Ticket resale site StubHub has come under fire for misleading its customers and could face legal action if it does not make changes to its website, the Competition and Markets Authority has warned.
The CMA said it was concerned the firm is “not complying with commitments it made to clean up its site”, following a previous CMA consumer law investigation.
It highlighted a number of issues it is concerned about, including failing to “adequately warn people that tickets may not get them into an event” and “using misleading messages about ticket availability”.
According to the CMA, StubHub has already told the regulatory body it will make changes to its website.
The CMA said it expected updates to be made “swiftly”, but said changes “do not go far enough to address its concerns, the CMA will consider taking action through the courts”.
CMA chief executive Andrea Coscelli said: “StubHub had previously committed to make important changes to the information on its site, so anyone buying a ticket would know what they were getting before parting with their money. It’s therefore unacceptable that we have now found these concerns.”
He added: “We have demanded swift action to resolve these problems and are pleased StubHub has said it will make changes in response. We will closely monitor the firm’s efforts and, if it does not quickly implement changes that satisfy us, we will take further action – potentially through the courts.”
He said it was “now imperative” the CMA is given “stronger powers to rule on whether a company has broken the law and impose fines if needed”.
“We will continue to work with the government on the most effective way to achieve this,” he said.
Wayne Grierson, regional manager at StubHub UK said: “StubHub UK has complied with everything 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.”
He added: “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.”
The findings come as the secondary ticketing market continues to come under scrutiny, and as a proposed sale of StubHub to Viagogo is investigated by the CMA.
The CMA said it was also continuing to monitor resale Viagogo, following a court order secured to overhaul the way the site does business.
It said a recent review, carried out by Deloitte, “did not find concerns about the site’s compliance with the court order”.