Federal Court allows Viagogo a reprieve in paying $7 million fine

The Federal Court has allowed ticket-reseller Viagogo to hold off paying a $7 million fine for breaching the Australian Consumer Law pending the result of the Swiss-based company’s appeal.

Following legal action pursued against the controversial secondary ticketing firm by the Australian Competition and Consumer Commission (ACCC) for making false or misleading representations when reselling tickets to live events.

The Federal Court ruled that the secondary ticketing firm had indeed made false or misleading representations and “engaged in conduct liable to mislead the public”.

However, with an appeal against that decision pending, the Federal Court last week said Viagogo could delay paying the fine until proceedings concluded.

The ACCC brought legal action against the firm in 2017, and in April 2019 the Court found Viagogo had misled consumers by claiming it was the ‘official’ seller of tickets and that certain tickets were scarce. The fine was announced as part of sentencing in October.

Viagogo is appealing the ruling while also highlighting its cashflow difficulties citing how the COVID-19 had heavily impacted the live entertainment industry and had a “catastrophic effect” on its own revenue.

It reported a second-quarter net loss in 2020 and that it had been forced to significantly reduce its workforce, stating that being forced to pay the fine would result in further job losses.

The ACCC opposed the delay, claiming that a fine being potentially financially disastrous was not a basis for either a penalty not to be imposed or be stayed pending appeal.

However, the judge accepted Viagogo’s arguments, highlighting that the live industry could restart later this year. According to the Australian Associated Press, she added: “I note that the appellant is not suggesting it cannot now pay, rather it is the impact of doing so now that is relied on.”

The postponement of the fine payment doesn’t affect the separate court order that restricted Viagogo from making certain misleading statements about its service.