StubHub UK has been hit with a £889,200 fine by the Competition and Markets Authority (CMA) for its failure to display the full price of tickets upfront, in a practice known as 'drip pricing'. This breach of consumer protection law affects over 50,000 customers who were charged mandatory costs such as delivery and service fees at the final stage of their online ticket purchase. The watchdog has also ordered StubHub to issue refunds exceeding £590,000 to these affected individuals.
The CMA's investigation, launched last year, identified 51,350 transactions where the initial price shown did not include the full cost, resulting in an average refund of approximately £10.33 per affected transaction. These charges were added only at checkout, leaving consumers unaware of the true cost until it was too late. The practice is unfair and misleading, enticing customers with good deals that ultimately prove to be more expensive.
Emma Cochrane, Executive Director of Consumer Protection at the CMA, stressed that hidden fees are unacceptable and undermine consumer trust in online platforms. She highlighted that attending live events often involves significant expenditure for many people, and the CMA's intervention ensures that thousands of fans will recover money unfairly taken through these hidden charges.
The fine imposed on StubHub reflects a 40% reduction, as the company admitted to breaking the law and opted to settle the case. This action by the CMA demonstrates its commitment to enforcing consumer protection laws and promoting transparency in pricing across online platforms. Ms Cochrane reinforced the CMA's message to businesses: be transparent about costs or face potential enforcement action.
This is the second significant penalty issued by the CMA for a breach of consumer law since it gained new powers allowing it to directly decide on enforcement actions. The watchdog has secured over £1.95 million in customer refunds and levied fines exceeding £5.7 million under these enhanced consumer enforcement powers. An ongoing investigation into Viagogo remains active, with an update expected later this summer. The CMA is also probing other sectors, including Gold's Gym for undisclosed joining fees and homeware retailers like Wayfair and Appliances Direct for potentially misleading time-limited sales and automatic opt-ins for additional services.