Ticket Resellers in Nevada Hit by Class Action Lawsuits

A couple of ticket resellers in Nevada were named defendants in class action lawsuits.

Hidden Fees Result in Lawsuits

That is the case of SeatGeek Inc. and Vegas.com LLC, two ticket resellers that are being sued by Kemp Jones LLP’s attorney Michael Gayan, who filed legal claims on behalf of two people who used the platforms, as announced by the Las Vegas Review-Journal.

The lawsuit against SeatGeek was filed on behalf of Mars Carbonell, a Las Vegas resident who used the platform to purchase tickets. On the other hand, Gayan filed the second lawsuit against Vegas.com on behalf of a Rachel Cachon, a resident of Glendale, California, who also used the platform’s services.

The main issue with the two ticket reseller platforms, as described in each lawsuit, is hidden fees. Accusing SeatGeek and Vegas.com of drip pricing, the lawsuits argue that the resellers offer their services without hidden fees but right before the finalization of a ticket order, additional fees inflate the price. This, according to the two lawsuits is in breach of the existing laws in Nevada.

The so-called drip pricing is a pricing technique that involves the partial advertisement of products. Companies that use such sales tactics promote a product’s lower price before increasing it with the addition of extra charges during the buying process. While not advertised at first, such additional fees and charges inflate the price and are often mandatory.

The Offered Price Is Artificially Low, the Lawsuits Allege

The lawsuits explain: “To get consumers to shop on its platform, (they) advertise fee-less ticket prices, string consumers along several checkout screens and continue to represent that artificially low price as consumers input their credit card information, billing information and ticket delivery information.” Moreover, the legal claims alleged that Vegas.com and SeatGeek are “ambushing consumers purchasing tickets” by proposing prices without fees and adding such extra charges before completion of the purchase.

Filed with the US District Court in Las Vegas, the two lawsuits request statutory and compensatory damages set by the court or jury, demand prejudgment interest, as well as reimbursement of attorney’s fees and restitution financial relief. What’s more, the lawsuits seek a declaration that the defendants breached Nevada law.

“We’re not able to provide comment on ongoing litigation, but SeatGeek remains committed to providing fans shopping on SeatGeek the choice to see prices, including fees, before selecting their seat,“

reads a statement released by SeatGeek

A representative for SeatGeek acknowledged that the company cannot comment in light of the ongoing litigation. “We’ve consistently supported consumer-friendly transparency measures, and we continue to strongly support price transparency legislation at the state and federal level,” the representative added.