The Consumer Ombudsman is requesting that the Market Court prohibit Lippupiste Oy from marketing event tickets using ‘entry-level prices’ indicating the price ‘as from’ a specific minimum amount, when the prices do not include the order fee that will be added to the ticket price. The Consumer Ombudsman is requesting that the prohibition be reinforced with a conditional fine of EUR 100,000.
Lippupiste acts as a ticketing intermediary and markets and sells tickets to cultural, entertainment and sports events on behalf of event organizers’. In addition to the standard basic ticket price, Lippupiste charges service and order fees, which form part of the total price of the event ticket.
On its website, Lippupiste has failed to include the mandatory order fee in the “from” price of the event tickets it offers. The order fee, which amounts to EUR 1.50 plus 0.65 per cent of the order value, forms part of the total price of the event ticket and must be paid by the consumer. Consumers are informed of the order fee added to the “from” price and its amount only later in the purchase process.
Information on the final price of a product is essential for the consumer’s purchase decision. Under the Consumer Protection Act, when a trader markets a specific product with a “from” price, they are obliged to indicate the total price of the product including taxes. The total price means all costs that the trader can foresee and that the consumer cannot avoid paying when purchasing the product.
The purpose of the provisions on information to be provided in marketing is to ensure that the consumer is aware of the key factors that may affect their decision-making. The consumer must receive this information before making decisions concerning a consumer good.
According to the Consumer Ombudsman, Lippupiste has not indicated the total price of the event ticket in the manner required by the Consumer Protection Act when offering a specific event ticket on its website. The total price, which could already have been indicated on Lippupiste’s front page, has only been shown once the consumer has moved to the virtual shopping cart. Lippupiste’s practice has been likely to obscure the consumer’s understanding of the minimum price at which the event ticket can be purchased.
The Consumer Ombudsman considers that Lippupiste has acted in breach of the Consumer Protection Act by marketing an event ticket on its front page with a “from” price at which the consumer cannot in practice purchase the ticket.
”The consumer must be able to trust that the ticket can be purchased at the advertised ‘from’ price. Mandatory additional charges cannot be revealed only at the payment stage.”
Market Court decision may affect price marketing in the event ticketing sector
The negotiations between the Consumer Ombudsman and Lippupiste did not lead to a solution, and Lippupiste refused to change its practice for indicating the total price. For this reason, the Consumer Ombudsman is bringing the case before the Market Court for assessment.
The Consumer Ombudsman hopes that the Market Court’s decision will bring clarity to how fees charged in the event ticketing sector must be indicated and put an end to practices based on drip pricing. Lippupiste is part of Eventim (CTS EVENTIM AG & Co. KGaA).