Why is Viagogo’s business problematic? She sells tickets to cultural events of various types. Prices are often higher than if the customer bought them from the organizer or competitors, however, this in itself is not a legal problem. Czech law does not prohibit the resale of tickets for cultural and sporting events at a higher price than indicated on the ticket.
Only in cases where the new price would be grossly disproportionate to the original price could the customer request the cancellation of the contract and a refund, as this would be a disproportionate reduction. However, what would be considered a gross disparity in a particular case could only be assessed by a court. As they are intermediaries, they do not necessarily indicate the final price.
But what is no longer right is a situation where a company sells the same ticket (eg a specific theater performance, 10th row, seat 18) to more consumers at the same time. The “first come, first served” process follows. “In other words, if there are five customers who have the same ticket, then only one will get the required seat – the first to apply for the ticket. The rest simply will not get through the entry, because their ticket has already been used, “explains Eduarda Hekšová, director of the consumer organization dTest.
If the company offers tickets in this way repeatedly, or even for concerts that do not exist at all, it may be a scam. Given the amount and (probable) amount of tickets sold, it could also be a criminal offense. We are not talking about small amounts. Concert tickets for a group of friends or family often cost more than 10,000 crowns. The company also sells tickets for concerts that will take place outside the Czech Republic.
“The total damage caused to consumers as a result of these practices can be much higher than the amount of the ticket itself, as it must be added to the expenses for accommodation, meals, travel expenses,” Hekšová lists.
Legislation in this area is insufficient. Civil Code it provides for an exception where the consumer cannot withdraw from leisure contracts if the trader provides the service within a specified period. Concerts and tickets for other cultural events in the vast majority contain this determination of time. The only effective defense that would come to mind in this case is the so-called chargeback.
“Simply put, it is a banking service through which the bank of the injured consumer can find the account to which the money was sent and transfer it back to the consumer’s account,” says Eduarda Hekšová. However, it is up to the bank to decide whether to provide a financial service or to evaluate that the transaction was not successful. In the event that the consumer buys a ticket and gives his voluntary consent to the transfer of funds to the company’s account, banks the chargeback request is most often rejected.
Another problem is the fact that Viagogo often changes its headquarters. The company is currently headquartered in the United States, previously headquartered in Switzerland. Due to the fact that it is a foreign entity, it is not possible to contact the European Consumer Center operating during the Czech Trade Inspection Authority, but the supervisory body directly in the country of the operator’s registered office. At present, aggrieved consumers have the opportunity to file a complaint with the Federal Trade Commission. The Office may investigate your case, but filing an application requires a good knowledge of English. You can fill out the form at this site.
