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Viagogo snubs MPs' inquiry into online ticket reselling Viagogo snubs MPs' inquiry into online ticket reselling
(about 9 hours later)
The controversial ticket resale website Viagogo has refused to show up to a select committee hearing, in an apparently unprecedented move likely to anger MPs considering a crackdown on the secondary ticketing industry. Controversial ticket resale website Viagogo was accused of “naked mis-selling and fraud”, as it delivered an almost unprecedented snub to MPs by failing to show up for a select committee hearing.
Despite an advance request to appear before the department for culture, media and sport (DCMS) committee, Viagogo refused to send an executive to answer MPs’ questions as part of an inquiry into ticket abuse. MPs on the department for culture, media and sport committee heard allegations from music industry figures and fans about Viagogo, which allows touts to advertise tickets for huge mark-ups even before they go on sale, in return for a cut of up to 25% of the selling price.
Committee chair Damian Collins MP said it was a “considerable disappointment that Viagogo have decided not to send a representative despite the fact that they have a substantial office on Cannon Street [in central London]”. Internet giant Google, already under fire for placing adverts next to extremist content, now looks likely to be dragged into the inquiry, after it was accused of “colluding” with Viagogo by advertising the reseller at the top of search results.
It is extremely rare for company executives to refuse to appear at a select committee inquiry. It is understood Viagogo told MPs by email on monday night that they would not be attending. MPs were told that all four major ticket resale sites – Viagogo, StubHub, GetMeIn and Seatwave – are routinely flouting laws designed to protect consumers.
Irene Rosenfeld, then boss of food group Kraft, provoked fury when she twice ignored an invitation to face MPs over the US company’s controversial £12bn takeover of Cadbury’s. But unlike Viagogo, Kraft did at least send three middle-ranking executives to face politicians’ questions. But MPs and witnesses reserved their sharpest barbs for Viagogo, which was summoned to give evidence after revelations about the company in The Guardian.
Nigel Huddleston MP, a member of the DCMS committee, said Viagogo had shown “if not contempt for parliament, a lack of respect to parliament and by extension the British public”. Committee chair Damian Collins MP said Viagogo’s absence showed “contempt for parliament”, while Nigel Huddleston MP accused the company of a “lack of respect [...] for the British public.”
MPs have since discussed making it a criminal offence to decline to attend and even the Sports Direct boss Mike Ashley was eventually persuaded to attend a committee hearing earlier this year, after initially resisting. Among Viagogo’s written excuses for not attending, MPs said, was a claim that the company does not sell tickets, and only allows others to do so.
Viagogo’s refusal saw the company “empty-chaired”, a symbolic gesture where a space and namecard is reserved for a representative in the committee room, to highlight the absentee’s decision not to attend. The Switzerland-based company also said it did not have “adequate representation” in the UK, even though it has a large office on London’s Cannon Street.
The Switzerland-based company, which also has offices in London, was summoned to give evidence after revelations in the Guardian about the company’s behaviour. It is extremely rare for company executives to refuse to appear at a select committee inquiry.
It was accused of “moral repugnance” for reselling tickets to an Ed Sheeran gig in aid of the Teenage Cancer Trust. It has also been criticised by a fans’ group that claims the company withheld thousands of pounds in refunds after overcharging customers due to what it called a “glitch”. Irene Rosenfeld, then boss of food group Kraft, provoked fury when she twice ignored an invitation to face MPs over the US company’s controversial £12bn takeover of Cadbury’s.
The company has become a focal point for mounting criticism of ticket resales, which came to a head earlier this month when DCMS announced plans for legislation to curb the power of secondary ticket firms and touts, who use them to make vast profits. But unlike Viagogo, Kraft did at least send three middle-ranking executives to face politicians’ questions.
Viagogo has also been accused of trying to manipulate online reviews of its services, as it wrestled with negative publicity due to the revelations. In Viagogo’s absence, the company was accused of “naked mis-selling and fraud” by John Nicolson MP. He accused the company was “lying to the public”.
Viagogo did not respond to a request for comment. Huddleston said the evidence suggested Viagogo’s business was “smelling of exploitation and deception at every level”.
Nigel Adams MP said Viagogo “makes Stan Flashman look like Mother Teresa”. Flashman was a renowned tout who claimed he could even get tickets for the Queen’s Garden Parties.
The committee heard that fans who buy from Viagogo, sometimes for thousands of pounds, are being turned away from venues and events that ban resale.
Keith Kenny, tickets director for hip-hop musical Hamilton, told the committee he had written to Viagogo executive Ed Parkinson urging him not to resell tickets, but received no response.
Tickets for Hamilton appeared on Viagogo for more than £2500 moments after going on sale and are now changing hands for even more.
Nigel Adams MP said: “Taking thousands of pounds off people, knowing they are not going to be able to get in, is effectively selling a product that never existed.”
Google was also accused of “colluding” with Viagogo, because the company usually appears at the top of search results for major events.
The company is understood to be reviewing the situation.
“We have a set of strict policies which govern what ads we do and do not allow on Google,” said a spokesperson.
“We do not allow fraudulent or misrepresentative ads, and when we discover ads that break our policies, we quickly take action.”
Stuart Galbraith, who promotes artists including Ed Sheeran, said this is because Viagogo pays to appear at the top of the Google’s paid-for sponsored rankings. “I can pay 50p per click, they can pay £10,” he said.
Google did not return a request for comment.
Galbraith and Stuart Camp, Ed Sheeran’s manager, said all four major ticket resale sites routinely breach the Consumer Rights Act 2015, which says resold tickets must show data such as face value and the ticket’s exact location.
Galbraith said the companies omit this information because it would allow promoters and venues to cancel resold tickets.
The Competition and Markets Authority is icurrently investigating whether companies are complying with the legislation.
And the House of Lords was on Tuesday evening due to debate plans that include outlawing “bots” - the automated software used by some touts to harvest tickets in bulk.
One witness, SeeTickets boss Rob Wilmshurst, told MPs that bots were a “red herring” because touts have many ways to get hold of tickets.
Asked if he would instead support a cap on the price of resold tickets, for example at face value plus 10%, Galbraith said: “We would be happy with that”.
The committee also heard from Claire Turnham, who started a Victim of Viagogo campaign group after she and dozens of other fans were overcharged due to what the company said was a “glitch”.
She said Viagogo did not make its prices clear, with hundreds of pounds in booking fees applied at the last minute.
Turnham also pointed to messages on the website telling customers that they are running out of time to buy tickets and must hurry up or face disappointment.
Huddleston , who used to work for Google, said Viagogo was “one of the most psychologically manipulative websites i’ve ever seen”.
Viagogo declined to comment.
MPs summoned Viagogo after revelations in The Guardian, including that it resold tickets for an Ed Sheeran gig in aid of the Teenage Cancer Trust.
It was also accused of trying to manipulate online reviews of its service in the light of negative publicity.
The Guardian has previously revealed the names of some of the UK’s most powerful ticket touts, who use sites including Viagogo to make vast profits.
ENDS