Controversy Erupts Over Viagogo Promotion in Political Podcast

Controversy Erupts Over Viagogo Promotion in Political Podcast

Our latest Political Currency podcast episode has caused quite the uproar. Led by George Osborne and Ed Balls, the episode serves as an infomercial for the ticket resale site Viagogo. This promotion comes at a time when Viagogo is under unprecedented attack. Specifically, people are fed up with the company’s predatory ticket pricing practices and blatant violation of consumer rights.

In the UK, Viagogo’s practices have come under increasing pressure. It enables corporate scalpers to acquire huge swathes of tickets for in demand events and then gouge consumers by reselling them at increased prices. Yet this practice has raised alarm bells with consumers and industry professionals alike. Competitors such as StubHub have responded, raising their hands and presenting themselves to the public as better pricing, more equitable options.

The Competition and Markets Authority (CMA) recently obtained a court order requiring secondary ticketing site Viagogo to stop breaching UK consumer rights. This all comes after a report from the CMA a week earlier that produced a shocking statistic. In 2019, around 80%-100% of tickets sold via Viagogo were marked up more than 20% above their face value. According to critics, this has meant that the site mostly helps ticket touts, instead of regular consumers who go there searching for an honest deal.

In fact, the Advertising Standards Authority (ASA) has previously admonished Viagogo over misleading consumer statements about ticket prices. The firm claimed that more than 50 percent of the events it listed on its site were offering tickets at below face value. The ASA ruled against the claim as “ludicrous.” They argued that offering only one ticket per event below face value is not a meaningful chance for consumers.

“One ticket per event was not a significant proportion of tickets and, as such, did not represent a reasonable chance for consumers to purchase tickets below face value … we considered that the claim, as it would be understood by consumers, had not been substantiated and was therefore misleading.” – ASA

Viagogo’s position is that its face value definition already includes an additional 20% charge. This reading is not the same as a plain and popular consumer understanding. In a statement, a spokesperson for ticket reseller Viagogo said the company’s practices were entirely proper. They continued, “The ad in question is from last year, has been stopped, and has not run since last year.”

Though Osborne had endured much criticism, he nonetheless offered an overall positive view of the experience on the podcast. He even recommended Viagogo as the best place for people to go and find discounted tickets.

“It sounds like Viagogo might be the solution next time I need cheaper tickets to the hottest shows in town.” – George Osborne

This statement has been met with increased backlash as it seems to dismiss real and widespread concern over the platform’s pricing practices. The situation raises some important issues around how public officials should act when endorsing private companies. This is doubly crucial when those enterprises have previously been accused of exploitative behavior.

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