StubHub UK fined almost £900,000 over ‘hidden’ ticket fees | Ticket prices
Online ticket seller StubHub UK was fined nearly £900,000 and ordered to pay more than 50,000 fans for not displaying the full price of tickets when booking; This is an illegal practice known as “drip pricing.”
The UK competition watchdog, which last year launched an investigation into the sales practices of eight companies, including rival retailer Viagogo UK, said StubHub must issue refunds to customers in excess of £590,000.
The Competition and Markets Authority (CMA) said the average refund for 51,350 customers who added a “hidden fee” at the end of the online ticket purchasing process was around £10.33 for each transaction.
The CMA also fined StubHub £889,200 for breaching consumer protection legislation.
Emma Cochrane, CMA Director General of Consumer Protection, said: “It’s illegal to hit customers with hidden charges. It’s not fair to lure people in with what looks like a good deal, only to find that the real price is higher when they get to the till because of extra charges that cannot be avoided.”
The CMA investigated the experiences of fans who purchased tickets for concerts and sporting events through StubHub and found that between April 6 and December 7 last year, some were required to pay mandatory costs such as delivery and service fees.
These fees are added at the final stage of the checkout process and are not included in the price initially displayed; this was in violation of consumer law.
The competition watchdog said the almost £900,000 fine included a 40% reduction as StubHub admitted it had broken the law and chose to settle the case.
Cochrane said: “Our message to businesses is simple: be transparent about costs or risk CMA action. Going to a live concert or sports match is an event for which many people save money, and our action today means thousands of fans will get back money unfairly taken through hidden charges.”
This is the second financial penalty the CMA has imposed for breaches of consumer law, as it has been given new powers to decide whether to take action rather than going to the courts.
The CMA said it has so far provided more than £1.95 million in refunds to customers and imposed fines in excess of £5.7 million under its new consumer enforcement powers.
“The law is clear; hitting customers with hidden, extra fees that were not clearly disclosed from the beginning is simply unacceptable,” said Rocio Concha, director of policy and advocacy at Which consumer group. “So it’s good to see the CMA using its new powers to claw back consumers’ hard-earned money and impose a significant fine.”
The CMA said its investigation into Viagogo is ongoing and expects to issue an update in the summer. Gold’s Gym is also being investigated for failing to include the one-time joining fee for its annual membership in its advertised membership costs.
Household goods retailers Wayfair, Appliances Direct and Marks Electrical are being investigated to determine whether their limited-time sales end when they say they do or whether customers are automatically included in purchasing additional services.
StubHub has been approached for comment.
