StubHub UK customers to be reimbursed for illegal hidden fees

Ticket seller StubHub UK has been ordered to refund more than 50,000 customers and pay £900,000 in fines.

Following an investigation by the Competition and Markets Authority (CMA), each customer is expected to receive an average of £10 per transaction.

“It’s illegal to hit customers with hidden fees. It’s unfair to lure people in with what looks like a good deal, only for them to get higher fees when they get to the exit due to extra charges they can’t get the real value,” said Emma Cochrane, consumer protection executive at the CMA.

The regulator said StubHub UK would be contacting fans about their refunds.

StubHub’s fine comes as the CMA investigates several firms as part of a review of online pricing practices that were banned last year for drop pricing.

Drip pricing is when fees and charges are introduced earlier in the purchase process rather than up front, giving customers the impression that a product is cheaper than it really is.

The CMA found between 6 April and 7 December last year that some customers buying tickets for gigs and sporting events through StubHub UK were required to pay mandatory costs such as delivery and service charges, which were unavoidable but only added at the final inspection stage.

The regulator found that StubHub UK had breached the law and received a 40% reduction in the financial penalty. “He has also taken steps to stop his conduct,” he added.

StubHub UK has been contacted for comment.

“Going to a live gig or sports game is an event that many people save for — and our action today will help thousands of fans recover money that was improperly bilked from them,” said Cochrane.

“Our message to businesses is simple: be transparent about costs or risk CMA action.”

Last year, so did CMM He started investigations To Viagogo, AA Driving School, BSM Driving School, Gold Gym, Wayfire, Goods Direct and Mark Electric.

It is looking into practices including pressure selling, trickle-down pricing and misleading counting hours as part of its investigations.

Under the Digital Markets, Competition and Consumer Act introduced last year, the CMA has powers to crack down on anti-competitive behaviour.

Consumer laws have now been breached – from going to court and ordering businesses to pay compensation to affected customers and up to 10% of global sales.

At the same time as announcing the fine for StubHub UK, the CMA said its investigation into Viagogo’s payment approach was continuing and that improvements had been made this summer.

In March, the CMA ordered the owner of AA and BSM driving schools to pay refunds to more than 80,000 students. Since we are unable to disclose the total price for lessons when booking online.

Which consumer group? The regulator’s action served as a stark warning.

“The law is clear: hitting customers with hidden, unexplained surcharges is completely unacceptable. So it’s good to see the CMA using its new powers to get consumers back their hard-earned money and handing out hefty fines,” said policy director Rocio Concha.