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90% of Viagogo tickets in NZ ‘sold by scalpers’

The New Zealand Commerce Commission alleges the resale site misled consumers by claiming to be an “official” seller of “guaranteed” tickets

By James Hanley on 16 Feb 2023


“Scalpers” were responsible for 90% of tickets sold through Viagogo in New Zealand, a court has heard.

The NZ Commerce Commission has gone to Auckland’s High Court, seeking a declaration that Viagogo misled consumers by claiming to be an “official” seller of “guaranteed” tickets to events, including concerts.

Stuff reports it also wants the court to make an order requiring the Swiss-headquartered resale site to make clear to customers that it is not an official ticket seller.

“Viagogo admits that over 90% of tickets that are sold in New Zealand are from scalpers; people selling tickets in commercial quantities,” says Andy Luck, representing the commission. “It’s a website for ticket scalpers to sell to the general public.”

Luck says that Viagogo resold just over 323,000 tickets to event in New Zealand between 18 July 2016 and 31 October 2022, with the court told that 1,300 complaints or communications about the company had been received by the commission.

“Viagogo tells the world it’s a secondary market, and the world knows it”

Viagogo denies misleading consumers or using the word “official” in relation to any event. “Viagogo tells the world it’s a secondary market, and the world knows it,” says Aaron Lloyd, representing the platform.

The case is due to conclude early next month.

The commission previously sought an interim injunction preventing Viagogo making allegedly “misleading” representations back in 2020, but withdrew its claim after the firm made changes to its website.

Last year, an investigation by ITV News, based on research carried out by anti-touting campaign group FanFair Alliance, found that just three people were responsible for over two thirds of UK festival and outdoor event tickets listed by Viagogo. Fewer than 10% of tickets on the site were being sold by ordinary consumers, it added.

In response, Viagogo said it “acted swiftly to remove the relevant listings and have returned several to the site that have clearly demonstrated that they are legitimate and valid”.

Viagogo MD Cris Miller says in a separate statement: “Viagogo cannot make detailed comment on the legal claims while the matter is before the court. However, we can say that the issues raised by the Commerce Commission relate to the way our ticketing website worked in the past and do not reflect current operations.

“We believe that we have addressed the matters of concern raised by the NZ Commerce Commission and have made it a priority to ensure the Viagogo website is operated transparently and in compliance with consumer expectations and consumer protection legislation. We remain committed to complying with these requirements.

“While it would be easy to prejudge Viagogo in this matter, we ask that you allow the court process to play out and hear the perspective of both sides.”

 


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