Author: comptroller

Government Attacks Viagogo

Viagogo is a website that resells tickets for concerts, events, shows etc.

Viagogo has a bad reputation for hiding the true cost of the tickets and for not warning people that their tickets may not be valid (in many cases only the original purchaser can use the ticket) etc.

The Competition and Markets Authority (CMA) has issued court proceedings against Viagogo over concerns it is breaking consumer protection law.

Following an investigation into the secondary ticketing sector, the CMA began enforcement action against four major secondary ticketing websites in November 2018. As a result, three of those sites – StubHub, GETMEIN! and Seatwave – offered formal commitments in April 2019 to overhaul the way they do business.

However, Viagogo has not offered to make the changes the CMA considers necessary to bring it in line with the law. Legal proceedings have therefore been brought in the High Court.

Andrea Coscelli, CMA Chief Executive Officer, said that people who buy tickets on websites like Viagogo must be given all the information they are entitled to. It’s imperative they know key facts, including what seat they will get and whether there is a risk they might not actually get into the event.

This applies to Viagogo as much as it does to any other secondary ticketing website. Unfortunately, while other businesses have agreed to overhaul their sites to ensure they respect the law, Viagogo has not.

The CMA’s concerns include:-

  • Customer not being told if there is a risk that they will be turned away at the door
  • Customers are not being informed which seat in the venue they will get
  • Customers are not being told who is selling the ticket, which means that they can benefit from enhanced legal rights when buying from a business
  • Customers are given misleading information about the availability and popularity of tickets – which can lead to them being rushed into making a buying decision or making the wrong choice
  • Customers experience difficulties in getting their money back under Viagogo’s guarantee when things go wrong
  • Customers are being offered tickets that a seller does not own and may not be able to supply

Under the circumstances, it would seem foolhardy to trust Viagogo with your money.

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Confirmation of Payee

When you make a bank transfer, you provide the name, sort code and account code to send the money to.  You might reasonably expect that the bank pays attention to all three of those pieces of information and if they don’t match then warn you.

However, banks do not do this – they ignore the name and send the money to the sort code and account code regardless of who they belong to.

If you make a mistake and put the wrong sort code or account code then your money is likely to be gone – and that’s your responsibility.

Scammers know this and use various ploys to get people to transfer money to them believing it is their builder or plumber or a friend or official organisation etc.   The name does not need to match the account as no-one checks it.

Under plans from the UK’s payments operator, the name of someone receiving a payment will be as important as their banking details for the first time from mid 2019, in an attempt to combat fraud and the sender will be alerted if the name does not match the account.

This change is designed to combat cases when fraudsters mimic a genuine business and attempt to trick people into sending money to an account controlled by the fraudster.

How Confirmation of Payee Will Work

  1. When setting up a new payment, or amending an existing one, banks will be able to check the name on the account of the person or organisation you are paying.
    1. If you use the correct account name, you will receive confirmation that the details match, and can proceed with the payment
    2. If you use a similar name to the account holder, you will be provided with the actual name of the account holder to check. You can update the details and try again, or contact the intended recipient to check the details
    3. If you enter the wrong name for the account holder you will be told the details do not match and advised to contact the person or organisation you are trying to pay

“This is an important step and we would like to see the banks implement this new protection as quickly as possible, giving everyone greater protection against fraud,” said a spokeswoman for payments watchdog, the Payment Systems Regulator.

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How Comparison Sites Cheat

The Competition and Markets Authority (CMA) was concerned that comparison web sites were making hotel rooms seem more popular than they actually are.

Expedia, Booking.com,  Hotels.com, ebookers and trivago have been investigated by the CMA over pressure selling and misleading discount claims.

“The CMA has taken enforcement action to bring to an end misleading sales tactics, hidden charges and other practices in the online hotel booking market,” said CMA Chairman Andrew Tyrie.

The CMA will now seek to make the rest of the sector follow the same rules as the six companies it has named.

The companies have all agreed to the following:-

  • To make it clearer how hotels are graded, including whether hotels paying the ranking sites more have received a position higher up the list
  • To not give a false impression of a hotel’s popularity to rush customers into making a booking. For example, when saying that other customers are looking at the same hotel as you, it should be made clear it they are searching for different dates. Some sites were also placing sold-out hotels within search results to put pressure on people to book more quickly. They have now committed not to do this
  • To be clear about discounts and only promoting deals that are actually available at that time. The CMA found sites comparing a higher weekend room rate with a weekday rate or comparing the price of a luxury suite with a standard room
  • To show charges such as taxes, booking or resort fees in the price

The companies have until 1 September 2019 to comply with the demands, otherwise they could be taken to court.

Compare the Market’s so-called most favoured nation contract clauses stopped home insurers from listing better prices elsewhere, in a bid to stop rivals winning home insurance customers.

But the practice also meant that home insurers were more likely to pay higher commission rates to comparison sites, potentially passing on the extra costs to customers.

“Our investigation has provisionally found that Compare the Market has broken the law by preventing home insurers from offering lower prices elsewhere. This could result in people paying higher premiums than they need to” said the CMA.

Well done the regulator. Comparison websites need to be fair and honest with their customers.

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