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StubHub UK, a ticket resale platform, has been mandated to issue refunds to over 50,000 customers and pay a fine totaling £900,000. This action follows findings that the company failed to display the full ticket price upfront during purchases, an issue uncovered by the Competition and Markets Authority (CMA). On average, each affected customer will receive roughly £10 back per transaction.
The investigation revealed that customers were charged compulsory fees, including delivery and service costs, which only appeared in the final stages of the checkout process. This practice, known as drip pricing, creates the false impression of lower ticket prices initially, only to increase amounts due at the end of the transaction. The CMA clarified that such hidden fees are illegal and misleading. Emma Cochrane, executive director of consumer protection at the CMA, emphasized, “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.”
StubHub UK acknowledged its breach of consumer protection laws and agreed to a 40% reduction in its financial penalty after cooperating with the regulator and taking remedial measures to stop the unfair practice. The CMA announced that StubHub would directly contact affected customers to arrange refunds. Cochrane added, “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.”
The fine imposed on StubHub is part of a wider CMA crackdown on online pricing strategies, which also involves investigations into other companies for practices like pressure selling and misleading countdown timers. Since the enforcement of the Digital Markets, Competition and Consumers Act last year, the CMA holds expanded authority to address consumer rights violations efficiently, without lengthy court processes. This includes ordering compensation and imposing fines up to 10% of a company’s global turnover. The regulator is also continuing its probe into Viagogo’s pricing disclosures, with further updates expected later in the summer. Consumer advocacy group Which? welcomed the CMA’s interventions as vital in protecting shoppers, with policy director Rocio Concha stating, “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.
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