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(Sharecast News) - StubHub has been ordered to refund more than 50,000 customers after the ticket reseller failed to be upfront about its prices, it was announced on Tuesday.
The Competition and Markets Authority said the website - which allows users in the UK to buy and sell tickets for live shows and events - had not displayed total prices upfront, despite being required to by law.
Instead, the CMA found that between April and December last year, mandatory costs such as delivery and service fees, were only included later in the process. Drip pricing such as this was banned under the Digital Markets, Competition and Consumers Act 2024.
StubHub has therefore been ordered to repay more than 590,000 to customers - on average around 10.33 per transaction -and has been fined 890,000.
Emma Cochrane, executive director of consumer protection at the CMA, said: "Hitting customers with hidden feels 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.
"Our message to businesses is simple: be transparent on costs or risk CMA action."
The CMA acknowledged that StubHub had taken immediate steps to end the practice and engaged "constructively" with the watchdog during its probe. It also admitted breaking the law and agreed to settle the case. As a result, the company received a 40% reduction to the financial penalty.
StubHub will now contact affected fans about their refund. A total of 51,350 customers were affected.
The US company, which also owns Viagogo, has yet to comment. Viagogo is also being investigated by the CMA.
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