StubHub UK Fined £900,000 for Hidden Fees: Refunds Issued to Over 50,000 Customers
StubHub UK has been fined nearly £900,000 by the Competition and Markets Authority (CMA) for not displaying the total price upfront to customers when purchasing tickets, as required by law. The CMA found that StubHub UK used a practice called drip pricing, where mandatory fees were added later in the checkout process, causing fans to be surprised by extra charges and potentially buy tickets they wouldn't have chosen otherwise.
As a result of the investigation, StubHub UK has been ordered to refund over 50,000 customers, totaling more than £590,000. The average refund per transaction is expected to be around £10. The company has taken steps to end this practice and has cooperated with the CMA throughout the process, leading to a 40% reduction in the financial penalty.
Affected customers do not need to take any action to receive their refunds, as StubHub UK will contact them directly and automatically refund the amount to the card used for the ticket purchase. By settling the case early with the CMA, the company has agreed not to challenge the decision, allowing for a quicker resolution and refund process for consumers.
The CMA has been actively enforcing consumer protection laws, securing over £1.95 million in refunds for customers and imposing fines exceeding £5.7 million. Emma Cochrane, Executive Director of Consumer Protection at the CMA, emphasized the importance of transparency in pricing and warned businesses against using hidden fees to lure customers with seemingly good deals.
Drip pricing was outlawed under the Digital Markets, Competition and Consumers Act 2024, and the CMA's enhanced consumer enforcement powers aim to prevent unlawful online pricing practices. The CMA's clear pricing campaign provides businesses with guidelines to ensure that prices are transparent and upfront, protecting consumers from unexpected charges.