Le Lézard
Classified in: Science and technology, Business, Sports and recreation
Subjects: LAW, CFG

StubHub to pay $1.3 million penalty for advertising unattainable prices for event tickets


Bureau continues to push for transparency in online pricing

GATINEAU, QC, Feb. 13, 2020 /CNW/ - StubHub Canada Ltd. and StubHub Inc. will pay a $1.3 million penalty as part of an agreement with the Competition Bureau to correct what the Bureau concluded are misleading pricing claims in the online sale of tickets to entertainment and sporting events.

A Bureau investigation determined that StubHub advertised tickets at unattainable prices on its websites, mobile apps and in promotional emails to Canadians. The Bureau found that consumers could not buy tickets at advertised prices because StubHub charged consumers mandatory fees in addition to the prices advertised.

Unless consumers clicked or tapped to turn on optional filters to see prices inclusive of fees, those fees were only revealed at later stages of the purchasing process. The Bureau concluded that providing these optional filters and disclosing fees later in the process did not prevent the initial prices from being misleading. Moreover, the Bureau found that, in some cases, consumers who filtered results to see inclusive pricing were still asked to pay more than the prices shown as inclusive of fees. 

As part of an agreement registered with the Competition Tribunal, StubHub will ensure that prices for tickets to events in Canada will now include all mandatory fees throughout the ticket purchasing process. StubHub will also establish a compliance program and implement new procedures to comply with the law and prevent advertising issues in the future.

The Bureau acknowledges StubHub's voluntary cooperation in resolving this matter.

Quote

"Prices advertised online for event tickets should reflect the true cost of buying those tickets. The Bureau is committed to challenging false or misleading pricing claims in the digital economy, and reminds all vendors to review their marketing practices."

-Matthew Boswell
Commissioner of Competition

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The Competition Bureau, as an independent law enforcement agency, ensures that Canadian businesses and consumers prosper in a competitive and innovative marketplace.

 

SOURCE Competition Bureau


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