CMA imposes further fines and compels refunds in consumer law crackdown

The Competition and Markets Authority (CMA) has settled two further consumer law investigations, launched last November under its new direct enforcement powers, imposing significant monetary fines and ordering the companies involved to pay consumer refunds.

Secondary ticketing platform StubHub UK was fined and ordered to pay more than £590,000 in refunds to ticket purchasers after the CMA found that StubHub had not shown users the total price upfront when buying tickets through its platform.

It marks the latest major name to be sanctioned by the CMA for employing “drip pricing” - where consumers are shown an initial headline price for a good, service or digital product and additional mandatory charges are introduced, or ‘dripped’, later in the checkout process.

Angelique Bret, competition law and consumer protection expert with Pinsent Masons explained the penalty comes after significant attempts by the consumer protection enforcer to engage with those impacted by the new rules.

“Since April last year the CMA has published extensive compliance guidance for businesses, engaged with stakeholders via workshops and webinars, and issued warning letters to hundreds of traders,” she said.

“It now expects businesses to be compliant and is ready to pursue suspected consumer law breaches which it considers may significantly impact UK consumers.”

StubHub UK was found to have included a mandatory fee later in the ticket purchase process, rather than the total price up front, as part of the CMA investigation that examined gig and sports event ticket sales between April and December last year.

The CMA said StubHub UK had engaged constructively and immediately ended its non-compliant practices in the wake of the investigation, which saw its fine reduced by 40% as part of the case settlement. When a company settles a CMA consumer investigation, it obtains a penalty discount and agrees not to appeal or challenge the CMA’s infringement decision in court.

Consumers who are impacted by the drip pricing breach will be contacted by the company regarding refunds, and will automatically receive payment onto their original purchase card – with an estimated average payout of around £10 per transaction.

Fellow secondary ticket retailing site viagogo is also under investigation by the CMA, following a crackdown on drip pricing and other unfair commercial practices announced by the consumer watchdog last year. Further developments in the viagogo case are expected later this summer.

Earlier this year AA Driving School and BSM Driving School were fined £4.2 million for breaching drip pricing rules after more than 80,000 learner drivers booking lessons online were shown prices which did not include a mandatory £3 booking fee.

Just days before announcing the StubHub settlement, the appliances retailer Marks Electrical was fined more than £700,000 by the CMA in another consumer protection settlement and told to repay customers around £600,000.

In this instance Marks Electrical was not accused of drip pricing. It was found to have pre-selected and charged customers for extra services without their express consent, contravening other consumer protection rules.

Under direct enforcement consumer law powers that came into force in April 2025, the CMA has so far secured more than £1.95 million in refunds for customers and levied fines exceeding £5.7 million.

“All four consumer enforcement cases which the CMA has closed to date were settled – this means speedier outcomes and lower fines,” added Bret.

“Alongside penalties, the CMA has also imposed consumer redress measures in all four cases, requiring that consumers are refunded within months.”

Emma Cochrane, executive director of consumer protection at the CMA, said the latest fine against StubHub reinforced the CMA’s warning to businesses around breaching drip pricing rules.

“It’s not fair to draw people in with what looks like a good deal, only for them to find the real price is higher when they get to the checkout due to extra charges that can’t be avoided,” she said.

“Going to a live gig or sports game is an event many people save for – and our action today means thousands of fans will get back money taken unfairly through hidden fees.”

Newly published guidance summarises the CMA’s enforcement action to date and outlines its approach to ordering consumer refunds and compensation.

Tadeusz Gielas, competition law and consumer protection expert with Pinsent Masons, explained that drip pricing was a priority area for the CMA as it inhibits price competition.

“Consumers cannot accurately compare at the outset the total price of the product or service they wish to purchase,” he said.

“It is also a ‘per se’ breach of UK consumer law under the Digital Markets, Competition and Consumer Act 2024 (DMCCA) and easier for the CMA to determine infringement than in relation to misleading acts or omissions or other practices that may harm consumers.”

Gielas added: “Whilst the CMA has now accepted settlements in relation to half of the firms targeted in its ‘first wave’ of investigations, it has more recently opened new cases involving fake reviews and unfair contract terms.

“This momentum is expected to continue, and to encompass a wider range of consumer protection rules directly enforceable under the DMCCA, as the CMA increasingly embraces its ‘consumer champion’ role in line with its three-year strategy and 2026-27 annual plan.”