StubHub UK fined almost £900,000 for 'hidden' ticket fees
The UK's Competition and Markets Authority has fined StubHub UK £889,200 and ordered it to refund over £590,000 to more than 51,000 customers for failing to show the full ticket price upfront, a practice known as drip pricing.
The UK's Competition and Markets Authority (CMA) has imposed a fine of nearly £900,000 on online ticket reseller StubHub UK for using illegal “drip pricing” – hiding mandatory fees until the final stage of the checkout process. The regulator also ordered the company to pay refunds totaling more than £590,000 to affected customers.
According to the CMA, between 6 April and 7 December last year, StubHub added compulsory costs such as delivery and service fees only at the end of the transaction, without including them in the initial display price. This practice violated consumer protection law.
The watchdog identified 51,350 customers who were charged hidden fees, with an average refund of around £10.33 per transaction. The fine of £889,200 was reduced by 40% because StubHub admitted the breach and agreed to settle the case.
Emma Cochrane, executive director of consumer protection at the CMA, stated that hitting customers with hidden fees is illegal and unfair, warning businesses to be transparent or face regulatory action. This is the second financial penalty imposed by the CMA since it gained new powers to decide enforcement without going through the courts.
Under these new powers, the CMA has so far secured over £1.95 million in refunds and levied fines exceeding £5.7 million. The investigation into rival reseller Viagogo UK is ongoing, with an update expected in the summer.
Additionally, the CMA is investigating Gold's Gym for not including its joining fee in advertised membership costs, and examining homeware retailers Wayfair, Appliances Direct, and Marks Electrical over whether their time-limited sales ended as promised. StubHub has been approached for comment.
