'Quite a shock': Ticket reseller Viagogo misled customers on prices, availability
Live event ticket reseller Viagogo has breached Australian consumer law by misleading the public on ticket prices, availability and the nature of its services.
The Federal Court found Viagogo, which was slammed last year as a "disgraceful and disruptive scam" by ARIA-winning rock band Gang of Youths, had misled customers by not making it clear it was not an authorised ticket vendor and that fees of up to 28 per cent of a ticket price could be applied.
The consumer watchdog launched Federal Court proceedings against the Switzerland-based business in 2017, after receiving 473 complaints in the first half of that year.
The Australian Competition and Consumer Commission (ACCC) alleged Viagogo misleadingly branded itself as an "official site" on sponsored Google ads, and misled consumers on its website by saying tickets were "likely to sell out soon" or in "limited supply" without adequately disclosing that this referred to its website, not the venue as a whole.
The ACCC also alleged Viagogo misled consumers on ticket prices, because a $37.50 fee per ticket would appear only at the end of a booking, meaning the actual price of each ticket would not be properly specified.
Justice Stephen Burley described the fee as a "proportionately large amount" and said Viagogo's Google advertisement drew "consumers into the marketing web by engendering the erroneous belief that the tickets sold were sold by the host".
Viagogo denied that its actions were misleading within the context of Australian consumer law.
Retired economist Bruce McDowell, who gave evidence, said a final price of $581.50 for two tickets to the Australian Open "came as quite a shock", but that words to the effect of "1 per cent left" had made him fearful of missing out so he rushed the booking process.
Midwife Susan Symons paid $1068.70 on Viagogo for five tickets to a Queen and Adam Lambert concert in June 2017, at $213.74 per ticket, despite seeing initial prices advertised at $166.50 each. When she printed the tickets she noticed they were originally issued by Ticketek at $106.95 each.
“Viagogo was charging extraordinarily high booking fees and many consumers were caught out,” ACCC chairman Rod Sims said.
“Today’s Federal Court decision is a reminder to businesses that consumers must be clearly told that there are additional fees associated with a displayed price.”
Australian performing artists including rock band Gang of Youths, musician Tash Sultana and comedian Kitty Flanagan as well as the Melbourne Comedy Festival have previously hit out at the ticket reseller.
Sultana called Viagogo a "bunch of scum bags" who "will try multiply your dollar to desperate fans" while Gang of Youths campaigned to "eradicate this business from Australia".
Despite the introduction of laws in NSW last June prohibiting resellers selling tickets for more than 10 per cent above their original price, Viagogo continued to do so.
The Federal Court will determine penalties and orders against Viagogo at a later date.
“We urge consumers to only buy tickets from authorised sellers, or they risk their tickets being dishonoured at the gates or doors,” Mr Sims said.