Viagogo could be forced to pay back millions of pounds to fans who bought tickets through the site only to be turned away at the door, the Guardian has learned.
A landmark court order against Viagogo obtained by the Competition and Markets Authority (CMA) this week includes a requirement that the company funds an independent review of outstanding refund claims submitted since January 2016.
Any customers found to be entitled to compensation will not need to do anything to make a claim and should be contacted by the company. The review could lead to refunds for fans of artists such as Ed Sheeran, whose decision to refuse entry to people who bought tickets through Viagogo led to hundreds of people being turned away this year.
In a separate measure that is expected to prove costly for Viagogo, the company will have to pay for a third party to monitor its overall compliance with the court order, which demanded a “complete overhaul” of the tickets site.
It will also have to pay the CMA’s legal costs, which are likely to be substantial given the regulator’s lengthy investigation.
A ticketing expert, Reg Walker, said: “If you look at the number of people claiming refunds when tickets haven’t worked, it could cost them millions. I’d be surprised if it doesn’t.
“It’ll be interesting to see where this money is going to come from. Will it come from Viagogo or will the company attempt to charge the people who sold the tickets that didn’t work? Touts could have a nasty surprise coming.”
The CMA’s legal victory forces Viagogo to address alleged breaches of laws designed to protect consumers. From 17 January, it will have to make changes such as identifying when sellers are professional touts and informing customers whether there are ticket restrictions that mean they may be refused entry. Viagogo will have to pay for independent monitoring to ensure it is complying with the commitments.
The order states: “If you, Viagogo AG, disobey this order, you may be held in contempt of court and liable to be fined or you have your assets seized and your directors may also be liable to imprisonment or to be fined or have their assets seized.”
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The full court order, obtained by the Guardian on Thursday, includes a raft of other previously undisclosed demands that Viagogo will have to comply with. These include barring Viagogo from advising people seeking a refund to relist the tickets on its website to recoup their money, a practice that allowed the company to reap extra revenues by claiming a commission on the subsequent sale.
It will also have to remove messages that claim it does not itself buy or sell tickets in order to list them on its website. It has previously claimed it does not do this.
Professional touts who use the site will have to provide a postal address to buyers on the checkout page, making it easy for promoters and consumers to identify them.
Viagogo will also have to hand over details about its biggest sellers to the CMA, if the regulator demands the information.
Claire Turnham, who has already secured nearly £1m in refunds from the company through the Facebook campaign group Victim of Viagogo, welcomed the compensation requirement.
“This has to be the most encouraging step forward yet,” she said. “They may be being forced to comply but it’s still a good thing because we can’t continue as we are. If people think they have a claim, I’d still advise them to contact the company directly.”
The Guardian has approached Viagogo, which is owned and run by the US entrepreneur Eric Baker, for comment.