted that StubHub UK admitted to breaching the law and received a 40% reduction in its financial penalty. The company has also implemented measures to cease the unlawful conduct.
StubHub UK has been contacted for comment.
"Going to a live gig or sports game is an event many people save for – and our action today means thousands of fans will get back money taken unfairly through hidden fees," said Cochrane.
"Our message to businesses is simple: be transparent on costs or risk CMA action."
Wider CMA Investigations into Online Pricing Practices
Last year, the CMA launched investigations into several companies including Viagogo, AA Driving School, BSM Driving School, Gold's Gym, Wayfair, Appliances Direct, and Marks Electrical.
The investigations focus on practices such as pressure selling, drip pricing, and misleading countdown clocks.
Under the Digital Markets, Competition and Consumers Act introduced last year, the CMA has enhanced powers to address anti-competitive behavior. It can now determine if consumer laws have been violated without court involvement, order businesses to compensate affected customers, and impose fines up to 10% of a company's global turnover.
Alongside the StubHub UK fine announcement, the CMA stated that its investigation into Viagogo's fee presentation is ongoing, with an update expected later this summer.
In March, the CMA ordered the owner of the AA and BSM driving schools to refund over 80,000 learners after failing to disclose the total price for lessons upfront during online bookings.
Consumer group Which? welcomed the regulator's action as a strong warning to businesses.
"The law is clear: hitting customers with hidden, extra fees that aren't clearly disclosed from the start is completely unacceptable, so it's good to see the CMA using its new powers to secure hard-earned money back for consumers and issue a significant fine," said Rocio Concha, policy director at Which?.
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- Eight firms under investigation over online pricing
- AA and BSM ordered to refund learner drivers for hidden fees
