Ticket reseller StubHub UK customers to get refunds over illegal hidden fees

Ticket reseller StubHub UK customers to get refunds over illegal hidden fees

Ticket reseller StubHub UK customers to get - The Competition and Markets Authority (CMA) has mandated StubHub UK to issue refunds to over 50,000 customers and impose a £900,000 penalty for failing to reveal total costs at the point of purchase. The refunds, averaging £10 per transaction, will be handled by StubHub UK as part of the settlement. The regulator’s probe uncovered instances where mandatory charges—like delivery and service fees—were added only at checkout, misleading consumers about the final price.

StubHub’s response to the fine

StubHub International attributed the issue to an “isolated platform error,” claiming the fees were unintentionally displayed later in the buying process. It stated its UK platform is designed to show all charges upfront and that the problem was resolved swiftly, with affected customers receiving automatic refunds. The company emphasized its commitment to transparency, though the CMA’s findings indicated a breach of consumer law.

"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," said Emma Cochrane, executive director of consumer protection at the CMA.

Broader context of the CMA’s actions

The fine against StubHub UK aligns with the CMA’s broader review of online pricing tactics, including drip pricing, which was prohibited last year. This practice involves delaying the disclosure of fees until the last stage of a transaction, creating a false impression of lower costs. The regulator’s new powers under the Digital Markets, Competition and Consumers Act now allow it to address anti-competitive behavior directly, ordering refunds and fines up to 10% of global turnover.

Alongside StubHub, the CMA is examining other companies such as Viagogo, AA Driving School, and Marks Electrical for similar practices. Investigations also cover pressure selling and misleading countdown clocks. The agency’s actions against StubHub UK serve as a warning to businesses, with Cochrane stressing the importance of upfront cost transparency. "Our message to businesses is simple: be transparent on costs or risk CMA action," she added.

"The law is clear: hitting customers with hidden, extra fees that aren’t clearly disclosed from the start is completely unacceptable, so it’s good to see the CMA using its new powers to secure hard-earned money back for consumers and issue a significant fine," Rocio Concha, policy director at consumer group Which?, commented.

StubHub UK has been reached for further comment. The CMA’s enforcement against the company highlights its role in protecting consumers from unfair pricing strategies, ensuring they are not misled during high-profile events. The investigation into Viagogo continues, with an update planned for later this summer.