Back in June I featured the case of AG of London who was charged £60 in fees when she booked four tickets through the online agency StubHub.
The charges had not been specified during the booking process (unless you clicked a link beside the final total on the payment page), but the mark-up was shown on the confirmation email. The Advertising Standards Authority agreed the company was in breach of its committee of advertising practice code by not making its charges clear at the outset, but it was powerless to insist on a refund and StubHub, part of eBay, refused to offer one.
StubHub told me it would make its tickets look uncompetitively expensive if it included fees in the advertised price, but that its vague mention of service charges (which can be up to 20% of the ticket price) complied fully with the code. Undeterred, AG took her case to the small claims court and, as a result, StubHub has been required to refund her the £60 fee plus court costs and interest.
StubHub insists AG can’t be said to have “won” her case, because it was unaware of the legal claim: “It is disappointing to receive a default judgement where StubHub did not have the opportunity to defend or represent itself in court, and more importantly where our site is fully compliant with applicable laws,” says a spokesperson.
“While on this occasion we decided against setting aside this judgment, StubHub will continue to vigorously defend any claims of this nature in the future. To reiterate, on StubHub.co.uk, we make it clear … that there are additional service fees added on to the price.” Indeed it does, but the company can’t seem to grasp that mentioning the existence of charges in a footnote below the ticket price is not enough; the exact amount must be included in the ticket price, according to the ASA’s code.
StubHub’s website still declares in small print beneath each ticket price that service fees may apply, without giving any indication what they are.
The ASA hails the “positive result” for AG. “We’ll reassess StubHub’s marketing to see whether they have taken the guidance on board, and if it appears they haven’t we’ll consider what further action may be needed,” says a spokesperson.
AG considers her case a victory for the consumer against a corporate giant: “I hope this encourages more customers to apply for refunds for booking fees.”
If you need help email Anna Tims at your.problems@observer.co.uk or write to Your Problems, The Observer, Kings Place, 90 York Way, London N1 9GU. Include an address and phone number.
