Category: Secondary Ticketing News

Viagogo To Compensate 800+ Consumers Following Legal Battle With FRC

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Viagogo has reached a settlement with the Fédération Romande des Consommateurs (FRC), Switzerland’s largest consumer protection organisation. 

The secondary ticketing marketplace, whose European headquarters are in Switzerland, has allocated 100,000 CHF (roughly €105,000 or £90,000) as compensation for the 807 individuals who have lodged complaints against Viagogo with the FRC prior to 5 February, 2024.

Viagogo has also agreed to make changes to its Swiss website (viagogo.ch). These are as follows: 

  1. Indicating the platform’s status as a resale marketplace in Switzerland’s three national languages and English, so that consumers are not led to believe they are buying from an official seller. 
  2. Greater transparency over ticket prices and seating information, with the total cost and seating information clearly shown throughout the buying process. 
  3. A reduced number of “pop-up” windows, to limit the pressure put on consumers to make a purchase. 
  4. Clearly identifying professional resellers or traders, so that buyers do not falsely believe that they are buying from another consumer. 

The FRC first lodged a criminal complaint against Viagogo with the Geneva public prosecutor’s office in 2017 after receiving over 100 complaints against the site. These related to lack of transparency over pricing, pressure-selling tactics, and leading consumers to believe that they are buying from an official ticket seller. 

In return for these changes, the FRC has withdrawn its lawsuit. However, should Viagogo fail to meet any of the above commitments, the FRC will be free to make another legal complaint.  

Jean Tschopp, head of the FRC’s legal department said “In our view, this agreement was the best option faced to a procedure that was getting bogged down and would certainly have taken many more years before a final decision was reached. Our association preferred concrete improvements for internet users in the form of changes brought to Viagogo’s Swiss website instead of waiting several more years for a final decision”.

Commenting on the news, FEAT director Sam Shemtob said: “While great news, the settlement – made after six years of legal work – highlights the difficulty of hauling uncapped ticket resale sites through the courts. For consumers in the EU, we hope and expect the new Digital Services Act, which requires online marketplaces to improve transparency and desist from pressure buying tactics, will be robustly enforced.”

You can read more about the legal case on the FRC’s website here. 

There have been over 40 legal cases against ticket traders and resale platforms in the EU since 2016.

Viagogo fined €23.5M by Italian Regulator for breaking secondary ticketing rules

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Italy’s Communications Regulatory Authority AGCOM has fined viagogo €23.5M for breaking the country’s rules on secondary ticketing and has given it seven days to remove the illegal listings from its site.

The decision, taken at an AGCOM Council meeting on 23 June 2022, followed an investigation by Italy’s financial crime enforcement agency, the Guardia di Finanza. This found that viagogo had listed tickets for 131 events at prices up to six or seven times above their face-value. Events included concerts for artists such as Maneskin, Vasco Rossi, Sting, Green Day, Dua Lipa, Pearl Jam, Placebo, Cesare Cremonini, Paolo Conte and Andrea Bocelli.

An amendment to Italian legislation was introduced to Italy’s 2017 budget law to criminalise ticket touting (art. 1, paragraph 545, of the law 11 December 2016, n. 232).  Subsumed into Italy’s Secondary Ticketing Act in March 2018, the law, to be enforced by AGCOM, prevents tickets being sold for commercial purposes or for above face value. 

AGCOM’s ruling is available here.

Said FEAT director Sam Shemtob, “This is a substantial fine for viagogo, and a clear requirement to remove illegal listings within seven days. What is especially encouraging is the extensive investigation carried out by Italy’s financial crime enforcement agency working closely with the Italian regulator AGCOM. Legislation across Europe – at both a national and EU basis –  is catching up with ticket scalping. If other enforcement authorities follow Italy’s example, the hope of a functional ticket resale market, with scalping largely relegated to the history books, could become a reality”

MEPs to Debate New Rules to Build a Safer Internet

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Over the next couple of days the European Parliament will debate and vote on new rules as part of the upcoming Digital Services Act to create a safer and more transparent space for online users.

The new rules have the potential to significantly impact the ticket resale market which has long been plagued by online marketplaces that exploit consumers by providing misleading information and hosting illegal or invalid tickets to turn huge profits.

While the proposals put forward by the Committee on Internal Market and Consumer Protection (IMCO) are a big step in the right direction to improve transparency and accountability online, there are currently significant loopholes that could compromise the effectiveness of the Digital Services Act.

As such, FEAT urges MEPs to consider voting for the following amendments:

👉 Amendments 484, 515 and 548: Safeguarding fans against the reappearance of illegal products — a stay down provision is essential to ensure illegal products such as tickets do not reappear on marketplaces. In the case of illicit ticket resale, a simple keyword search would allow the marketplaces to identify illegally listed tickets for one event.

👉 Amendment 550: Making sure that due diligence requirements apply to all except micro businesses — ticket resale marketplaces come in all sizes and we see consumer abuses at all levels. It is therefore highly problematic that smaller enterprises would be exempt from basic due diligence requirements outlined in Chapter 3, leaving consumers vulnerable and companies open to exploit the rules.

👉 Amendment 512: Requiring marketplaces to verify information as to the identity of the seller through measures such as ID or bank document checks — ticket scalpers regularly use fake identities in order to sell fake or invalid tickets. A simple step such as an ID check is easy to implement and would have a significant impact on the number of fraudulent sellers listing tickets online.

FEAT Calls For Digital Services Act To Hold Marketplaces Accountable for Illegal Ticket Sales Online

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FEAT has co-signed a letter calling for the European Parliament to strengthen proposed rules on online platforms to better protect consumers as part of the upcoming Digital Services Act. Signatories include 22 other consumer and business associations. 

The letter argues that the DSA in its current format is inadequate in protecting consumers and legitimate businesses from the trade of illegal goods and services, including counterfeit and fraudulent tickets, and fails to understand the reality of online commerce. It urges the body to “avoid adopting a framework that presents significant risks for both consumer protection and businesses’ viability and reputation”. 

As it stands, the Digital Services Act looks set to offer an exemption for small and medium enterprises (SMEs) from certain due diligence obligations. In practice, this would merely encourage illegal traders to evade detection by moving to smaller platforms. While a waiver should still exist for micro-enterprises, the vast majority of Europe’s SMEs are still offline businesses, which have long been expected to meet their own set of diligence requirements. 

In addition, the proposals ignore the vast and complex reality of online commerce by failing to hold all platforms that facilitate sales between traders and consumers to account. Limiting the scope of obligations such as the Know Your Business Customer obligation to marketplaces means that there will be limited accountability for selling on alternative platforms such as social media. This must be corrected by widening the scope of the forthcoming rules and increasing clarity about platform obligations and consequences. 

The DSA as it currently stands is unsatisfactory. By making further adjustments, the Act can help consumers and small businesses trade online in a safe market no longer saturated with illegal trade. 

You can read the full statement here.  

Italian court upholds €3.7m viagogo fine for ticket touting, rules it is not a “passive hosting provider”

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An Italian court has rejected an appeal from viagogo against a €3,700,000 fine for hosting tickets sold in contravention of Italian law.

The judgment, which was handed down by the Regional Administrative Court of Lazio earlier this month, upholds a 2020 ruling brought by Italian Communications Regulatory Authority AGCOM sanctioning viagogo for listing tickets to 37 events at above face value between March and July 2019.

Italy’s 2017 Budget law states that tickets for entertainment events must only be sold by authorised ticket providers in Italy. However, consumers are permitted to sell unwanted tickets for a price equal to or less than the ticket’s face value.

The judges rejected viagogo’s argument that it was acting as a “passive hosting provider” by merely connecting resellers with potential buyers, which would exempt the resale platform from liability under Italian law implementing the E-Commerce Directive. Instead, viagogo was found to provide a range of services and promote and advertise tickets in a way that could not be considered to be carried out without any awareness or control on its part.

The Court pointed out that “The service provided by the viagogo… clearly does not have the characteristics of passive hosting, given that it clearly does not consist in the mere “storage of information”, but rather in the articulated activities of optimisation and advertising promotion of the titles on sale…. Nor has the appellant in any way substantiated the claim that such complex activities would be carried out by the platform in a completely automatic manner and without any awareness and/or possibility of control on its part”.

In a final dig, the court added that even if viagogo had qualified as a “passive hosting provider,” it would still not have benefited from the liability exemption afforded by the law as it did not act quickly to remove or disable access to the listings once notified by the competent authorities.

This important ruling is another step towards greater accountability of secondary ticketing platforms, which routinely profit from illegal ticket sales. It builds on consistent rulings against liability exemption as a passive hosting provider – from both the Italian Supreme Court (n. 7708 March 19, 2019. Mediaset vs Yahoo!) and European Court (C-324/09, L’Orèal v. eBay and C-236/08, Google v. Louis Vuitton). It comes as European legislators look at tightening the rules around platform liability, with particular regard to marketplaces — including the likes of viagogo.

FEAT Director Sam Shemtob said: “Uncapped secondary marketplaces such as viagogo have long been shielding under the liability exemption offered by EU law by claiming to have little to no knowledge of the activity taking place on their sites. It is time that they’re held responsible for the illegal activity they promote and profit from, both in Italy and across Europe”.

Austrian Supreme Court Rules 42 of Viagogo’s T&C Clauses Illegal

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In the first ruling of its scale into Viagogo’s T&Cs, Austria’s Supreme Court (OGH) has ruled 42 separate clauses of the company’s general terms to ticket buyers and sellers illegal.

Viagogo will now have to amend all 42 clauses for Austrian consumers accessing the website via www.viagogo.com and www.viagogo.at.

Notable clauses that were deemed unlawful include:

  • No refund if lost: A clause stipulating that all sales are final so the buyer has no right to a refund or exchange if the ticket is lost, or the terms of the ticket sale are only partially fulfilled, e.g., if there is a date or time change.
  • Wide discretion on replacement tickets: A clause stipulating that if the seller does not deliver the tickets, Viagogo may, at its own discretion, decide whether to offer replacement tickets or refund the buyer.
  • Seat changes: A clause allowing the seller to change the seat to which the listing refers for a comparable seat without the buyer’s consent.
  • Refund for non-delivery: If tickets are not delivered to the buyer and returned to Viagogo more than three times, the buyer forgoes their right to a refund, regardless of whether they were at fault or not.
  • Liability disclaimers: A number of clauses purporting to exclude or limit Viagogo’s liability, such as for its own website and services.
  • Applicable law: A clause stating that Swiss law applies to contracts entered into on the Austrian site was illegal as consumers are protected under Austrian consumer law and have the right to sue the reseller before an Austrian court.

This is the second notable ruling in Austria in the past year. Last year, the OGH ordered Viagogo to better inform its buyers about the identity of ticket sellers and the type of ticket being sold by a seller before a purchase is made.

FEAT Campaign Lead Katie O’Leary added: “For a platform that claims to serve fans, the level of protection that Viagogo offers its users, as brought to light in this ruling, is shocking. We welcome the OGH’s decision and hope that it encourages other jurisdictions to ensure that their consumers are equally protected.”

Austrian Supreme Court rules against Viagogo, forcing transparency on ticketing platforms

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Austria’s Supreme Court (OGH) has ordered Viagogo to better inform its buyers about the identity of ticket sellers and the type of ticket being sold by a seller before a purchase is made.

The ruling forces viagogo.at and any other Viagogo or similar websites affecting Austria to disclose the identity of ticket sellers, including name and address, and whether tickets are personalised, ahead of ticket purchase.

The verdict also means that for the first time, customers in Austria are protected from losses caused by misleading information or the absence of essential information by sellers, such as travel costs when access to the show is denied.

Furthermore, if Viagogo doesn’t ensure sellers’ compliance with the registration and the disclosure of their identities, the platforms themselves would be held accountable.

Until now, tickets on secondary platforms operating in Austria were sold anonymously, with buyers not informed when tickets were personalised, leading to them often being denied access to events.

The case against Viagogo was brought by the trade body for sports and leisure companies of the Upper Austrian Chamber of Commerce through the competition protection association, WSV. The basis for the lawsuit was the significantly inflated prices for tickets sold on Viagogo for cabaret events by Monika Gruber and Viktor Gernot, organised by Austrian events agency, Stage. The legal representation was taken over by the Linz-based competition law expert Dr. Johannes Hintermayr.

The Face-value European Alliance for Ticketing said: “The verdict is a remarkable step towards a fairer secondary market in Austria, as it not only forces ticketing transparency, but places responsibility at the feet of the platforms themselves. Congratulations to Dr. Hintermayr and the WVO who have led this extraordinary fight, and let it be one step of many towards the creation of an ethical market, which is all the more important in getting the industry back on its feet post-COVID-19.”

VIAGOGO ANNOUNCES DEAL TO BUY STUBHUB

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Today, Viagogo has announced a $4.05 billion deal to buy StubHub, which it claims will be ‘a win-win for fans — more choice and better pricing,’ according to a statement released on the company’s Twitter account. 
 

StubHub’s current owner, eBay, is selling the company back to its original co-founder, Eric Baker, who is also the founder and CEO of Viagogo. The sale is expected to close by the first quarter of 2020, but is still subject to regulatory approval. 
 

Katie O’Leary, FEAT’s Campaign Lead said:

“It’s alarming to think of Viagogo potentially gaining an even greater stronghold in the secondary ticketing market given it’s been the subject of various legal actions across Europe and banned from advertising on Google globally.
 

“Viagogo claim this will create a ‘win-win for fans’, but further consolidation in the secondary ticketing market would most likely restrict competition, and further negatively impact fans.   
 

“We hope that regulators will have consumers’ best interests at heart when considering this deal, and consider not only the question of Viagogo’s increased dominance but also whether they can be considered a fit and proper owner.”

JAPANESE PROMOTERS’ ASSOCIATION ACPC ISSUES ANTI-TOUTING STATEMENT

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Japanese promoters’ association, the All Japan Concert and Live Entertainment Promoters Conference (ACPC) has issued a statement outlining their stance on touting, commenting that: “Ticket touting will not disappear tomorrow. From better education for consumers to strong enforcement, we will tackle the issue from all angles to help establish a fair ticketing system that truly puts fans first.”

The statement describes the secondary ticketing market as one of the events promotion industry’s most pressing issues and calls for a holistic approach to achieve “a healthy ticketing system worldwide.”

This follows the introduction of new anti-touting legislation in Japan last December, which bans ticket touting online and outside venues for events where the promoter has prohibited resale, as well as banning touts from buying tickets with the purpose of reselling them. Breaking this law is punishable with a fine of up to ¥1 million or one year in prison, or both. This is particularly timely given upcoming major sporting events in Japan: the Rugby World Cup starts in September 2019 and the Olympics begins in July 2020. 

ACPC chair Takeo Nakanishi commented that he commends the work that FEAT is doing “to encourage better legislation in Europe”.

FEAT director Sam Shemtob commented that the alliance “support[s] the ACPC in their work towards preventing ticket touting in Japan at this pivotal time, and are delighted by the impact new anti-touting legislation will no doubt have.“We are confident that, as the live events industry and governments work together, a fairer ticket resale market can be achieved globally.”

CHAMPIONS LEAGUE TICKETS DO NOT EXIST, PURCHASERS TOLD

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The companies contacted fans less than a week before the match to inform them that their ticket purchases would not be fulfilled by the sellers, who had sold them speculatively – including fans who had already travelled to Madrid. Whilst StubHub has promised fans a full refund, including shipping and service fees, and Viagogo has promised either alternative tickets or €500 compensation, many customers will still be left out of pocket – not least because of the inflated cost of travel and accommodation in Madrid.

Viagogo and StubHub have informed hundreds of buyers of secondary tickets for the Champions League final in Madrid that their tickets – some of which cost upwards of £10,000 – were sold speculatively and do not in fact exist.

StubHub has also offered €1,500 in compensation for each ticket purchased, but it is understood that if fans accept this offer, they will not be able to sue. This year’s Champions League final has seen extraordinarily high levels of ticket touting, according to the Times. Over 8,000 tickets have appeared on secondary ticketing sites with prices far higher than face value, due to extremely high demand.

The scandal has gained coverage from media outlets across Europe, with fans expressing their outrage at such blatant disregard for consumer protection.

Whilst the European Union has recently taken an unprecedented step forward in tackling ticket profiteering – by outlawing the use of bots to bulk-buy tickets as part of the New Deal for Consumers – this latest news demonstrates the continued need for tougher legislation, stronger enforcement and greater consumer awareness in the fight against touts.

UK GOVERNMENT REPORT WARNS CONSUMERS NOT TO BUY FROM VIAGOGO

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In a new report, the UK’s Department for Digital, Culture, Media and Sport has warned consumers to avoid the secondary ticketing platform Viagogo until it ‘fully complies with consumer law.’

Back in November 2018, the company received a court order demanding that they provide full information about tickets listed on their website, including listing seat numbers. Since then, they have refused to give evidence before the DCMS committee, and are currently facing further legal action from the Competition and Markets Authority.

The report’s key findings include:

  • Ticket resale for profit drains money out of the music industry – and loses tax revenue for the government
  • Enforcement of secondary ticketing legislation has seen some successes: StubHub, for example, is now in compliance with CMA and ASA rulings. However, Viagogo is still not compliant
  • The issue of bot attacks on ticketing sites is rife: Ticketmaster has blocked 20 billion bot attacks across its global platforms in 2017, but current regulations may not address the actual means by which touts harvest tickets. Touts also use multiple computers which are much harder to detect
  • It is time for companies such as Google to take more responsibility in enforcing AdWords regulations, so that secondary sites are not able to breach these policies when selling fraudulent tickets. The report urges the government to define the responsibilities of media companies such as Google, and enforce sanctions

Michael Dugher, CEO of UK Music, commented:

“They have really listened to the live music industry, which contributes around £1bn a year to the UK economy, and their report is a real wake-up call for everyone who wants to safeguard live music.”

Adam Webb, campaign manager at FanFair Alliance, commented:
“

“If a restaurant poses a risk to public health, we expect inspectors to close it immediately on grounds of consumer protection.

“Unfortunately, such powers of enforcement are seemingly absent when it comes to online ticket touting. So despite the huge consumer harm caused by Viagogo’s practices, and despite the best efforts of the Competition & Markets Authority and other regulators, the site has continued to operate in clear disregard of the law.

“This needs to change. Viagogo is already facing legal proceedings for contempt of court. While that case is pending, there is surely a compelling argument for the website to be temporarily blocked and for platforms like Google to cut off its advertising.”

Click here to read the report in full.

Danish #billetblind campaign launched to educate consumers about illegal ticketing

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The Danish Ministry of Culture has joined forces with the country’s top ticket providers, festivals, venues and consumer organisations to raise consumer awareness of illegal ticketing practises.

The social media campaign, which uses the hashtag #billetblind, aims to teach consumers the difference between official and illegal tickets vendors and how to avoid being sold fake tickets. It also aims to curb illegal resale.

Though legislation already outlaws the overpricing or forging of tickets, many consumers are still being misled into buying invalid tickets.

Launching on 5 April, consumers will be able to follow the hashtag #billetblind to learn more about how to protect themselves when buying tickets.

The campaign has been developed specifically for social media, and will use ticket advice, videos and surveys, to help live music fans understand illegal ticket sales and guide them to official ticket providers.

Minister for Culture Mette Bock commented:


“Few citizens can figure out the tricks and cheats of illegal ticket vendors, and many end up being cheated or paying much more for their tickets.
It does not benefit the talented artists or the music and cultural industry as a whole. 
It is very positive that so many parties have now joined forces to help consumers on the road. ”

For more information, see the Ministry of Culture website.

Germany’s BDKV secures judgement against Ticketbande

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The regional court of Hanover has ordered German secondary ticketing site Ticketbande to restrict the resale of tickets on its site.

Under these restrictions, there are two scenarios in which Ticketbande may not list tickets. Firstly, if a seller marks up a ticket to 25% above face value when the terms of the original ticket contain a specific clause agreed with the courts that forbid this.

Secondly, when tickets have a box for the buyer’s name. This means that they are named tickets and non-transferable (providing there is a way for that named person to get a refund if they cannot attend a show).

The court order against Ticketbande was sought by the German promoter’s association BDKV. Dr Johannes Ulbricht of law firm Michow & Ulbricht, who represents BDKV, said:

“This verdict finally eliminates a crucial grey area in ticket sales [and brings event organisers] a great step further in the fight against the commercial secondary market ticketing trade”.

FEAT’s director, Sam Shemtob, commented:

“This illustrates the traction that a variety of national movements, such as BDKV’s [anti-touting campaign] are getting across Europe, and shows that local judiciaries are not falling for spurious arguments in support of industrial level touting”.

For further information, see the CMU report.

French Constitutional Council Rejects Appeal By Viagogo and Ticketbis

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The French Constitutional Council has rejected an attempt by Viagogo and Ticketbis to contest a law that criminalises the resale of tickets for events without the authorisation of the promoter.

Currently, touts are liable to pay fines of up to €30,000 for touting at events that they have not received permission from the event organiser or rightsholder to sell tickets.

The Council commented: “by introducing the contested provisions, the legislature has, on the one hand, intended to prevent disturbances to public order in certain events, particularly sporting events“.

“Indeed, the implementation of certain security measures, such as the administrative or judicial prohibitions of access to these events or the control of the placement of the audience, which rely on the identification of persons purchasing these titles, may be hampered by the resale of access rights“.

The Council also maintained that it wanted to guarantee that consumers had access to sporting, music and cultural events.

The decision has been welcomed by France’s live music association Prodiss, several other live music organisations, and the French Prime Minister.

Malika Séguineau, Director of French Live Music Association at Prodiss, commented: “This decision strongly reinforces the French law. The law protects the consumers, the fans, the artists and the promoters, against the drifts engendered by the illicit resale of tickets. We welcome today’s decision, especially as Prodiss, alongside several promoters, have parallelly filed a criminal action against Viagogo. The judge is soon to be appointed. Our legal actions go alongside our campaign www.fanpasgogo.fr”

The move has been supported by the French Prime Minister and several major sport and live music organisations, including: Association Nationale des Ligues de Sport Professionnel (ANLSP), the Fédération Française de Rugby (FFR), the Fédération Française de Tennis (FFT), the Fédération Internationale de Football Association (FIFA), GIP France2023 , the Ligue Nationale de Rugby (LNR), Première Ligue, Société des Auteurs, Compositeurs et Editeurs de Musique (SACEM), Syndicat national du spectacle musical et de variété (Prodiss), and Union of European Football Associations (UEFA).

Swiss Consumer Organisation Launches ‘Ticket Check’ Campaign

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The consumer organisation Fédération romande des consommateurs (FRC, The Consumer Federation for French-speaking Switzerland) has launched a campaign to fight ticket touting and raise awareness of official ticket sellers among consumers.

Entitled ‘Ticket Check’ the programme aims to help consumers identify official ticket sale and resale points. A logo has been created to help identify the official platforms.

The FRC claims to receive daily complaints from people who feel they were cheated when they bought tickets online. The campaign recommends that consumers should not use the first ticket-selling website that they see at the top of search results when using Google or Bing. In most cases these websites are unauthorised platforms that are not official event partners.

Supporters of the campaign include UEFA, SMPA, Opus One, SecuTix among others.

More information can be found via the FRC website.

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