TicketNetwork reached an agreement with the Competition Bureau to address concerns over drip pricing and other misleading claims in the online resale of tickets to concerts, sports, theater and entertainment events.
A Bureau investigation concluded that TicketNetwork advertised tickets at unattainable prices, a practice known as drip pricing. They also promoted tickets at unobtainable discounts. The Bureau determined that consumers could not buy tickets at advertised prices and discounts because the company charged consumers mandatory fees in addition to the prices and discounts advertised. The Bureau found that the mandatory fees added more than 38% on average and, in some cases, over 53% to the advertised prices.
The Bureau further found that TicketNetwork promoted tickets to Canadian events in American dollars, but failed to clearly identify the currency in advertised prices.
The investigation also concluded that TicketNetwork used misleading digital content, including search engine ads and website URLs, that gave the impression to consumers that they were buying directly from the venue, artist or sports team when in fact they were purchasing resale tickets.
The company made these claims on its websites and in promotional emails sent to Canadians.
As part of an agreement registered with the Competition Tribunal, TicketNetwork agreed to:
- pay a $825,000 penalty
- not engage in drip pricing, not promote unobtainable discounts, clearly identify the currency in advertised prices, and not misrepresent resale websites as venue, artist or sports team websites
- establish a compliance program and implement new procedures to comply with the law and prevent advertising issues in the future
