A new class action lawsuit filed on Tuesday alleges ticketing giant Ticketmaster of engaging in illegal bidding practices and intentionally misleading its customers with its “platinum ticket” offering.
Posted at 7:00 am
Ticketmaster regularly finds itself embarrassed by the public and taken to court for its practices, which many people consider dishonest, even illegal. The new class action filing, filed by Montreal law firm LPC in the Superior Court of Laval, denounces a practice that is “a clear violation” of consumer protection law. Not announcing a second concert when the first show goes on sale would serve, according to the request, “to squeeze as much money as possible from the real fans” who are desperately trying to get their hands on it.
By not letting buyers know that twice as many tickets are actually available, ticketing creates a scarcity effect that pushes up prices as demand increases. Fans are flocking to tickets for the first concert, unaware that they could get cheaper ones when the second goes on sale.
The class action motion seeks compensatory damages for the members of the class, punitive damages in the amount of $300 per member, reimbursement of the difference between the “regular” price and the price paid by each member, and an injunction ordering Ticketmaster to “amend its Discontinue Platforms and Their Prohibited Business Practices”.
The filing details the case of a consumer who purchased tickets to the P!nk show at the Bell Center, scheduled for next fall. According to court documents, in late February the consumer initially bought three tickets for the American singer’s November 1 show.
PHOTO MARIO ANSUONI, Portal
Singer P!nk performs in Los Angeles Monday night
He was offered “official platinum seats” on the ticketing platform, which Ticketmaster describes as his best seats, justifying an inflated price through dynamic pricing (the higher the demand, the higher the fares). However, the tickets, which sold for almost $350 each, were located 14 rows before the very last one, in the section farthest from the stage. The consumer also soon realized that other “platinum” bills were selling alongside hers for about $60 less. Partial Obstructed View Seats are also sold as Platinum Seats.
Finally, when the second concert went on sale, the consumer realized that better placed tickets were being offered for an additional $6.89.
“Systemic” Practices
The use of these practices is “systemic,” the request says, as other cases are listed. Consumers who bought tickets for the Drake concert in Montreal saw after their purchase that a second concert was announced and that they could have gotten much cheaper tickets. Additionally, lower-ranked seats will be listed as “Platinum,” while some in higher-up sections will be rated “Normal,” the petition said.
In the case of the admirer of P! nk the setbacks did not stop. The consumer opted for the slightly more expensive seats for the second concert, which would give her a better view of the show. She figured she could easily resell her first three tickets. To make sure she sells them, she wanted to set an affordable price, but encountered a platform-imposed resale floor of $345.01. This minimum is required when specifying that “Tickets in this section sell for only $231.00”. “Apparently, the plaintiff will never be able to sell his tickets for $345.01 or more if tickets in the same section are selling for $231.00,” the petition reads.
According to the petition, this practice consists of “anti-competitive behavior”. Pricing of this nature “is a prohibited activity under the general rules of Quebec civil law and competition law,” the documents said.
Several artists, including Robert Smith, leader of the group The Cure, whose tour recently went on sale, have spoken out to denounce Ticketmaster’s practices.
On the fan side, dissatisfaction resonates every time tickets to an important concert go on sale. Despite several lawsuits against the American company, Ticketmaster remains the largest box office in the entertainment market.
We tried to email Ticketmaster at the end of the day on Tuesday to no avail.