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Viagogo to be forced to tell ticket buyers identity of touts Viagogo to be forced to tell ticket buyers identity of touts
(35 minutes later)
The competition regulator has scored a landmark legal victory over Viagogo, securing a court order that will force the tickets website to give consumers more information, including the identity of touts advertising tickets. The competition regulator has scored a landmark legal victory over Viagogo, securing a court order that will force the tickets website to give consumers more information about what they are buying, including the identity of touts advertising tickets.
The Competition and Markets Authority applied for an interim enforcement order in the high court that compels Viagogo to change its business practices until the conclusion of a forthcoming legal battle. The Competition and Markets Authority initially applied for an interim enforcement order in the high court that compels Viagogo to change its business practices until the conclusion of a forthcoming legal battle.
But after late-night talks, Viagogo agreed to make the changes on a permanent basis. But after late-night talks on the eve of a courtroom battle, Viagogo agreed to make what the CMA called a “comprehensive overhaul” of its UK website on a permanent basis, starting from 17 January.
The case marks the first time Viagogo has appeared in court in the UK over practices in its ticket resale business, which the CMA says is breaching consumer law. Under the court order, Viagogo will have to publish more information to buyers, including whether they could be turned away at the door due to restrictions on resale imposed by promoters.
Under the enforcement order, Viagogo will have to publish more information to consumers, including the identity of the person selling the tickets and whether they are trading tickets as a business, rather than a fan who can no longer attend a show. Ticket listings will also have to include the identity of the person selling the tickets and whether they are a professional tout, rather than a fan who can no longer attend a show and wants to recoup the face value of the ticket.
A trader will be defined as someone who sells more than 100 tickets a year.A trader will be defined as someone who sells more than 100 tickets a year.
Critics of the company’s practices say sellers are frequently touts who have harvested tickets in bulk at the expense of genuine consumers, in order to exploit high demand by charging huge mark-ups to fans.Critics of the company’s practices say sellers are frequently touts who have harvested tickets in bulk at the expense of genuine consumers, in order to exploit high demand by charging huge mark-ups to fans.
It will undertake to ensure the accuracy of information about the number of tickets left for any show, which critics say is used to pressure fans into making a purchase.
Viagogo, based in Geneva, will also have to check whether there are any restrictions by concert promoters, such as a ban on resale, before setting up a page advertising seats at an event.
It will have to publish information that the CMA says it has not previously released, such as the face value of tickets and the seat number, so that fans know exactly what they are buying.It will have to publish information that the CMA says it has not previously released, such as the face value of tickets and the seat number, so that fans know exactly what they are buying.
The court order also prevents Viagogo from giving misleading information about the number of tickets left for a show, to prevent fans being pressured into making a purchase by the suggestion that there are fewer seats left than there really are.
Viagogo, based in Geneva, will also have to check whether there are any restrictions by concert promoters, such as a ban on resale, before setting up a page advertising seats at an event.
The order also includes restrictions on “speculative selling”, where tickets are advertised that do not yet exist, potentially by professional touts who know they are likely to be able to procure tickets.The order also includes restrictions on “speculative selling”, where tickets are advertised that do not yet exist, potentially by professional touts who know they are likely to be able to procure tickets.
Finally, it will be forced to strengthen its consumer guarantees and improve its complaints handling process.Finally, it will be forced to strengthen its consumer guarantees and improve its complaints handling process.
The CMA chief executive, Andrea Coscelli, said: “We have been clear throughout our investigation that people who use these resale websites must know key facts before parting with their hard-earned money, including what seat they will get and whether there is a risk they might not actually get into the event at all.
“Viagogo has agreed to a comprehensive overhaul of its site to ensure it respects the law, just like the other resale sites who have already signed commitments to improve the information they offer and give people a fair deal.”
Viagogo said: “We are pleased that we have been able to work closely with the CMA to come to an agreement that provides even greater transparency to consumers.”Viagogo said: “We are pleased that we have been able to work closely with the CMA to come to an agreement that provides even greater transparency to consumers.”
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