Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Ticket reseller charged with alleged Super Bowl ticket scam, (Mar 12, 2015)

By Linda O’Brien, J.D., LL.M.

A New York-based ticket reseller engaged in unfair and deceptive business practices by selling purportedly guaranteed Super Bowl game tickets to Washington residents that it did not possess at the time of sale and failing to obtain a sufficient number of tickets for purchasers before the game, according to a complaint filed by the Washington Attorney General in the King County, Washington Superior Court (State of Washington v. SBTickets.com LLC, March 11, 2015).

The complaint states that, in 2013, SBTickets.com began marketing and selling sporting event tickets, hotel, house and suite rentals, private jet charters, limo transportation, security services, event management, and related services through an online website and social media sites. After the Seattle Seahawks advanced to the National Football League 2015 Super Bowl, SBTickets began selling game tickets to Washington residents. Its website contained numerous misrepresentations and omissions, including that the tickets were “ 100% guaranteed” and purchasers would get tickets “one way or another.”

Based on the Internet, email, and telephone messages directed at Washington residents, numerous Washington consumers purchased at least 60 Super Bowl tickets from SBTickets at prices ranging from $1,875 to $3,500 per tickets. Purchasers also arranged and paid for travel and accommodations to Phoenix, Arizona at a significant cost. These consumers then traveled to Phoenix for the Super Bowl festivities, the complaint alleges.

SBTickets failed to disclose to consumers that it was selling tickets that it did not possess at the time of sale. SBTickets had expected to buy Super Bowl tickets it had already sold by buying tickets from third parties at a later date for lower prices and then providing those tickets to its customers while profiting from the price difference. Instead, prices for Super Bowl tickets dramatically increased and SBTickets failed to acquire sufficient tickets for its purchasers. Rather than honoring its guarantee, SBTickets notified numerous customers just hours before the Super Bowl game began that they would not receiving any tickets, according to the complaint.

The complaint also alleges that SBTickets eventually did provide refunds to some purchasers in the amount they paid to SBTickets. However, SBTickets did not pay consumers the fair market value of the Super Bowl tickets they purported to sell them or pay for any of the travel and lodging costs incurred by residents due to SBTickets’ unfair and deceptive acts.

SBTickets engaged in an unfair and deceptive scheme that was contrary to the public interest and not in reasonable relation to the development or preservation of business. Notably, it was unfair and deceptive practice to misrepresent that consumers are guaranteed to receive a ticket when it was not true. SBTickets continues to advertise via their website and social media for upcoming events using many of the same misrepresentations and omissions.

The Attorney General asserts claims for violations of the Washington Consumer Protection Act. The action seeks declaratory and injunctive relief, restitution, civil penalties, costs of suit, attorney fees, and any other just and proper relief.

The case is No. 15-2-05918-1 SEA.

Attorneys: Jeffrey G. Rupert, Assistant Attorney General, State of Washington for the State of Washington.

Companies: SBTickets.com LLC

News: Antitrust WashingtonNews