StubHub UK, the prominent online ticket reseller, has been mandated to repay more than 50,000 customers a total of £590,000 following an intervention by the Competition and Markets Authority (CMA). In addition to the refunds, the company has been issued a fine of nearly £900,000, bringing the total financial penalty and restitution to approximately £1.5 million.
The action comes as a direct result of StubHub's use of 'drip pricing', a practice where mandatory fees, such as booking or service charges, are not clearly displayed upfront but are instead added later in the purchasing process. This often leads to the final price being significantly higher than the initial figure shown, misleading consumers and making it difficult to compare prices effectively across different platforms.
The CMA has been actively investigating the secondary ticket market for several years, aiming to ensure transparency and fairness for consumers. StubHub had previously committed to addressing these issues following earlier enforcement action. However, the latest findings indicate that the company failed to fully comply with these undertakings, prompting the new, more substantial penalties.
This enforcement action underscores the CMA's continued commitment to tackling misleading pricing practices across various sectors. The regulator has consistently warned businesses that they must display the full, final price of goods and services from the outset, including all non-optional charges, to allow consumers to make informed decisions. The substantial fine and refund order serve as a clear message to other companies that may be employing similar tactics.
The refunds will be distributed to customers who purchased tickets through StubHub UK and were subject to these hidden fees. The CMA’s intervention aims not only to compensate affected consumers but also to deter other platforms from engaging in practices that obscure the true cost of purchases, fostering a more transparent online marketplace for events and entertainment.