Not Disclosing Additional Fees Triggers $4.5 Million Fine for Ticketmaster
Ticketmaster L.L.C., TNow Entertainment Group, Inc. and Ticketmaster Canada LP have settled the lawsuit brought by the Canadian Competition Bureau that alleged that Ticketmaster’s advertised prices were deceptive because consumers had to pay additional fees that were added later in the purchasing process. This “drip pricing” resulted in consumers paying much higher prices than advertised, the Bureau alleged, with the result that Ticketmaster’s mandatory fees often inflated the advertised price by more than 20% and, in some cases, by over 65%.
As part of the settlement, Ticketmaster agreed to pay a penalty of $4 million plus the Bureau’s investigation costs of $500,000 (all figures Canadian). Ticketmaster also agreed to put a compliance program into place to ensure that its advertising complies with the Competition Act. It has already made a number of changes to its websites and mobile applications.
We previously wrote about the Bureau’s dealings with Ticketmaster in Ticketmaster Prices Are Misleading: Competition Bureau (If You Can Get Tickets)
Ticketmaster entered into a 10-year consent agreement with the Commissioner of Competition to ensure compliance with its settlement.
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