Ticketmaster to pay $4.5 million penalty for misleading ticket prices
After finding that Ticketmaster‘s advertised prices did not reflect the true cost of tickets, the Competition Bureau said on Thursday, June 27 that Ticketmaster LLC, Now Entertainment Group Inc. and Ticketmaster Canada LP will pay $4.5 million in penalties and related costs to settle the case. The online ticketing service adds mandatory fees at a later point in the purchasing process that reflects higher costs than those advertised initially to consumers. In most cases, the fees would add at least 20% to the total cost; some cases, it would increase the total cost by over 65%.
Despite customers’ ability to see the additional fees before completing their transaction, the Bureau maintains that Ticketmaster advertised misleading prices. Commissioner of Competition Matthew Boswell hopes the scrutinization of Ticketmaster’s pricing system will serve as an example to other competitors. He stated, “the bureau expects all ticket vendors to take note and review their marketing practices, knowing that the bureau continues to examine similar issues in the marketplace and will take action as necessary”.
Ticketmaster said it is committed to leading in consumer safety and transparency and has adopted practices to protect Canadians. Along with the $4.5 million penalty, the Ticketmaster companies will also create a compliance program as part of the settlement.
H/T: Global News