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In November last year, the Competition and Markets Authority (CMA) launched a 'major consumer protection' enforcement drive targeting eight businesses over concerns about price transparency. Since then, the CMA has wasted no time, four of those investigations have now closed!
This momentum shows no sign of letting up. The CMA's new consumer enforcement powers are being used quickly and decisively to tackle what it considers to be egregious practices. As anticipated, significant fines are now the norm. According to the CMA's latest press release, it has already secured over £1.95 million in customer refunds and imposed more than £5.7 million in fines under its new regime.
The risk profile of advertising is rising fast, so compliance must be a priority. Any business advertising prices to consumers, regardless of sector , is affected. That is why we are strongly encouraging businesses to review their customer journeys end-to-end.
Today's update re-enforces a clear message: drip pricing is a compliance issue.
CMA enforcement gathers pace on price transparency
The CMA has now closed its investigation into StubHub, finding that ticket prices were displayed without including mandatory fees (such as delivery and service fees), a classic example of drip pricing.
The Final Infringement Notice was handed down today. StubHub must:
- pay a financial penalty of £889,200 for infringing consumer protection law;
- issue refunds to more than 50,000 fans exceeding £590,000; and
- report back to the CMA with updates on the refund process.
As with the AA and Marks Electrical cases, the fine reflects a 40% discount because StubHub admitted to the breach and agreed to settle the case early and not to appeal the decision.
With enforcement moving quickly and fines now firmly embedded in the CMA's toolkit, proactive steps to ensure compliance are no longer optional.
If you'd like support reviewing how you promote prices or stress testing your customer journey for compliance, we're here to help. We regularly work with businesses to identify and fix drip pricing risks, design compliant price promotional strategies and respond swiftly to CMA scrutiny. Speak to Dan Smith or Zoe Pearman for expert advice.
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