Double trouble for Ticketmaster as second suit filed

by mtammas | February 12, 2009 at 09:16 pm

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There's double trouble coming at Ticketmaster as a second class-action lawsuit, challenging the extra charges it adds to the price of a ticket, looms ahead. The notice of action, filed Thursday with the Ontario Superior Court of Justice, alleges that Ticketmaster is breaking Ontario law by charging more than the issuing price of a ticket, and seeks $250 million in damages.

Ticketmaster's fees and service charges are the target of a proposed class-action lawsuit launched Thursday that alleges the entertainment colossus "conspired" to sell tickets at a higher cost than their original price, leading to their "unjust enrichment."
The suit comes on the heels of another one launched by the same two law firms that takes aim at Ticketmaster's online resale site, TicketsNow.
"Ticketmaster and Ticketmaster Canada charge their customers a variety of fees and charges, such as 'convenience charges' and 'processing fees,' in addition to the cost of a ticket," states the notice of action.
"By doing so, Ticketmaster and Ticketmaster Canada sold tickets to the class members at a higher price than that at which the tickets were first issued."
The notice of action, filed with the Ontario Superior Court of Justice, notes Ontario law prohibits the sale of tickets for prices higher than the issuing price.

Sutts, Strosberg of Toronto and Vancouver-based Branch McMaster filed Thursday's notice and are also behind Monday's $500 million class-action suit against Ticketmaster and its re-sale arm, TicketsNow. That suit claims the corporation's practices violate anti-scalping laws. Unlike the first suit which covered only Ontario ticket buyers, the second action is open to those who purchased tickets for events across Canada, excepting Ontario.

The suit filed Monday, which was only open to people who bought tickets for events in Ontario, alleged Ticketmaster and Ticketmaster Canada diverts consumer traffic from their websites to the TicketsNow website.
"This practice is designed to ensure the sale of tickets at the highest possible price, and, in all cases, at a price substantially higher than the price at which the tickets were first issued," that suit alleged.
None of the allegations have been proven in court.
Ticketmaster did not immediately return a call for comment.

Ticketmaster's practices have enraged consumers for some time, drawn the attention of the Consumers Association of Canada, and garnered recent criticism from working-class rocker, Bruce Springsteen.