Photo Credit: Nainoa Shizuru
Ticketmaster is set to pay $6 million in a Canadian class action lawsuit regarding ‘drip pricing’ practices.
Ticketmaster has settled a class action lawsuit in Canada regarding its “drip pricing” practices, for which it must pay out $6 million CAD. The settlement will be split between those signed on to the class action and was finalized last week in a Saskatchewan court.
The lawsuit sparked from claims that Ticketmaster hid the prices of ticket fees in 2018, breaching the Consumer Protection and Business Practices Act. Allegations included that unnecessary fees outside the regular ticket price were added deceptively at check-out. Ticketmaster, while refusing to admit to any wrongdoing, agreed to settle.
According to the settlement, affected customers are eligible to receive up to $45 in Ticketmaster credit, which can be used toward future ticket purchases. Eligible customers — those who purchased tickets in Canada between January 1, 2018 and June 30, 2018 — should soon see an email communication from the company with a link to receive their credit.
Estimates indicate up to 100,000 individuals in Saskatchewan and potentially over a million across Canada could qualify for credits. Eligible customers will receive their credits through electronic gift cards. These are transferrable, but cannot exceed $45.
“While this case does not involve a mega-settlement, it has proved to be a legitimate consumer protection lawsuit which could only have been viably prosecuted as a class action,” wrote Justice Graeme Mitchell, of Regina, Saskatchewan’s Court of King’s Bench. “Class counsel deserve an economic incentive for pursuing this claim to its successful resolution.”
Attorneys will receive $1.7 million, or more than a quarter, of the settlement fund. Lead plaintiff Crystal Watch will receive $25,000.
Once the distribution process is completed, any remaining funds from the settlement will be rerouted to organizations chosen by Ticketmaster and the plaintiff, pending final approval from the courts.
This is far from the first time Ticketmaster has faced scrutiny over misleading pricing in Canada alone. In 2019, the Competition Bureau of Canada imposed a $4 million fine on the company over similar accusations, determining advertised prices were misleading due to mandatory fees added late in the transaction. “Canadians should be able to trust the prices advertised are the ones they will pay when purchasing tickets online,” said Commissioner Matthew Boswell.