Viagogo loses lengthy legal battle, plans appeal

Viagogo has lost a years-long legal battle against New Zealand’s consumer watchdog over claims the site repeatedly misled customers.

The NZ Commerce Commission (CC) began investigating Viagogo, which has appealed the judgement, in 2017 and started civil proceedings in the High Court in August 2018.

It successfully argued the Swiss-headquartered secondary ticketing company had breached New Zealand’s Fair Trading Act by posting misleading information on its website about its authenticity as an official ticket seller, as well as its status as a resale platform and the price, scarcity, and validity of tickets.

The High Court has now ordered Viagogo to correct the misleading information and update its terms and conditions to allow for customer disputes to be dealt with through the New Zealand courts.

“The Commission is aware of a large number of reports from consumers who had purchased event tickets from Viagogo, booked flights and travel to attend the event, only to be turned away at the entrance when they found out for the first time that their tickets weren’t authentic,” says CC fair trading general manager Vanessa Horne. “This resulted in significant distress and financial impacts for consumers.”

“We now have a ruling that will require Viagogo to be upfront with Kiwi consumers about what they’re buying and ensure a fairer resolution system”

Horne says Viagogo challenged efforts to subject it to New Zealand jurisdiction, going so far as to require in its terms and conditions that any customer disputes had to be dealt with through the Swiss courts. However, the High Court deemed that to be an “unfair contract term” under the Fair Trading Act.

“We took this case on behalf of every one of those Kiwi consumers and pursued this large global entity over more than eight years – and we now have a ruling that will require Viagogo to be upfront with Kiwi consumers about what they’re buying and ensure a fairer resolution system for settling disputes against Viagogo in the future,” adds Horne.

“This case was about holding a global business to account for the harm they were causing in New Zealand and paving the way for individuals to have the ability to stand up for their consumer rights against international companies. The New Zealand Fair Trading Act requires businesses to make accurate claims and consider the overall impression a consumer would have based on their representations.”

A spokesperson for Viagogo says: “In 2018, the New Zealand Commerce Commission commenced civil proceedings against Viagogo. Following a trial that concluded in March 2023, a decision has now been issued. The findings relate to a combination of historic and more recent conduct. Viagogo has made amendments to its platform and remains fully committed to fulfilling all legal obligations and ensuring full compliance – as it does in all markets in which it operates.

“Viagogo is appealing against several aspects of the decision but is taking steps to comply with the decision pending the appeal being heard. Given the matter remains before the courts, Viagogo will make no further comment.”

The watchdog adds that Viagogo’s appeal against the ruling will be “strongly defended” by the Commission.

Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.

Read More Like This

News|10 Jan 2024

ASA rules Viagogo misled customers in NME ads

The UK watchdog has upheld a complaint that the resale of tickets via sites like Viagogo was banned by the events listed in the advertorials

News|20 Feb 2024

Viagogo settles with Swiss watchdog

The resale platform has agreed a compensation package for 800+ consumers following a six-year legal battle

News|15 Dec 2023

New appeal on first anniversary of Brixton tragedy

O2 Academy Brixton has remained closed since the deadly crowd crush on 15 December 2022, which claimed the lives of two people

News|02 Feb 2024

Canadian venue’s damages appeal rejected

Toronto's Ontario Place was sued by a concertgoer who suffered a serious knee injury following a Toby Keith concert in 2016

News|18 Mar 2024

Malaysian org threatens legal action over protests

ALIFE says it faces opposition from groups "calling for the cancellation of concerts featuring artists associated with 'sinful' activities"