StubHub has been ordered to refund more than 50,000 of its customers after they were shown to be underhand regarding hidden fees.
It comes after an investigation by the Competition And Markets Authority (CMA) in the UK which found that the ticketing platform was guilty of ‘drip pricing ’, where consumers are told about fees and charges on top of the initial price. The practice was banned in the UK last year.
The CMA found that between April and December last year many customers buying tickets for gigs and sports events via StubHub were required to pay mandatory costs such as delivery and service fees – ie unavoidable costs, but, crucially, only added at the final checkout stage.
In a statement, Emma Cochrane, Executive Director of Consumer Protection at the CMA 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 has also been fined, but because they admitted breaking the law, they have received a 40% reduction to their penalty, meaning that they will have to cough up just £900,000. Their customers are liable to receive, on average, a £10 refund – enough for a pint and a packet of crisps, then.
The platform has said it has taken steps to end the conduct, and said in a statement: "Our UK platform is designed to display all fees upfront," adding it had "identified and corrected the issue promptly, and all affected customers will receive an automatic refund".
The CMA have a number of organisations in their sight regarding the practice of drip pricing, including BSM Driving School, Appliances Direct and one of StubHub’s rivals: Viagogo. The CMA has said that its investigation into Viagogo over its fees was ongoing and that an update was due “later this summer”.
Meanwhile, Cochrane added that: "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."
