The Commerce Commission has celebrated the win of a legal battle against ticket reseller Viagogo.
The battle took place after Viagogo's repeated misconduct, as the company consistently misled customers about its authenticity as an official ticket reseller, its status as a resale platform and the price, scarcity and validity of tickets.
Vanessa Horne, fair trading general manager for the Commerce Commission, said that Viagogo was one of the Commission's most complained about traders, as many New Zealand consumers were unknowingly purchasing tickets that were not valid for admission.
"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," said Horne.
"This resulted in significant distress and financial impacts for consumers."
The Commerce Commission pursued this case for over eight years, and it has since been ruled that Viagogo must be upfront with New Zealand consumers about what they are purchasing.
Horne said that the importance of the legal win is an excellent example of how a consumer protection agency like the Commerce Commission can successfully hold global businesses like Viagogo accountable.
Businesses must be clear about their legal obligations, including the protections provided by the Fair Trading Act, if they are to operate in the New Zealand market.
The Commission's legal action against Viagogo began in 2018 and concluded this year with the High Court's ruling against the company.
"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.
"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."
Viagogo even required in its terms and conditions that any customer disputes be resolved through the Swiss courts, which the High Court has now deemed an 'unfair contract term' under the Fair Trading Act.
The High Court ordered Viagogo to correct the misleading information on its website and update its contract terms and conditions with New Zealand consumers.
Viagogo has since appealed the judgement, which the Commission will vigorously defend.
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