Revenue / 01.25.18

Canada's Competition Bureau Sues Ticketmaster, Live Nation Over 'Deceptive' Price Practices

Access Staff

Original article published on the Toronto Globe & Mail (Canada) (01/25/18) by Josh O'Kane

Canada's Competition Bureau is suing Ticketmaster and its parent Live Nation Entertainment over the practice of "drip pricing" or deceptively adding fees to tickets later in the purchase process, which are typically labeled "service fees" or "facility charges." The bureau says Ticketmaster regularly increases prices more than 20 percent, or even more than 65 percent, above what was advertised. The agency notes it is seeking to bring "an end to the alleged deceptive marketing practices" and penalize both Ticketmaster and Live Nation through this action. The bureau's application with the Competition Tribunal contends the vendors "earned gross revenue from sales affected by the conduct in excess of several hundred million dollars in a year in Canada," although it has not signaled how large a penalty it may pursue. "To promote continued innovation and growth in the digital economy, it's critical that consumers have confidence that the prices they see online are the ones they will pay," says Competition Commissioner John Pecman. In response to the lawsuit, Ticketmaster has issued a statement saying "it remains committed to getting tickets into the hands of fans and has long practiced transparency to enable informed purchasing decisions," and that it "continues to work closely with provincial governments to enhance consumer protection and provide the best ticketing experience for fans."

Read the full story on the Toronto Globe & Mail (Canada) website.

Tags: Ticketmaster , News