Excerpt
Viagogo was held liable for failing to provide actual ticket prices, misleading customers about ticket availability, and imposing unfair deadlines for claiming refunds under their guarantee.
Our analysis
The Competition and Markets Authority (CMA) has repeatedly warned Viagogo, a secondary ticketing site, to improve the way it presents information on its website in order to comply with UK consumer protection law. One area of focus has been the lack of information about the face value of tickets being offered for resale, as well as the fairness of certain restrictive terms and short deadlines for claiming refunds under Viagogo's guarantee. Despite legal action and a court order mandating Viagogo to overhaul its operations, the CMA has identified ongoing issues, such as incomplete information about resale restrictions, misleading claims about ticket availability, incomplete seat number information, and incomplete addresses of businesses selling tickets. The CMA contends that information about the face value of tickets is crucial for consumers to evaluate the quality of the ticket and to determine whether the price is reasonable. Additionally, information about time limits for claims under Viagogo's guarantee enables consumers to decide whether to use the platform for purchasing tickets.
Outcome
The CMA has successfully obtained a court order against Viagogo, which mandates the company to reform its business practices and adhere to the law. The order requires Viagogo to provide customers with information about the risk of being turned away at the event, their assigned seat, and information about businesses selling tickets. Viagogo is prohibited from providing misleading information about ticket availability and popularity, and must make it easier for customers to obtain refunds under its guarantee. Additionally, Viagogo is required to prevent the sale of tickets that the seller does not own and must inform customers of the face value of tickets on its site. These changes will benefit customers by enabling them to make informed decisions, avoiding misleading information, providing legal protection, and facilitating the refund process.
Parties
Competition and Markets Authority (CMA) and Viagogo
Case number
Claim No. FS-2018-000011
Decision
Related deceptive patterns
When a user is placed under time pressure, they are less able to critically evaluate the information shown to them because they have less time and may experience anxiety or stress. Providers can use this to their advantage, to push them into completing an action that may not entirely be in the user's interest.
Hidden costs involve obscuring or omitting additional fees, charges, or costs until the user is well into the purchasing or sign-up process. By that point, the user has already invested time and effort into the transaction and is more likely to proceed despite the unexpected costs.
The fake social proof deceptive pattern creates an illusion of popularity and credibility by presenting users with falsified or exaggerated endorsements, such as reviews, testimonials, or activity messages. This manipulation preys on the social proof cognitive bias, in which which individuals are likely to conform to the behaviour of others. It is a shortcut that allows people to avoid the hard work of carrying out a critical evaluation of their own. By using the fake social proof deceptive pattern, providers can trick users into making a purchase or engaging with their offerings.
Fake scarcity works by creating an artificial sense of limited availability around a product or service, pushing users to act quickly out of fear of missing out. This is achieved by displaying misleading messages about low stock levels or high demand. By tapping into the scarcity cognitive bias, this deceptive pattern preys on users' natural tendency to assign more value to items that appear rare or exclusive, pushing them into making hasty purchasing decisions without fully evaluating their options.
Related laws
Establish the legal framework for online retailers and service providers to comply with while conducting business with consumers.
Prohibit traders across all sectors from using unfair commercial practices that hinder consumers from making informed purchasing decisions.
Grant consumers the right to cancel contracts for goods or services made through remote communication channels such as the internet, email, or telephone.
Covers various aspects of consumer transactions, including the sale of goods and services, digital content, unfair contract terms, and remedies for faulty goods.