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Global ticket reseller Viagogo has lost a six-year legal battle against New Zealand's consumer watchdog after being found to have repeatedly misled customers over its status as an official outlet.
The High Court has ordered the company to correct the misleading information on its website and update its terms and conditions to make it clear grievances can be heard by the New Zealand courts.
Fair trading general manager Vanessa Horne said Viagogo was one of the Commerce Commission's most complained about traders, as many consumers had been left out of pocket after unknowingly buying fake tickets.
"The commission is aware of a large number of reports from consumers who had purchased event tickets from Viagogo, booked flights and travel to attend the event, only to be turned away at the entrance when they found out for the first time that their tickets weren't authentic. This resulted in significant distress and financial impacts for consumers," she said.
"We took this case on behalf of every one of those Kiwi consumers and pursued this large global entity over more than eight years - and we now have a ruling that will require Viagogo to be upfront with Kiwi consumers about what they're buying and ensure a fairer resolution system for settling disputes against Viagogo in the future."
Global businesses needed to be clear about their obligations under the law when operating in the New Zealand market, including the protections that the Fair Trading Act provides to consumers and businesses, she said.
The Commerce Commission launched its legal action in 2018, but the company had challenged efforts to subject it to New Zealand jurisdiction.
Viagogo's terms and conditions required any customer disputes to be dealt with through the Swiss courts, which the High Court has now deemed to be an "unfair contract term" under the Fair Trading Act.
Viagogo has appealed the judgment but Horne said it would be "strongly defended" by the commission.
"This case was about holding a global business to account for the harm they were causing in New Zealand and paving the way for individuals to have the ability to stand up for their consumer rights against international companies.
"The New Zealand Fair Trading Act requires businesses to make accurate claims and consider the overall impression a consumer would have based on their representations."