Just days after Canada’s Competition Bureau filed suit against Live Nation in that country for what it refers to as “Drip Pricing” – the act of introducing substantial fees at the tail end of a ticketing transaction – Merchant Law Group LLP has announced a national class action lawsuit against Ticketmaster and Live Nation.
“Canadians always expect to pay the price advertised, whether it’s for buying groceries or tickets to a concert. Ticketmaster and Live nation collected these fees by advertising a much lower price for tickets, than jacking up the price,” said Tony Merchant, Q.C.
The litigation was launched Friday and seeks compensation for affected Canadian residents “for all improperly collected fees, where drip pricing was used by Ticketmaster and Live Nation,” according to a piece on Kamloopsbcnow.com.
“This case is particularly egregious given the dominant position which these companies hold over online ticket sales. When you consider the millions of sales transactions done by Ticketmaster in Canada each year, the magnitude of this class action becomes clear.
“Our plaintiff, Micheal Lindenbach, estimates that in the last five years, he has paid more than $1,000 overall in drip fees,” said Merchant.
An investigation by The Competition Bureau found that Ticketmaster’s fees generally inflated the price of tickets by more than 20 percent, sometimes going as high as 65 percent. They requested that the Competition Tribunal – a different agency within the Canadian government, order the drip pricing practice be stopped, and the entertainment giant hit with financial penalties.
“In July, we called on ticket vendors to review their marketing practices. Today, we are filing an application with the [Competition] Tribunal to stop Ticketmaster from making deceptive claims to consumers,” Commissioner of Competition John Pecman said in a statement. “Together, these actions send a strong signal to online retailers: consumers must have confidence that advertised prices are the ones they will pay.”
Canadians who have used Ticketmaster and Live Nation to purchase event tickets can join the class action by contacting Merchant Law.