More than 50,000 fans who bought tickets for gigs and sports events through StubHub UK are to receive refunds after the Competition and Markets Authority found the reseller had illegally hidden fees until the final checkout stage.
The CMA ordered StubHub International, which operates the platform in Europe, to pay a £900,000 fine and contact affected customers, who are expected to receive around £10 each per transaction.
“StubHub UK must refund over 50,000 customers and pay a £900,000 fine for hidden fees.”
The watchdog found that between 6 April and 7 December last year, some buyers were required to pay unavoidable delivery and service charges that only appeared at checkout, rather than being shown the full price upfront.
Emma Cochrane, the CMA’s executive director of consumer protection, said: “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 International described the hidden fees as an “isolated platform error” that meant some charges appeared later in the buying process. “Our UK platform is designed to display all fees upfront,” it said, adding that it had “identified and corrected the issue promptly, and all affected customers will receive an automatic refund”.
The company admitted breaking the law and received a 40% reduction to its financial penalty. It has also taken steps to “end the conduct”, the regulator said.
The practice, known as drip pricing, was banned last year under the Digital Markets, Competition and Consumers Act, which gave the CMA new powers to decide whether consumer laws have been broken without going through the courts, and to order businesses to pay compensation and fines.
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. Our message to businesses is simple: be transparent on costs or risk CMA action.”
The CMA has also launched investigations into Viagogo, AA Driving School, BSM Driving School, Gold’s Gym, Wayfair, Appliances Direct and Marks Electrical, looking at practices including pressure selling, drip pricing, and misleading countdown clocks.
StubHub UK has been contacted for comment.