StubHub UK customers to get refunds over illegal hidden fees
Ticket seller StubHub UK has been ordered to pay refunds to more than 50,000 customers and a £900,000 fine for not disclosing the total price in advance when buying tickets.
Each customer is expected to receive an average of £10 per transaction following an investigation by the Competition and Markets Authority (CMA).
“Hitting customers with hidden charges is illegal. It’s not fair to lure people in with what looks like a good deal, only to find when they get to the checkout that the real price is higher because of extra charges that couldn’t have been avoided,” CMA Consumer Protection Executive Director Emma Cochrane said.
StubHub UK will contact fans about refunds, the regulator said.
The fine against StubHub comes as the CMA investigates several firms over online pricing practices such as drip pricing, which were banned last year.
Drop pricing is when fees and charges are introduced later in the purchasing process rather than up front, giving customers the impression that a product is cheaper than it actually is.
The CMA found that some customers who purchased tickets for concerts and sporting events through StubHub UK between April 6 and December 7 last year were required to pay mandatory charges such as delivery and service fees, which were unavoidable but were only added at the final checkout stage.
The regulator said StubHub UK admitted it had breached the law and received a 40% reduction in its financial penalty. He also added that steps were being taken to “end the behaviour”.
StubHub UK has been contacted for comment.
“Going to a live concert or sports game is an activity for which many people save money, and our action today means thousands of fans will get back money unfairly taken through hidden fees,” Cochrane said.
“Our message to businesses is simple: be transparent about costs or risk CMA action.”
Last year the CMA also launched investigations into Viagogo, AA Driving School, BSM Driving School, Gold’s Gym, Wayfair, Appliances Direct and Marks Electrical.
As part of its investigations, it is investigating practices such as pressure selling, drip pricing and misleading countdown clocks.
Under the Digital Markets, Competition and Consumers Act, which came into force last year, the CMA has the power to tackle anti-competitive behaviour.
Instead of going to the courts, it can now decide whether consumer laws have been broken and order businesses to pay compensation to affected customers and fine companies up to 10% of their global turnover.
At the same time as announcing the fine to StubHub UK, the CMA said its investigation into Viagogo’s fee submission was ongoing and an update would be provided later this summer.
In March, the CMA ordered the owner of AA and BSM driving schools to refund more than 80,000 students after failing to disclose the total cost of lessons in advance when booking online.
Which consumer group? The regulator’s action served as a stark warning.
“The law is clear: hitting customers with hidden, extra charges that weren’t clearly disclosed from the start is completely unacceptable, so it’s good to see the CMA using its new powers to secure consumers back their hard-earned money and impose a significant fine,” said policy director Rocio Concha.
