Around AU $ 5 million (US $ 3.08 million) will be returned to viewers of the Boomers vs. two match series. Team USA last year at the Marvel Stadium in Melbourne, after an Australian consumer watchdog found that the promoter of TEG Live had made false claims about his seat plans.
A refund of 20,000 will be paid to those who have purchased a floor seat for the game. Despite a mock-up depicting tiered seats, the chairs used were in a flat row, lower than the court, and in some cases more than 30 meters from the action.
“Consumers pay premiums for seats on the floor, ranging between $ 895 and $ 3,995 for hospitality packages and may do so as a result of misleading seating advertisements,” said Rod Sims, chair of the Australian Competition and Consumer Commission. “In our view, TEG Live’s behavior is unacceptable.”
The ACCC stepped up in August ahead of the much-awaited two FIBA World Cup warm-up matches in Australia, instructing TEG Live to offer refunds to ticket holders who felt misled by ad campaigns or let down by inadequate seats. Many viewers did not accept the offer at the time.
On Tuesday, TEG Live received it that it would be necessary to give refunds to all ticket holders sitting on the floor, fully responsible for the disaster.
“Because this is the first time a basketball game has been staged at a football stadium in Australia, we created this background image,” a statement from TEG Live read, referring to the tiered seating visual. “In the end the mock-up does not reflect the actual seating arrangements. This is our fault.”
The ACCC also saw the potential for false advertising from the event, with many TEG Live players being used to market games – such as Kevin Durant, LeBron James and Stephen Curry – failed to travel to Australia.
“We are concerned consumers might have bought tickets believing that many of the advertised high profile players would play when, in the end, this did not happen,” Sims said.
However, he added: “Promoters do not have a reasonable reason in most cases to represent the consumers they will play or are willing to play.”
The TEG Live statement echoes Sims’ comments.
“We admit that some fans were disappointed because the US Men’s Basketball team that competed in Australia in August did not include some of the biggest NBA stars,” the report said. “Based on information provided to TEG Live by USA Basketball, we expect these stars to play.”
TEG Live will automatically return the money to fans who have purchased tickets after August 15, 2018, if they had previously requested a refund due to a change in team ranks. No other refunds will be offered because of changes to Team USA.
In the coming months, the company is expected to contact and return 5,000 fans who bought 20,000 floors of seats to the game.
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