Global ticket reseller ordered to change 'misleading' information

Global ticket reseller Viagogo has been ordered by the High Court to correct misleading information on its website and update terms and conditions in contracts.

The Commerce Commission, which took the case against the reseller, declared the decision "a hard-fought victory".

The commission's Fair Trading general manager Vanessa Horne said Viagogo was one of the "most complained about traders" as many Kiwi consumers were unknowingly buying tickets that were not valid for admission.

Horne said there were a large number of reports from consumers spending large amounts for events, only to be "turned away at the entrance when they found out for the first time that their tickets weren't authentic".

"These businesses need to be clear about their obligations under the law if they are operating in the New Zealand market, including the protections that the Fair Trading Act provides to Kiwi consumers and businesses."

Legal action against Viagogo began in 2018 and involved a period in which the company challenged efforts to subject it to New Zealand jurisdiction.

"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," said Horne, in a statement.

Horne said Viagogo went so far as to require in its terms and conditions that any customer disputes had to be dealt with through the Swiss courts, which the High Court had now deemed an "unfair contract term" under the Fair Trading Act.

Viagogo has appealed the judgement, which the commission said would be "strongly defended".

A Viagogo spokesperson said the decision came after a trial that ended in March last year.

"The findings relate to a combination of historic and more recent conduct," the spokesperson said.

"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."