October 29, 2009
Offering highly prized event tickets before they go on sale allows the seller to charge a premium price. However, the practice runs afoul of the New Jersey Attorney General's office, which sued to firms earlier this year.
New Jersey Attorney General Anne Milgram says the two companies have agreed to revise their business practices and to pay $5,000 each to settle the suits.
Almost Backstage Inc., of Vauxhall, N.J., which does business as abtickets.com and Ticket Town, Inc., of Fort Lee, which does business as northeasttickets.com, each agreed to not offer for sale, sell or advertise for purchase any concert ticket prior to the initial on-sale date. Each defendant also agreed to not offer tickets prior to obtaining ownership, custody and control of the tickets or obtaining a contractual right to the tickets.
"We want to end the fraud committed against the public through the offering of phantom tickets," Milgram said. "Our message to the ticket resale industry is very clear - it is fraud to sell something that you don't have and may never have, while giving the public the impression that these tickets are yours to sell."
Both defendants did not admit to any violations in reaching settlements with the Office of the Attorney General and its Division of Consumer Affairs. Each company will pay $5,000 to the state, in addition to complying with the state's Consumer Fraud Act.
As alleged in the Attorney General's Complaints, Almost Backstage and Ticket Town advertised and sold purported tickets to Bruce Springsteen's September and October concerts at Giants Stadium before any tickets were available to the public. Many of the advertised tickets were identified by specific section and row number at prices far in excess of face value, varying between $317 and $575.
"We continue our efforts to produce a level-playing field for consumers who expect, and are entitled to, an equal opportunity to purchase tickets when seats initially go on sale," said David Szuchman, New Jersey's Consumer Affairs Director. "We will take legal action against those ticket sellers who don't voluntarily stop their deceptions and false promises."
Three additional lawsuits filed in May against other ticket sellers remain active. The lawsuits were filed against Select-A-Ticket, Inc., of Riverdale, N.J.; Orbitz Worldwide, Inc., which does business as cheaptickets.com, of Chicago; and TicketNetwork, Inc. in Connecticut.
Orbitz and TicketNetwork are believed to be partners in a joint venture to advertise and resell tickets to events in New Jersey. The lawsuit against Orbitz Worldwide accuses it of advertising tickets for seats that did not physically exist in the arena.
