UK Watchdog Probes StubHub and Viagogo Over Hidden Ticket Fees

The UK’s competition regulator has launched a major investigation into StubHub and Viagogo. The probe focuses on potentially misleading online ticket pricing. It is the first big test of new consumer protection laws.

The Competition and Markets Authority (CMA) is examining whether these platforms are transparent about all fees. The investigation aims to ensure customers see the full cost of tickets upfront. This includes all taxes and booking charges.

StubHub and Viagogo Face Scrutiny Over “Drip Pricing”

The CMA announced the investigation on November 18. It targets eight companies, with StubHub and Viagogo highlighted for their role in ticket reselling. The core issue is a practice known as “drip pricing.”

Drip pricing occurs when additional fees are revealed only during the checkout process. A customer might see an attractive initial price. Then, service fees and other charges are added step-by-step, increasing the final cost significantly.

New Powers for Consumer Protection

This case falls under the new Digital Markets, Competition and Consumers Act. According to Reuters, this law grants the CMA direct enforcement power. The regulator no longer needs to go through courts to rule on consumer law breaches.

The CMA can now impose fines of up to 10% of a company’s global turnover. It can also order businesses to compensate affected customers directly. This represents a significant shift towards stronger consumer rights enforcement.

Sarah Cardell, the CMA’s chief executive, stressed the importance of this action. She said it is crucial people can shop online with confidence. Consumers should know the price they see is the price they will pay.

Industry Response and Next Steps

A spokesperson for Viagogo stated the company would cooperate fully with the investigation. They noted a history of constructive engagement with the CMA. Other businesses under review have also pledged transparency.

StubHub has not yet issued a public statement regarding the probe. The platform is a major seller for events like Carolina Panthers games. Its practices are now under a microscope.

The CMA has also contacted around 100 other companies across various sectors. These firms have been put “on notice” to review their pricing practices. The goal is industry-wide compliance.

Rocio Concha from the consumer group Which? welcomed the investigation. She urged the CMA not to hesitate to fine any firms that have broken the rules. Consumer advocates see this as a pivotal moment for online shopping.

The investigation into StubHub and Viagogo highlights a growing push for pricing clarity. The outcome could reshape how all online tickets are sold. Ensuring transparency is now a central focus for regulators.

Info at your fingertips

What is the CMA investigating exactly?

The CMA is investigating whether StubHub and Viagogo use “drip pricing.” This means hiding extra fees until late in the checkout process. The goal is to ensure customers see the full ticket price from the start.

What new powers does the CMA have?

Under the new law, the CMA can directly impose fines without a court case. It can order compensation for customers. Fines can reach up to 10% of a company’s global turnover.

How have the companies responded?

Viagogo has pledged full cooperation with the investigation. StubHub has not yet made a public statement. Other businesses under review are also committing to transparency.

What happens if a company is found guilty?

The company could face a substantial financial penalty. It may also be forced to change its business practices. The CMA can also require it to pay compensation to affected consumers.

When will we know the outcome?

The CMA is expected to provide updates on the investigation in March. The process involves gathering evidence and reviewing company practices. A final decision will come after this thorough review.

Trusted Sources: Reuters, BBC News, Competition and Markets Authority (CMA)