This article is more than 1 year old

This article is more than 1 year old

The competition regulator has scored a landmark legal victory over Viagogo, securing a court order that will force the tickets website to give consumers more information about what they are buying, including the identity of touts advertising tickets.

The Competition and Markets Authority initially applied for an interim enforcement order in the high court that compels Viagogo to change its business practices until the conclusion of a forthcoming legal battle.

But after late-night talks on the eve of a courtroom battle, Viagogo agreed to make what the CMA called a “comprehensive overhaul” of its UK website on a permanent basis, starting from 17 January.

If the ticket website fails to make good on its promise, a court would be able to launch a prosecution that could result in fines for the company or even imprisonment of senior staff.

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Under the court order, described by digital minister Margot James as a “great victory for consumers” Viagogo will have to tell buyers if there is a risk that they could be turned away at the door due to restrictions on resale imposed by promoters.

Ticket listings will also have to include the identity of the person selling the tickets and whether they are a professional tout, rather than a fan who can no longer attend a show and wants to recoup the face value of the ticket.

A trader will be defined as someone who sells more than 100 tickets a year.

Critics of the company’s practices say sellers are frequently touts who have harvested tickets in bulk at the expense of genuine consumers, in order to exploit high demand by charging huge mark-ups to fans.

It will have to publish information that the CMA says it has not previously released, such as the face value of tickets and the seat number, so that fans know exactly what they are buying.

The court order also prevents Viagogo from giving misleading information about the number of tickets left for a show, to prevent fans being pressured into making a purchase by the suggestion that there are fewer seats left than there really are.

Viagogo, based in Geneva, will also have to check whether there are any restrictions by concert promoters, such as a ban on resale, before setting up a page advertising seats at an event.

The order also includes restrictions on “speculative selling”, where tickets are advertised that do not yet exist, potentially by professional touts who know they are likely to be able to procure tickets.

Finally, it will be forced to strengthen its consumer guarantees and improve its complaints handling process.

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The CMA chief executive, Andrea Coscelli, said: “We have been clear throughout our investigation that people who use these resale websites must know key facts before parting with their hard-earned money, including what seat they will get and whether there is a risk they might not actually get into the event at all.

“Viagogo has agreed to a comprehensive overhaul of its site to ensure it respects the law, just like the other resale sites who have already signed commitments to improve the information they offer and give people a fair deal.”

Despite having been compelled to change its practices by court order, Viagogo said it had reached a “ground-breaking settlement” with the CMA.

“We are pleased that we have been able to work closely with the CMA to come to an agreement that provides even greater transparency to consumers,” a spokesperson said.

Digital minister Margot James, who advised consumers to boycott Viagogo earlier this year, said: “This is a great victory for consumers, giving real fans the chance to see their favourite stars at a fair price.

“Government is committed to cracking down on unacceptable behaviour in the secondary ticketing market. We have banned the use of ticket bots and are working with industry to find solutions that will kill off crooked practices once and for all.”

Anti-tout campaign group FanFair Alliance said Viagogo had “effectively become a rogue operator”. It added: “That it’s required a court order to force their compliance with existing legislation is nothing short of extraordinary.”