In September 2022, a proposed class action lawsuit was filed in Ontario against Ticketmaster Canada Holdings ULC and its parent company Live Nation Entertainment, Inc. The lawsuit alleges that Ticketmaster used deceptive pricing practices by advertising ticket prices that were much lower than the final amount paid after added fees. This article provides an overview of the key details of the Ticketmaster Canada class action lawsuit, including the allegations, affected consumers, potential compensation, and the current status of the case.
What are the allegations against Ticketmaster?
The statement of claim in the Ticketmaster Canada class action outlines several allegations against the companies related to their ticketing fees and practices:
Misleading ticket prices
The core allegation is that Ticketmaster advertised ticket prices on their platform that were much lower than the final price paid by customers after additional fees were added at checkout. Customers allege being misled into believing tickets would cost one base price, only to find the eventual total was often more than 30% higher after mandatory fees.
Unexpected processing and service fees
In addition to the mismatch between advertised and actual prices, the lawsuit alleges customers were subjected to unreasonable mandatory processing and service fees that were not adequately disclosed beforehand. These extra fees were sometimes nearly half the base cost of the ticket itself.
“Drip pricing” strategy
The class action claim states that Ticketmaster intentionally engaged in “drip pricing,” revealing additional fees and true costs slowly throughout the purchasing process to lock customers into buying. This strategy allegedly obscures the true ticket prices and manipulates customers into paying much higher prices than expected.
Who is affected by the Ticketmaster Canada class action?
The proposed class would include all customers in Canada who purchased tickets on Ticketmaster.ca between September 1, 2019 and September 1, 2023 and were charged amounts higher than the advertised ticket prices.
This is estimated to include at least several million Ticketmaster customers across Canada based on the company’s large market share of primary ticket sales. However, the exact number of class members will depend on sales data disclosed during the case.
What compensation is being sought?
The statement of claim requests the following main forms of relief on behalf of all proposed class members:
- Refunds of the difference between advertised ticket prices and actual amounts charged
- Full refunds of all processing and service fees charged
- $50 million in general damages
- $10 million in punitive damages
If successful, class members could receive full refunds of the extra amounts paid in fees compared to the initially advertised ticket prices. The claims for general and punitive damages would also provide additional compensation to class members if awarded by the court.
What is the current status of the case?
As of October 2022, the Ticketmaster Canada class action lawsuit is in the early procedural stages:
Proposed national class action filed
The statement of claim proposing the national class action was filed on September 13, 2022 at the Ontario Superior Court of Justice in Toronto. This formally commenced the lawsuit.
Defendants have not yet responded
Ticketmaster Canada and Live Nation have not yet filed responses to the claim or class action application. The company has stated it will defend itself vigorously against the allegations.
Case management underway
The court is now taking steps to organize the proceeding, such as setting deadlines for procedural matters, disclosure, and determining the steps ahead. This case management phase will shape the early direction of the lawsuit.
No class approved yet
The court has not yet determined whether to certify or authorize the proposed national class for lawsuit. The certification stage is a key hurdle in class actions that Ticketmaster will have a chance to oppose.
What needs to happen for the case to succeed?
For the Ticketmaster Canada class action to achieve any form of success or compensation for customers, some key steps still need to occur:
Class certification
The court will need to grant an order approving and certifying the proposed national class of all Canadian Ticketmaster customers. Without certification, the case cannot proceed as a class action.
Merits victory
On the merits of the claims, the plaintiffs will need to win a judgment against Ticketmaster finding the company liable for breaching consumer protection laws across Canada. This requires proving their allegations at trial or summary judgment.
Settlement approval
If a settlement is reached to avoid trial, the court will need to approve the settlement terms as fair, reasonable, and in the best interests of class members. This includes approving a distribution scheme for compensation to the class.
What are the next steps in the case?
Over the next 6-12 months, some key next steps to watch for include:
- Ticketmaster filing its defenses and opposing class certification
- Plaintiffs seeking records and data from Ticketmaster through discovery
- The court deciding whether to certify the national class
- Either a trial or settlement negotiations if certification succeeds
The case faces a long road ahead with uncertain outcomes. But the court’s class certification decision will be a major turning point dictating the future trajectory of the lawsuit.
Could I join or opt out of the Ticketmaster class action?
If the class is certified by the court, there will be an opportunity for class members to opt out and not be bound by the lawsuit. There is no ability yet to opt out or join the lawsuit before the class is certified.
The court will approve a notice program if the class is certified to inform potential class members of their rights. After receiving notice, Canadian Ticketmaster customers could decide whether to participate in the case or opt out and preserve their ability to sue individually. The notice would provide opt out instructions and important deadlines.
Conclusion
The proposed Ticketmaster Canada class action lawsuit makes serious allegations of misleading pricing practices harming millions of customers across Canada. The case faces procedural hurdles and opposition from Ticketmaster before any compensation could be awarded. But it has the potential to hold the company accountable through significant damages, refunds, and changes to its ticketing fee policies if successful.
Affected customers will need to monitor the lawsuit’s progress and court decisions on certification closely. The next 6-12 months of procedural stages will determine if this case moves forward as a national class action or fizzles out. Anyone interested can look up details of the case in the public court records using the style of cause “McCutcheon v. Ticketmaster Canada Holdings ULC.”