TicketNetwork has agreed to pay a whopping $825,000 penalty to settle concerns over misleading advertising practices in the fiercely competitive ticket resale market. The company has reached a landmark agreement with the Competition Bureau to address issues related to drip pricing and deceptive claims in the online resale of tickets for concerts, sports, theater, and entertainment events.
The Competition Bureau’s exhaustive investigation unearthed a series of questionable practices by TicketNetwork. The company was found guilty of advertising tickets at unattainable prices—a deceptive practice known as drip pricing. Additionally, TicketNetwork promoted tickets with discounts that turned out to be unobtainable, as the company slapped consumers with mandatory fees on top of advertised prices, hiking costs by more than 38% on average and, in some cases, a staggering 53%.
The investigation laid bare TicketNetwork’s practice of promoting tickets to Canadian events in American dollars, leaving consumers grappling with an opaque pricing structure. The absence of clear identification regarding the currency in advertised prices became a source of frustration for ticket buyers, who were essentially kept in the dark about the genuine costs of their purchases. This lack of transparency not only raised eyebrows but also underscored a troubling trend in the ticket resale market.
However, the probe’s most disconcerting revelation was TicketNetwork’s adept use of misleading digital content, a strategy that extended to search engine ads and website URLs. By deploying these tactics, TicketNetwork crafted a facade that duped consumers into believing they were making direct purchases from the event venue, artist, or sports team. In reality, unsuspecting buyers were falling victim to the intricacies of the resale market, completely unaware that their transactions were not with the primary vendors.
Commissioner of Competition, Matthew Boswell, voiced his concern over such deceptive practices, emphasizing the critical need for businesses, especially in the ticketing industry, to adopt transparent and accurate advertising. Boswell asserted, “Ticket vendors must make true pricing claims, and resellers must stop misrepresenting that they’re primary vendors when they’re not. We remind all businesses to review their marketing claims to make sure they don’t mislead consumers.”
In response to the findings and as part of the agreement registered with the Competition Tribunal, TicketNetwork has committed to a comprehensive three-pronged strategy. Firstly, the company will bear the weight of a substantial $825,000 penalty. Secondly, TicketNetwork will overhaul its marketing practices by abstaining from engaging in drip pricing and avoiding the promotion of unattainable discounts. Equally important, the company has pledged to ensure clarity in advertised prices by clearly identifying the currency. Additionally, TicketNetwork will put an end to the misleading representation of resale websites as official venue, artist, or sports team platforms.
The company’s commitment doesn’t end there; as part of the agreement, TicketNetwork will institute a compliance program and implement new procedures. These measures are designed to not only rectify past transgressions but to proactively ensure future adherence to the law. Through these steps, TicketNetwork aims to rebuild trust with consumers and prevent the recurrence of similar advertising issues in the dynamic and often murky landscape of the ticket resale market.
This isn’t the first time the Competition Bureau has cracked down on misleading advertising in the ticketing industry. Ticketmaster, StubHub, and TicketNetwork have collectively faced over $6 million in penalties since 2019. The actions against drip pricing aren’t limited to ticketing, with the car rental industry also facing close to $6 million in total penalties.
The Competition Bureau is encouraging anyone who suspects deceptive marketing claims to report them using their online form, as they continue to champion fair and transparent business practices for the benefit of Canadian consumers and businesses.