StubHub UK has been ordered to refund over 50,000 customers and cough up a hefty £900,000 fine for not clearly displaying the total ticket price upfront. This decision comes after the Competition and Markets Authority (CMA) launched an investigation into the ticket resale giant. Each affected customer is expected to pocket around £10 on average per transaction, which, let’s be honest, isn’t much considering the hassle.
Emma Cochrane, the CMA’s executive director of consumer protection, stated, “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.” Can you imagine? You think you scored a great deal on that concert ticket, but surprise, surprise—there are mandatory delivery and service fees slapped on at the final step.
The CMA’s findings revealed that between April 6 and December 7 of last year, customers purchasing tickets for gigs and sports events through StubHub UK faced unavoidable extra costs only revealed right before checkout. Talk about a sneaky move! StubHub admitted to breaking the law, which earned them a 40% reduction in their financial penalty. They’ve promised to take steps to “end the conduct” which led to this mess in the first place.
The regulator also mentioned that StubHub UK will be reaching out to fans regarding their refunds. Cochrane added, “Going to a live gig or sports game is an event many people save for – and our action today means thousands of fans will get back money taken unfairly through hidden fees.” It seems like the CMA is sending a clear message to businesses: be transparent about costs, or you might just find yourself facing the CMA’s wrath.
The crackdown on hidden fees doesn’t stop here. Last year, the CMA also turned its attention to other companies like Viagogo, AA Driving School, BSM Driving School, Gold’s Gym, Wayfair, Appliances Direct, and Marks Electrical. They’re investigating practices like pressure selling and drip pricing, which was banned not too long ago. Under the Digital Markets, Competition and Consumers Act introduced last year, the CMA has boosted powers to tackle anti-competitive behavior. They can now decide if consumer laws have been broken without lengthy court processes and can order businesses to pay compensation to affected customers, along with slapping fines of up to 10% of their global turnover.
And speaking of ongoing investigations, the CMA is still looking into Viagogo regarding how it presents fees, with an update expected later this summer. Meanwhile, in March, the CMA ordered the owners of the AA and BSM driving schools to refund more than 80,000 learners who weren’t told the total price for lessons upfront. Consumer group Which? echoed the sentiment that the CMA’s actions serve as a clear warning: hidden fees are a no-go. Rocio Concha, the policy director, remarked, “The law is clear: hitting customers with hidden, extra fees that aren’t clearly disclosed from the start is completely unacceptable.”
So, what’s next? Will StubHub finally straighten up and fly right? Or will we see more companies falling into the same trap? Stay tuned, folks, because this story is far from over!
Kaynak: Orijinal Haber