Canada’s competition watchdog is taking legal action against Ticketmaster and its parent company, Live Nation Entertainment, for what it calls “deceptive” advertised prices for entertainment event tickets.
The Competition Bureau announced Thursday (January 25) it's filed an application with the Competition Tribunal seeking to fine the companies and put an end to alleged drip pricing.
Drip pricing is an online marketing tactic in which customers see an initial price for a product that grows during the checkout process as additional charges are added.
“Ticketmaster’s mandatory fees often inflate the advertised price by more than 20% and, in some cases, by over 65%,” the Competition Bureau claimed in its announcement.
Ticketmaster declined an interview request from Business In Vancouver. Instead, the company said in a prepared statement it “has long practiced transparency to enable informed purchasing decisions.
“Ticketmaster continues to work closely with provincial governments to enhance consumer protection and provide the best ticketing experience for fans.”
In July 2017 the Competition Bureau, an independent law enforcement agency, urged ticket vendors to review their marketing practices and display the real price of tickets.
It warned that the Bureau may contact companies directly to encourage voluntary compliance and that it was willing to take further measures if an “out-of-court resolution” was not reached.
This week’s allegations and legal action come after the Bureau concluded its own investigation into Ticketmaster’s practices.
