Online ticket reseller StubHub UK fined £900,000 over illegal ‘drip pricing’, 50,000 customers to get refunds world News

Online ticket reseller StubHub UK fined £900,000 over illegal ‘drip pricing’, 50,000 customers to get refunds world News

Online ticket reseller StubHub UK fined over drip pricing.

StubHub UK has been fined £889,200 and ordered to refund more than 50,000 customers after the UK competition watchdog found it failed to clearly disclose the full price of tickets, The Guardian reports.StubHub is a large online marketplace that allows fans to buy and sell tickets to live sports, concerts, theater, and other entertainment events around the world.The Competition and Markets Authority (CMA) said StubHub added mandatory fees, including service and delivery charges, at the final stage of the checkout process rather than including them in the initial ticket price displayed to customers. This practice, known as “drip pricing”, violates consumer protection law.As part of the enforcement action, StubHub must refund more than £590,000 to 51,350 customers who were affected by hidden charges. According to the CMA, the average refund will be around £10.33 per transaction.The watchdog’s investigation found the practice occurred between April 6 and December 7 last year, when customers buying tickets for concerts and sporting events were shown a lower price at the start of the booking process before unavoidable fees were added at checkout.Emma Cochrane, the CMA’s executive director for consumer protection, said businesses should be transparent about costs from the start and warned that companies risk enforcement action if they fail to do so.The regulator said the £889,200 fine included a 40 per cent reduction because StubHub admitted it had breached consumer law and agreed to settle the case.The action marks the second financial penalty imposed by the CMA under new consumer enforcement powers that allow the regulator to take direct action against businesses without having to go to the courts.The authority said it had already secured more than £1.95 million in customer refunds and levied more than £5.7 million in fines since the new powers came into force.The CMA last year launched an investigation into the ticketing practices of eight companies, including Viagogo UK.

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