StubHub UK has been fined £1.25 million by the Competition and Markets Authority (CMA) for failing to clearly display booking fees at the start of the ticket-buying process, leaving consumers unaware of the true cost until late in the transaction. The CMA has also launched a formal investigation into Viagogo, another major secondary ticketing platform, over similar concerns regarding fee transparency.
CMA crackdown on hidden fees
The fine against StubHub UK, a subsidiary of eBay, comes after the CMA found the company breached consumer protection law by not showing total prices prominently. The regulator stated that StubHub's practices misled customers, as fees were only revealed at the final payment stage, making it difficult for shoppers to compare prices across different sellers.
According to the CMA, the hidden fees added an average of 20-30% to the advertised ticket price. The investigation covered transactions from 2020 to 2022, during which thousands of tickets were sold without upfront fee disclosure.
Viagogo under investigation
Separately, the CMA has opened a formal investigation into Viagogo, a platform that merged with StubHub's international business in 2020. The regulator is examining whether Viagogo complies with consumer law regarding the presentation of fees and the accuracy of ticket information, such as seat locations and restrictions.
Viagogo has faced previous legal action in the UK, including a 2018 court order requiring the company to improve transparency. The current investigation could lead to further fines or binding commitments to change business practices.
Impact on consumers
Consumer groups welcomed the action, noting that hidden fees have long been a major frustration for ticket buyers. Citizens Advice reported that secondary ticketing platforms often add significant mark-ups without clear disclosure, leaving fans paying far more than expected.
The CMA's enforcement director, Michael Grenfell, said, 'This fine sends a clear message that businesses must be upfront about fees. We will not hesitate to take action against companies that break the law and harm consumers.'
StubHub UK has stated it will pay the fine and has since updated its website to show all fees upfront. Viagogo said it is cooperating with the CMA investigation and is committed to compliance.
