Olympic tickets sales by unauthorised traders
Office of Fair Trading (OFT) closed consumer enforcement case.
Investigation against: Andreas Gyrre, Euroteam AS, Uncus AS, Ticket and Travel AS
Case reference number: CRE-E/26921
Update: 27 July 2012
Euroteam AS, Uncus AS, Ticket and Travel AS and the controlling director of these companies, Andreas Gyrre, have given undertakings to the High Court in relation to the unauthorised sale of tickets to the London Olympics.
Under the terms of the undertakings, the traders have committed to provide a full refund to any of their customers who either do not receive their tickets or are refused entry to an event as the tickets supplied are not valid. People who are refused entry should ensure that they retain their tickets, or get a receipt from the Games Organisers if their ticket is seized indicating that the customer was unable to gain entry. They should send a copy of their void ticket or the receipt to the trader when applying for their refund. The traders have also promised the High Court that they will make their contact details available on their websites so that customers can submit their refund requests easily.
Customers that may have purchased tickets from these traders should contact the trader at Evolve, Martin Linges vei 25, 1364 Fornebu, Oslo. The email address is [email protected].
People wishing to purchase tickets for the Olympics should visit www.tickets.London2012.com.
Summary
The OFT has taken Court action to stop a number of Norway based companies run by Andreas Gyrre from offering tickets for the London Olympic Games, when in fact they are not authorised to sell those tickets, and there is a real risk that they will be unable to supply many of the tickets they have sold to consumers: the OFT found that in early July 2012 of the approximately 20,000 tickets already sold by the companies, they had been able to source only 5,000. Furthermore, consumers who do receive tickets from these companies may find they are unable to enter the Games, because their ticket is not valid. The companies' websites misled consumers and failed to make clear the risks of buying tickets from them. The Court granted the OFT an Interim Enforcement Order, requiring the Defendants to stop offering Olympics tickets on their websites, failing which the OFT would be able to have the sites redirected to a holding page. This has now happened, so that the offending sites are no longer accessible to consumers. The OFT has also recently taken informal action against 236 other websites, operated by other traders, which were similarly offering Olympic tickets for sale, without being authorised to do so, to prevent consumers from continuing to be misled by them.
Issue
Euroteam AS, Uncus AS Ticket and Travel AS and the controlling director of these companies, have been investigated by the OFT for unlawfully offering for sale and selling tickets to the London Olympic Games. The investigation is being supported by the Metropolitan Police and Serious Organised Crime Agency (SOCA).
The Investigation has been carried out using powers under the Enterprise Act 2002, Consumer Protection from Unfair Trading Regulations 2008 and Unfair Terms in Consumer Contracts Regulations 1999 (UTCCRs). The Honourable Mr Justice Kenneth Parker granted an interim enforcement order requiring the websites, owned and operated by the companies, to cease to offer for sale or to sell London Olympic Games tickets, failing which the OFT may take steps to redirect 12 websites to an OFT holding page.
Summary of work
Euroteam AS, Uncus AS Ticket and Travel AS and the controlling director of these companies are not authorised to sell Olympic tickets, the sale of which is regulated and controlled by the International Olympic Committee (IOC) and the London Organising Committee of the Olympic and Paralympic Games (LOCOG).
The OFT is concerned that through the websites, the Defendants expressly and/or falsely asserted that:
- The Defendants had the ability legally to offer for sale London Olympic Games tickets.
- The Defendants were authorised distributors for London Olympic Games tickets.
- The Defendants would supply valid London Olympic Games tickets that would enable the consumer to gain entry to the London Olympic Games.
- The advertised tickets were available to the Defendants for immediate dispatch or dispatch within a reasonable time.
- The Defendants would dispatch the advertised goods in question within a reasonable time of a consumer purchasing the tickets and in sufficient time for the tickets to be used to gain entry to the London Olympic Games.
Some people that made purchases from these websites may receive tickets but could be refused entry as the Defendant is not an authorised ticket reseller while other people may not receive the tickets they have purchased.
The OFT has worked in partnership with the Metropolitan Police and Serious Organised Crime Authority (SOCA) during the course of the investigation.
As a result of its investigation, the OFT identified evidence of breaches of the Consumer Protection from Unfair Trading Regulations 2008 (CPRs):
- The practices constitute 'banned practices' listed in Schedule 1 to the CPRs prohibited under Regulation 3(4)(d) CPRs. The practice of stating or otherwise creating the impression that a product, namely London Olympic Games tickets, can legally be sold when it cannot, is in breach of paragraph 9 Schedule 1 CPRs.
- The practices infringe Regulation 3(4)(a) CPRs as constituting misleading actions under Regulation 5(2) CPRs, in particular in containing false information or information that is likely to deceive consumers in relation to a number of matters set out in Regulation 5(4) CPRs -in particular that the seller was authorised to supply Olympic tickets, as well as the availability of the tickets, and their fitness for purpose.
- The practices infringe Regulation 3(4)(b) CPRs as involving misleading omissions under Regulation 6 CPRs, taking account of the features of the commercial practice and in particular the business practices of the Defendants which omit and/or hide material information (such as the risk that consumers may be denied entry to the Games because the tickets supplied are void according to their terms and conditions). This is information that the average consumer needs to take an informed transactional decision.
At the interim hearing, the judge ruled that the Defendants' conduct was misleading, and that had consumers known the true position, they would not have proceeded to purchase any Olympic tickets from these sites. It was in the interests of consumer protection for an interim order to be granted. This case will proceed to a final hearing later this year.
In addition, the Defendants' terms and conditions included provisions which the OFT considers to be contrary to the Unfair Terms in Consumer Contracts Regulations 1999, in particular stating that consumers would only be entitled to a refund of 50 per cent of any price paid if they wished to cancel a purchase, and requiring any disputes to be decided in the courts of Norway.
Offences under the London Olympic Games and Paralympic Games Act 2006 are not listed Domestic infringements under the Enterprise Act 2002.
Tickets
Approximately 20,000 tickets were purchased from the websites but the investigation found that by early July 2012 the trader had only sourced 5,000 to supply.
Other sites unlawfully offering Olympic tickets
Over the last two weeks the OFT, with the support of the Metropolitan Police has also taken steps to remove content from another 236 unauthorised websites that were promoting and offering the sale of London Olympic Tickets. All the websites in question were controlled by different traders operating from outside the UK.
People wishing to purchase tickets for the Olympics should visit www.tickets.London2012.com.
Related documents
- (pdf 408kb)
- Press release OFT secures refunds for consumers following Olympic ticket investigation (1 August 2012)