Key facts
- StubHub UK fined £889,200 for "drip pricing" of tickets.
- Over 50,000 customers will receive refunds totaling more than £590,000.
- Mandatory fees like delivery and service were added at the final checkout stage.
- The CMA stated that adding hidden fees at the end of the purchase process is illegal.
- StubHub received a 40% reduction on its fine for admitting legal infringement and settling.
StubHub UK has been fined nearly £900,000 and ordered to issue refunds exceeding £590,000 to over 50,000 customers for engaging in illegal "drip pricing" practices. The UK's Competition and Markets Authority (CMA) found that the online ticket reseller added mandatory costs, such as delivery and service fees, at the final stage of the checkout process, rather than including them in the initial advertised price. This practice violates consumer protection law.
Emma Cochrane, executive director of consumer protection at the CMA, stated that hidden fees are illegal and unfair, drawing customers in with seemingly good deals only to reveal higher prices at checkout. The investigation covered ticket purchases for gigs and sports events between April 6 and December 7 of last year.
The penalty of £889,200 includes a 40% reduction because StubHub admitted to breaking the law and agreed to settle the case. Cochrane emphasized that businesses must be transparent about costs to avoid CMA action, noting that thousands of fans will now receive money back that was unfairly taken.
This marks the second financial penalty the CMA has issued since gaining new powers to decide on enforcement actions independently. Under these new powers, the CMA has already secured over £1.95 million in refunds for customers and levied fines exceeding £5.7 million. The CMA's investigation into rival reseller Viagogo UK is ongoing, with an update expected in the summer. The authority is also investigating other companies, including Gold’s Gym, Wayfair, Appliances Direct, and Marks Electrical, for potential breaches of consumer law.