StubHub UK has been fined nearly £900,000 and ordered to refund more than 50,000 fans for failing to display the full ticket price at the time of booking, a practice known as "drip pricing" that violates consumer protection law.
CMA Investigation and Penalties
The Competition and Markets Authority (CMA) announced that StubHub must issue refunds exceeding £590,000 to 51,350 customers. The average refund per transaction is approximately £10.33. Additionally, the CMA imposed a fine of £889,200 for infringing consumer protection law.
Emma Cochrane, executive director of consumer protection at the CMA, stated: "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."
Details of the Violation
The CMA investigated the experience of fans buying tickets for gigs and sports events on StubHub between 6 April and 7 December last year. It found that some customers were required to pay mandatory costs such as delivery and service fees, which were added only at the final stage of checkout and not included in the initial price. This practice broke consumer law.
The penalty of almost £900,000 includes a 40% reduction because StubHub admitted to breaking the law and chose to settle the case.
StubHub's Response
StubHub stated that the hidden fees were due to an "isolated platform error" and not part of its business model. A spokesperson said: "StubHub International supports the CMA's work to protect consumers online and fully cooperated with this investigation. Our platform is designed to display all fees upfront. Due to an isolated platform error, some minor fees appeared at checkout rather than earlier in the buying process. We identified and corrected the issue promptly, and all affected customers will receive an automatic refund."
Broader CMA Enforcement
This is the third financial penalty the CMA has imposed for a breach of consumer law since gaining new powers to decide on enforcement without going through courts. Last week, the CMA fined appliances retailer Marks Electrical £720,000 and ordered it to refund £600,000 to nearly 40,000 customers for automatically charging for extra services.
The CMA said that under its new consumer enforcement powers, it has secured over £1.95 million in refunds for customers and levied fines exceeding £5.7 million.
Rocio Concha, director of policy and advocacy at consumer group Which?, said: "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."
Ongoing Investigations
The CMA's investigation into Viagogo, a rival reseller, is continuing, with an update expected in the summer. The CMA is also investigating Gold's Gym for not including its one-off joining fee in advertised membership costs, and homeware retailers Wayfair and Appliances Direct over time-limited sales and automatic opt-ins for additional services.
