Australian Competition and Consumer Commission v viagogo AG
[2019] FCA 544
At a glance
Source factsCourt
Federal Court of Australia
Decision date
2019-04-18
Before
Burley J
Source
Original judgment source is linked above.
Judgment (27 paragraphs)
- INTRODUCTION 1 The respondent, viagogo AG is a company incorporated in Switzerland. It operates an Australian website at http://www.viagogo.com.au (viagogo website) from which tickets for live events may be bought and sold. Viagogo refers to this as an online "marketplace" where people who hold tickets for live events may resell them via the viagogo website at a price of their own choosing. If a buyer is found, viagogo adds certain charges, including a booking fee of about 28% of the price of the ticket. The present case in large part depends on whether or not viagogo has made it sufficiently clear that it is not itself an authorised vendor of tickets but the facilitator of re-sale of tickets and that such charges will be levied. The Australian Competition and Consumer Commission (ACCC) in its capacity as the regulator under the Competition and Consumer Act 2010 (Cth) (CCA), contends that it has not. It claims that viagogo has engaged in misleading conduct in the manner in which it advertises in its sponsored links on Google and the manner in which it presents particular pages of its website. It contends that the conduct of viagogo is in breach of ss 18, 29(1)(h), 29(1)(i), 34 and/or 48(1) of the Australian Consumer Law (ACL) (being Schedule 2 to the CCA). It claims relief in the form of declarations, injunctions, pecuniary penalties and publication orders. 2 Viagogo denies that the representations as alleged have been made and denies that any of the representations that it did make were false, misleading or deceptive or likely to mislead or deceive. 3 The case advanced by the ACCC relies on four alleged misrepresentations. The first arises from the use of the words "Buy Now, viagogo Official Site" (the Official Site Representation) contained in sponsored advertisements on Google (viagogo ad) for particular events during the period from 1 May 2017 until 26 June 2017 (relevant period). The ACCC alleges that taken in the context of the promotion of a particular event these words misleadingly created the impression to consumers that viagogo was the official seller of tickets for the event promoted rather than an online platform for the resale of tickets, and thereby engaged in conduct in breach of ss 18, 34 and 29(1)(h) of the ACL. 4 The remaining misrepresentations are alleged to have been made in the viagogo website, which both promotes tickets for sale and provides the means by which purchases can be made. The second is that during the relevant period, a number of statements were made on pages of the website to the effect that tickets were likely to sell out soon, or were in limited supply (defined in section 5.5.1 below as the Quantity Representations), in circumstances where viagogo did not disclose that the references to the remaining number or percentage of tickets available were references only to tickets available from viagogo via its website, and not the number or percentage available for the event generally. The ACCC contends that such conduct was in contravention of ss 18 and s34 of the ACL. 5 The third alleged misrepresentation is that on 18 May 2017, on its "Tickets and Seating Selection Page", the viagogo website represented in respect of three particular events that a consumer could purchase a ticket for a specified amount, when in fact he or she could not, because additional fees were also payable (Total Price Representation). The Total Price Representation is also alleged to have been made with respect to events more generally during the relevant period. The ACCC alleges that such conduct was in contravention of ss 18 and 29(1) of the ACL. 6 The fourth alleged misrepresentation is that on 18 May 2017, viagogo represented on the "Delivery Page" of its website, a price for each of the tickets offered that excluded further fees payable and failed to specify in a prominent way, and as a single figure, the price of each of the tickets that included additional fees payable (Part Price Representation). The ACCC alleges that such conduct was in contravention of s 18 and s 48(1) of the ACL. 7 There is no dispute that each of the representations, if made, was made in trade or commerce and in connection with the supply or possible supply of services. Viagogo also does not dispute that the phrases identified by the ACCC were used in Google advertisements or the viagogo website. However, as I have noted, it denies making the alleged representations and denies that any representations were false or misleading within the provisions of the ACL upon which the ACCC relies. 8 The ACCC read the evidence of 8 witnesses. Three are officers of the ACCC who provided evidence in the form of video captures and screen shots of the viagogo ad and the viagogo website. The remaining five witnesses are: Terrence Maurice Aherne, Hazel Phyllis Bolding, Victoria Helen Burke, Bruce Alan McDowell and Susan Lynne Symons. They are all consumers who conducted Google searches for events and then followed a link to the viagogo website in order to acquire tickets. I refer to them below as the ACCC lay witnesses. The ACCC relies on their evidence as representing the conduct and reactions or ordinary consumers. Viagogo read the evidence of one witness, Melissa Jane Werry, a solicitor at Minter Ellison. She put into evidence screen shots of the viagogo ad. None of the witnesses were cross-examined. Most of the objections to the evidence were resolved at the hearing, although a number of paragraphs were admitted subject to consideration of their relevance in the context of the arguments put. Rulings in relation to those paragraphs are set out below. 9 The parties cooperated in the presentation of the evidence and in the agreement of relevant but uncontroversial facts, for which they are to be congratulated. By their efforts the proceedings could be heard efficiently and with no unnecessary hearing time. By orders made on 28 March 2018, the question of liability in the proceedings, including as to the entitlement to and terms of any declaratory relief, is to be heard separately from and before the entitlement to other relief. 10 For the reasons set out below, I find that the ACCC has established that viagogo made each of the misrepresentations alleged and that viagogo has acted in contravention of all of the provisions alleged with the exception that it has not established contravention of s 18(1) of the ACL in relation to the Part Price Representation. I direct that the parties confer and propose short minutes setting out draft orders for declaratory relief in order to give effect to these reasons, and a timetable for the provision of submissions going to any disagreements between them as to the form of those orders.