San Francisco based ticket resale agent StubHub has been fined 1.3 million dollars by Canada’s Competition Bureau for advertising misleading ticket prices Now Toronto reported yesterday afternoon. The website has been charged with not disclosing hidden fees until final point of sale unless users turned on a filter, though as the CCB has found, customers were still being charged more than listings even with the filter switched on.
As part of a 10 year binding agreement, StubHub are voluntarily cooperating with the bureau to establish a compliance program to prevent discrepancies and unattainable prices. Known throughout the live entertainment industry as “drip pricing”, StubHub is being accused of advertising one price and then “gouging” by adding mandatory fees after. The agreement would force the retailer to list all mandatory fees throughout the entire purchasing process.
It’s the latest in the CCB’s efforts to kick up their efforts as last year they fined Ticketmaster along with car rental agencies like Avis and Budget for a combined 11 million dollars under similar charges.
It was recently announced that London based ticket exchange company Viagogo would acquire StubHub from Ebay for four billion dollars once given the green light from multiple regulatory bodies, until which they will remain separate entities. The financial aspects of the deal have yet to be completed.
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