ACCC takes action against ticket reseller

The Australian Competition and Consumer Commission (ACCC) has commenced proceedings in the Federal Court against ticket reseller, viagogo AG (Viagogo), alleging it breached the Australian Consumer Law (ACL) in the resale of tickets for entertainment, music and live sport in May and June of 2017.

The ACCC alleges, by failing to disclose substantial unavoidable fees in upfront ticket prices, Viagogo made false or misleading representations, and engaged in misleading and deceptive conduct. For example, the ACCC noted the advertised price of $450 for two tickets to a Cat Stevens concert was increased to $579 (29% increase) when the mandatory booking and handling fees were later included.

The ACCC also alleges Viagogo misled consumers by representing on its website that tickets to certain events were scarce and likely to run out quickly, without disclosing this ‘scarcity’ only referred to tickets available through its own website.

Further, the ACCC has taken exception to Viagogo’s use of the word ‘official’ in its online advertisements, alleging it has falsely represented that consumers could purchase official original tickets through Viagogo, when in reality Viagogo only provides a platform for tickets being on-sold by others.

The ACCC’s action against Viagogo serves as a timely reminder for traders to consider whether their own practices are sufficiently transparent to ensure compliance with the ACL. The ACCC continues to pursue alleged ACL contraventions as an enforcement priority, and is currently very active in commencing litigation.

At Macpherson Kelley, we regularly advise our clients on issues of ACL compliance. If you would like further information, please contact us.