StubHub UK has been fined £1.25 million by the Competition and Markets Authority (CMA) for failing to clearly display compulsory booking fees upfront, a practice that misled consumers and breached consumer protection law. The fine comes after a CMA investigation found that the ticket resale platform did not include booking fees in its initial ticket prices, instead adding them later in the purchasing process, which made it difficult for customers to compare prices.
CMA Investigation Uncovers Misleading Pricing
The CMA launched its investigation in 2023 after receiving complaints about hidden fees on StubHub UK, which is owned by Viagogo. The regulator found that StubHub's pricing practices were likely to mislead consumers, as the total price was not clear until late in the transaction. According to the CMA, this practice violated consumer protection regulations that require all compulsory charges to be displayed upfront.
"StubHub's failure to show the full price from the start meant people could not make informed decisions about which tickets to buy," said Sarah Cardell, CEO of the CMA. "This fine sends a clear message that such practices will not be tolerated."
Impact on Consumers and the Market
The hidden fees affected millions of tickets sold on StubHub UK, with the average booking fee adding around 20% to the ticket price. For example, a ticket advertised at £50 could end up costing £60 or more after fees, making price comparison across platforms nearly impossible. The CMA estimated that consumers may have overpaid by tens of millions of pounds as a result.
"This is a significant win for consumers," said a spokesperson for consumer group Which?. "Ticket buyers deserve transparency, and this fine should serve as a warning to all resale platforms."
Viagogo's Response and Broader Context
Viagogo, which acquired StubHub in 2020 for $4.05 billion, said it was disappointed with the CMA's decision and is considering an appeal. A Viagogo spokesperson stated: "We have worked hard to improve transparency and believe we have complied with the law. We are reviewing the CMA's findings carefully."
The CMA has been cracking down on hidden fees in the ticket resale market. In 2018, it secured commitments from Viagogo to improve transparency, and in 2021, it fined the company £375,000 for failing to comply with those commitments. The latest fine against StubHub UK is the largest ever imposed by the CMA for hidden fees in the secondary ticketing market.
What This Means for Consumers
As a result of the CMA's action, StubHub UK has agreed to change its pricing practices to show all compulsory fees upfront. The company will also be required to pay the fine within 30 days. Consumers who believe they were misled may be entitled to compensation, though the CMA has not yet outlined a specific redress scheme.
The CMA's investigation is ongoing, and it continues to monitor the ticket resale market for similar practices. "We will not hesitate to take action against any company that breaks the law," Cardell added.
