Viagogo fined $7.1m for deceptive conduct

AUCKLAND: Online ticket reseller Viagogo has been ordered by Australia’s Federal Court to pay a penalty of $A7 million ($NZ7.1 million) for breaching the Australian Consumer Law by making false or misleading representations when reselling tickets for live music and sports event.

The proceedings were brought by the Australian Competition and Consumer Commission, which includes one commissioner from New Zealand’s Commerce Commission.

The court found in 2019 that Viagogo made false or misleading representations to consumers that it was the ‘‘official’’ seller of tickets to particular events, that certain tickets were scarce, and that consumers could buy tickets for a particular price when this was not the case because significant fees, such as a 27.6% booking fee, were not disclosed until late in the booking process.

From May 1, 2017, to June 26, 2017, Viagogo’s website attracted consumers by advertising a headline price which did not specify a total price for tickets. It also failed to adequately disclose to consumers that it was not a primary ticket seller.

Examples included a ticket for the Book of Mormon advertised at $A135 but which was sold for $A177.45 including booking and handling fees, as well as Ashes cricket tickets advertised at $A330.15, but sold for $A426.81 after fees were added.

In imposing the penalty of $A7 million, Justice Burley described the misrepresentations as serious or very serious and considered the conduct demonstrated a level of deliberateness. He described one category of representations as having been made on ‘‘an industrial scale’’.

Australian Competition and Consumer Commission chairman Rod Sims said Viagogo’s business practices were unacceptable.

‘‘Viagogo misled thousands of consumers into buying tickets at inflated prices when they created a false sense of urgency by suggesting tickets were scarce.’’

On this side of the Tasman, Viagogo made two key concessions to the Commerce Commission in March, conceding it fell under New Zealand jurisdiction and agreeing to make several changes to its website.

In return, the regulator dropped its bid for an interim injunction.

However, the Commerce Commission continues to push for a full hearing.

The consumer watchdog still wants its day in court to seek justice for some 1198 people who complained to it before the website changes were made.

The Commerce Commission alleged in a statement of claim filed in November 2018 that Viagogo had made misleading statements about ticket scarcity, was not upfront about substantial fees, and that it made guarantees about the validity of tickets it was unable to enforce.

In February last year, the Commerce Commission’s bid for an interim injunction hearing was thrown out on a technicality as Viagogo said it had not been properly served. The Swissincorporated company at the time argued it should be served in its home country.

The commission won an appeal in October, at which point March 6 was set as the date for the interim injunction hearing. A date for the full hearing has yet to be set. — The New Zealand Herald