UK watchdog to probe StubHub in crackdown on online selling tactics

(Sharecast News) - The competition watchdog has launched investigations into a range of companies, including StubHub and Wayfair, as part of a crackdown on online selling tactics. Unveiling a package of measures on Tuesday, the Competition and Markets Authority said it wanted to ensure consumers can shop with confidence, and that fair-dealing companies can compete on a level playing field.

Selling tactics under review include countdown timers, time-limited offers and drip pricing.

Drip pricing is when the advertised price creeps up during the sale process, through the addition of previously undisclosed fees or charges.

The CMA said research showed that it was particularly prevalent in event tickets, cinema tickets and gym memberships.

It has opened probes into eight brands: AA Driving School, BSM Driving School, Gold's Gym, Viagogo, Appliances Direct and Marks Electrical as well as StubHub and Wayfair.

StubHub and Viagogo - which are part of the same company - are being assessed over mandatory additional charges applied when consumers buy tickets, and whether or not these fees are included upfront.

The driving schools, meanwhile, are being investigated over how they present mandatory fees, while at Gold's Gym, the CMA will assess if its one-off joining fee and if the way it is presented breaks the law.

The homeware retailers are being probed to see if time-limited sales ended when they said they would.

The CMA is also writing to a further 100 business across 14 sectors outlining its concerns about their use of additional fees and sales tactics, including misleading countdown timers.

Sarah Cardell, chief executive of the CMA, said: "It's our job to protect consumers from misleading prices an illegal pressure selling and today marks an important milestone a we take action to make sure businesses do the right thing by their customers."

The CMA was given new powers on online anti-competitive behaviour under the Digital Markets, Competition and Consumers Act 2024. It can now decide directly if laws have been broken, rather than having to rely on the courts, and can fine companies up to 10% of global turnover.

Of the eight companies being probed, the CMA said it had not yet reached any conclusions about whether laws had been broken or not.

Separately, the UK government is widely expected to announce this week plans to ban the resale of tickets for live events at a profit.

The long-awaited moved it designed to halt ticket touts and crack down on companies that resell tickets to popular music and sports events at sharply inflated prices.