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

Ticket reseller StubHub UK has been ordered to refund more than 50,000 customers and pay a £900,000 fine for failing to display the total price upfront when selling tickets. The Competition and Markets Authority (CMA) conducted an investigation, revealing that StubHub illegally added mandatory costs, such as delivery and service fees, only at the final checkout stage. These fees were unavoidable, leading customers to pay more than initially advertised. Each affected customer is expected to receive an average of £10 per transaction. Emma Cochrane, executive director of consumer protection at the CMA, stated that "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 UK has acknowledged breaking the law and received a 40% reduction in its penalty for admitting wrongdoing and taking steps to cease the conduct. The CMA's action is part of a broader review of online pricing practices, including "drip pricing," which was banned last year. Drip pricing involves introducing fees and charges later in the purchasing process to create the impression of a lower initial price. The investigation covered the period between April 6 and December 7 last year. The CMA has issued a clear warning to businesses, emphasizing that "Our message to businesses is simple: be transparent on costs or risk CMA action." The CMA also has ongoing investigations into other firms, including Viagogo, regarding their fee presentation. In a separate but related action, the owner of AA and BSM driving schools was ordered to refund over 80,000 learners for similar undisclosed upfront costs. Consumer group Which? has lauded the CMA's action as a significant warning to businesses about the importance of clear and upfront pricing.

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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.