StubHub UK has been ordered to refund more than 50,000 customers and pay a £900,000 fine for failing to display total ticket prices upfront, according to the Competition and Markets Authority (CMA). Each affected customer is expected to receive approximately £10 per transaction on average. The action follows a CMA investigation into drip pricing, a practice that was banned last year under the Digital Markets, Competition and Consumers Act (DMCCA).
CMA Investigation and Findings
The CMA found that between 6 April and 7 December last year, some customers buying tickets for gigs and sports events via StubHub UK were required to pay mandatory costs such as delivery and service fees. These charges were unavoidable but only added at the final checkout stage, according to the CMA. StubHub UK admitted breaking the law and received a 40% reduction to its financial penalty. The regulator said StubHub UK has also taken steps to "end the conduct".
"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," said Emma Cochrane, executive director of consumer protection at the CMA. The CMA said StubHub UK will contact fans about their refund.
Broader CMA Crackdown on Drip Pricing
The StubHub penalty is part of a wider CMA review of online pricing practices. Drip pricing, where fees are introduced later in the buying process rather than upfront, was banned last year. The CMA has also launched investigations into Viagogo, AA Driving School, BSM Driving School, Gold's Gym, Wayfair, Appliances Direct and Marks Electrical. These investigations cover practices including pressure selling, drip pricing, and misleading countdown clocks.
"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," said Cochrane. "Our message to businesses is simple: be transparent on costs or risk CMA action."
CMA's Enhanced Powers Under the DMCCA
The Digital Markets, Competition and Consumers Act, introduced last year, gives the CMA new powers to tackle anti-competitive behaviour. The CMA can now decide if consumer laws have been broken without having to go through the courts. It can order businesses to pay compensation to affected customers and fine companies up to 10% of global turnover. This marks a significant shift from the previous requirement to seek court enforcement.
Rocio Concha, policy director at consumer group Which?, said: "The law is clear: hitting customers with hidden, extra fees that aren't clearly disclosed from the start is completely unacceptable, so it's good to see the CMA using its new powers to secure hard-earned money back for consumers and issue a significant fine."
Summary of StubHub Penalty
| Item | Detail |
|---|---|
| Number of affected customers | Over 50,000 |
| Average refund per transaction | £10 |
| Total fine | £900,000 |
| Reduction for admitting breach | 40% |
| Period of infringement | 6 April to 7 December last year |
| Regulator | Competition and Markets Authority (CMA) |
| Legal basis | Digital Markets, Competition and Consumers Act |
What Marketplace Operators Should Do
The StubHub case serves as a clear warning for all online marketplaces and ticket resellers. Sellers and platform operators must ensure that all mandatory fees—such as delivery charges, service fees, and booking fees—are displayed prominently upfront in the total price. Failing to do so can lead to CMA investigations, fines, and forced refunds.
The CMA's new powers mean that businesses found in breach of consumer protection laws face penalties of up to 10% of global turnover, plus compensation orders. Marketplace operators should review their checkout flows and pricing displays to ensure full compliance. The regulator has indicated that it will continue to target drip pricing and other deceptive practices across e-commerce sectors.
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