The Competition and Markets Authority (CMA) has warned StubHub that it could face court action if it does not change its website.
The CMA has said it is ‘concerned’ that the resale site is not warning customers that they could be turned away at some venues. The watchdog also said that StubHub could be breaking consumer law.
StubHub told the regulator that it will make further changes to its website.
The chief executive of the CMA, Dr Andrea Coscelli, said that the firm had previously said it would change its online booking service following another investigation. However, the CMA has since identified new issues.
The concerns are that StubHub is:
- Failing to warn customers that they may not be allowed into venues that don’t accept resales
- Pressuring customers about ticket availability, potentially using inaccurate data
- Failing to let customers know where they will seated in a venue
- Failing to ensure the full addresses of business vendors are displayed
Dr Coscelli said: “[It was] unacceptable that we have now found these concerns. We have demanded swift action to resolve these problems.”
The CMA also said that if the changes made don’t go far enough it will consider taking court action.
NEMEA regional manager for StubHub UK, Wayne Grierson, said: “StubHub UK has complied with everything that the CMA requested following their investigation into the online secondary ticketing sector in 2018. Our compliance with our undertakings was confirmed through a compliance audit in 2019. We have always cooperated closely with regulators in the interests of our fans, and will continue to do so.
“The CMA has now made additional asks. We remain in open dialogue with the CMA to address both these new asks and any remaining valid concerns about disclosure of information on our site. We are working closely to resolve these as quickly as possible, and in the best interest of our customers, the fans.”
A separate investigation is also underway by the CMA, regarding Viagogo’s purchase of StubHub.
Viagogo said in 2019 it was buying rival ticket reselling firm StubHub from eBay, which bought the company in 2007 for $310m (£238m).
The CMA is considering whether or not the deal will lead to a ‘substantial lessening of competition’ in ticket selling.
Viagogo was previously ordered by the courts to tell buyers which seats they will get and if there is a risk they could be turned away at the door.