As part of an agreement with the Canada’s Competition Bureau, StubHub Canada Ltd. and StubHub Inc. will pay a $1.3 million penalty to correct what the Bureau found led to misleading pricing claims on their sites.
After an investigation, the Bureau found that StubHub had advertised tickets on their website and mobile apps, as well as promotional emails to Canadians, for unattainable prices. Consumers were unable to see the mandatory fees on tickets until they clicked or tapped on a filter to see the price inclusive of fees, which would only be later revealed during the final stage of the checkout process, the Bureau said in a press release, noting that in some cases, ticket buyers who filtered results were still told to pay more than the price originally showed.
“Prices advertised online for event tickets should reflect the true cost of buying those tickets,” Commissioner of Competition Matthew Boswell said in a statement. “The Bureau is committed to challenging false or misleading pricing claims in the digital economy, and reminds all vendors to review their marketing practices.”
The Bureau said that it has acknowledged StubHub’s cooperation with resolving this matter, and as part of the agreement, StubHub will ensure that prices for tickets to event in Canada will now include all mandatory fees throughout the ticket purchasing process. A compliance program will also be established to implement new procedures that comply with the law.
This news follows an investigation launched the Bureau in 2017, which warned the ticketing industry to review their marketing practices and display the true price of tickets upfront. Additionally, the UK’s Competition and Markets Authority (CMA) launched a similar investigation in 2018, asking various resale platforms to increase its transparency requirements. Late last month, the CMA ordered StubHub to make changes to its British website, noting that the ticketing site needed to take sufficient steps to show that the full addresses of business sellers are displayed.
New broke last night that Viagogo has officially announced the completion of the $4 billion StubHub acquisition.
Last Updated on February 14, 2020 by Olivia Perreault