Published: 08-06-08
TicketCity of Austin cited for price-switching inflating ticket prices consumer deception
AUSTIN – Texas Attorney General Greg Abbott today charged an online ticket broker with unlawfully deceiving 2008 Beijing Summer Olympic Games ticket purchasers.
According to the state’s enforcement action Austin-based TicketCity Inc. initially sold opening ceremonies tickets for $1250 and promised to double the refund if it failed to deliver the pre-purchased tickets.
The defendants initially indicated that purchasers would receive their tickets before the start of the Olympics. Customers relying on TicketCity guarantees made hotel reservations and purchased airline tickets to Beijing.
According to court documents TicketCity did not possess the tickets they were selling online.
As a result in March 2008 TicketCity informed customers they would not be receiving their prepaid tickets and that their purchases would not be honored. The company also refused to honor the 200 percent refunds. Meanwhile TicketCity salespersons continued to offer opening ceremony tickets at dramatically higher prices. According to an Attorney General undercover investigator TicketCity representatives offered tickets starting at $7000 each.
Under security procedures imposed by the Chinese government tickets to the opening and closing ceremonies can only be transferred one time after being sold by the ticket vendor. Thus while the original purchaser can sell his or her ticket the second purchaser cannot.
Further the final end-user must have his or her personally identifying information including photo embedded into the ticket along with Chinese authorities’ written approval. According to the Chinese news agency Xinhuanet the final day for transferring opening ceremony tickets was July 14. Despite the restrictions TicketCity continued to offer tickets for sale as late as July 16.
The Attorney General seeks court-ordered civil penalties of up to $20000 per violation of the Texas Deceptive Trade Practices Act and awards in actual damages to consumers who were financially harmed.
Texans who believe they have been deceived by similar fraudulent business practices may call the Office of the Attorney General’s toll-free complaint line at (800) 252-8011 or file a complaint online at www.texasattorneygeneral.gov.
