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Viagogo faces investigation as minister urges boycott Viagogo faces investigation as minister urges boycott
(about 2 months later)
National Trading Standards has opened an investigation into the ticket website Viagogo for persistently misleading consumers, hours after the digital minister, Margot James, urged consumers to boycott the company.National Trading Standards has opened an investigation into the ticket website Viagogo for persistently misleading consumers, hours after the digital minister, Margot James, urged consumers to boycott the company.
In a rare move by a government minister to single out a particular company for its behaviour, James advised anyone planning to buy tickets on resale websites: “Don’t choose Viagogo – they are the worst.”In a rare move by a government minister to single out a particular company for its behaviour, James advised anyone planning to buy tickets on resale websites: “Don’t choose Viagogo – they are the worst.”
Her warning came as the Advertising Standards Authority referred the controversial company to National Trading Standards, citing a series of transgressions breaching the UK’s advertising code.Her warning came as the Advertising Standards Authority referred the controversial company to National Trading Standards, citing a series of transgressions breaching the UK’s advertising code.
Viagogo: what is it and why is it so controversial?Viagogo: what is it and why is it so controversial?
The ASA accused Viagogo of misleading consumers by failing to be transparent about extra fees added to the ticket prices it displays online, despite previous warnings from the regulator.The ASA accused Viagogo of misleading consumers by failing to be transparent about extra fees added to the ticket prices it displays online, despite previous warnings from the regulator.
It also hit out at the firm’s use of the phrase “official site”, which it said led consumers to believe Viagogo was an authorised primary ticket agent rather than a resale site.It also hit out at the firm’s use of the phrase “official site”, which it said led consumers to believe Viagogo was an authorised primary ticket agent rather than a resale site.
The ASA also said Viagogo should not promise a “100% guarantee” to consumers, pointing to the fact that some artists, such as Ed Sheeran, turn away buyers at the door if they have bought from Viagogo.The ASA also said Viagogo should not promise a “100% guarantee” to consumers, pointing to the fact that some artists, such as Ed Sheeran, turn away buyers at the door if they have bought from Viagogo.
The ASA chief executive, Guy Parker, said: “Viagogo was given clear warning and handed the opportunity to play fair with consumers by removing misleading pricing information from its website; its failure to do so means it will now face the consequences.The ASA chief executive, Guy Parker, said: “Viagogo was given clear warning and handed the opportunity to play fair with consumers by removing misleading pricing information from its website; its failure to do so means it will now face the consequences.
“Where an advertiser or business is unwilling or unable to follow the advertising rules we will act.“Where an advertiser or business is unwilling or unable to follow the advertising rules we will act.
“In light of Viagogo’s inability to get its house in order, we’re referring it to National Trading Standards to consider appropriate action.”“In light of Viagogo’s inability to get its house in order, we’re referring it to National Trading Standards to consider appropriate action.”
Immediate sanctions imposed by the ASA include a request to the search engines Google and Bing to remove some of the Geneva-based company’s listings.Immediate sanctions imposed by the ASA include a request to the search engines Google and Bing to remove some of the Geneva-based company’s listings.
It has also added Viagogo to a list of non-compliant companies and launched an advertising campaign highlighting its behaviour.It has also added Viagogo to a list of non-compliant companies and launched an advertising campaign highlighting its behaviour.
However, National Trading Standards has far more options available to it, including the power to impose fines and imprison staff.However, National Trading Standards has far more options available to it, including the power to impose fines and imprison staff.
A spokesperson for NTS said it would “look at all legal options to bring them into compliance with the law”.A spokesperson for NTS said it would “look at all legal options to bring them into compliance with the law”.
Viagogo has also been threatened with court action by the Competition and Markets Authority, which is looking into alleged breaches of consumer rights law by the site.Viagogo has also been threatened with court action by the Competition and Markets Authority, which is looking into alleged breaches of consumer rights law by the site.
Increased scrutiny of Viagogo follows a series of high-profile controversies involving the website run by the US multimillionaire Eric Baker, the co-founder of the company’s biggest rival StubHub.Increased scrutiny of Viagogo follows a series of high-profile controversies involving the website run by the US multimillionaire Eric Baker, the co-founder of the company’s biggest rival StubHub.
Secondary ticketing: how it works, law, pitfalls and futureSecondary ticketing: how it works, law, pitfalls and future
The singer-songwriter Ed Sheeran recently cancelled 10,000 tickets for his tour that had been bought through Viagogo.The singer-songwriter Ed Sheeran recently cancelled 10,000 tickets for his tour that had been bought through Viagogo.
Sheeran’s promotion company Kilimanjaro Live, among those to file complaints about the company with the ASA, said Viagogo was the only resale firm not to comply with its request not to resell tickets for the artist’s shows.Sheeran’s promotion company Kilimanjaro Live, among those to file complaints about the company with the ASA, said Viagogo was the only resale firm not to comply with its request not to resell tickets for the artist’s shows.
Earlier this month, the Guardian revealed Viagogo’s involvement in the resale of football tickets in the UK, resulting in fans being overcharged and seated in the wrong end, undermining strict laws on segregation.Earlier this month, the Guardian revealed Viagogo’s involvement in the resale of football tickets in the UK, resulting in fans being overcharged and seated in the wrong end, undermining strict laws on segregation.
The website has also been criticised for withholding refunds from overcharged fans, profiteering from charity events, refusing to attend a select committee hearing and breaching consumer rights laws.The website has also been criticised for withholding refunds from overcharged fans, profiteering from charity events, refusing to attend a select committee hearing and breaching consumer rights laws.
Claire Turnham, who launched a campaign called Victim of Viagogo to secure refunds for the company’s customers, called for decisive action against the company.Claire Turnham, who launched a campaign called Victim of Viagogo to secure refunds for the company’s customers, called for decisive action against the company.
“We’ve had lots of talking and now we need action,” said Turnham, who has helped Viagogo customers reclaim around £300,000 from the company in less than two years.“We’ve had lots of talking and now we need action,” said Turnham, who has helped Viagogo customers reclaim around £300,000 from the company in less than two years.
“It needs to be clear, it needs to be strong and it needs to be swift.“It needs to be clear, it needs to be strong and it needs to be swift.
“If sanctions are imposed through Google, it will stop people being ripped off because people every day are finding themselves in this very sad and unfortunate position.”“If sanctions are imposed through Google, it will stop people being ripped off because people every day are finding themselves in this very sad and unfortunate position.”
The security and ticketing expert Reg Walker said he believed efforts by artists such as Sheeran to battle Viagogo were already hitting the company in the pocket.The security and ticketing expert Reg Walker said he believed efforts by artists such as Sheeran to battle Viagogo were already hitting the company in the pocket.
“From the information we’ve received in the past week, it looks like they’re looking at refunds of around £250,000 for Ed Sheeran shows alone,” he said.“From the information we’ve received in the past week, it looks like they’re looking at refunds of around £250,000 for Ed Sheeran shows alone,” he said.
Viagogo’s early investors include the tennis power couple Andre Agassi and Steffi Graf, Bernard Arnault, the chief executive of the luxury goods group Louis Vuitton Moet Hennessy, the financier Jacob Rothschild, the German media mogul Herbert Kloiber and the London-based investment group Index Ventures.Viagogo’s early investors include the tennis power couple Andre Agassi and Steffi Graf, Bernard Arnault, the chief executive of the luxury goods group Louis Vuitton Moet Hennessy, the financier Jacob Rothschild, the German media mogul Herbert Kloiber and the London-based investment group Index Ventures.
The Guardian has approached the investors for comment.The Guardian has approached the investors for comment.
ViagogoViagogo
Ticket pricesTicket prices
Consumer affairsConsumer affairs
Music industryMusic industry
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