FIFA Hit With World Cup Price-Fixing Class Action Lawsuit

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The international soccer governing body FIFA faces a potential price-fixing class action lawsuit over allegations that American fans were significantly overcharged for 2014 Men’s World Cup tickets by misleading U.S. consumers into believing tickets were “sold out” and then artificially inflating seat prices.

Lead plaintiffs Vicky Palivos and George Kleanthis filed the FIFA class action lawsuit on Wednesday claiming that the self-proclaimed “guardian of this most cherished game” engaged in a conspiracy with their authorized sub-agents within the United States to inform customers that tickets were almost “sold out” but they could pay a premium in order to get seats at the world’s most popular sporting competition.

According to the FIFA class action lawsuit, plaintiff Palivos made multiple attempts to find tickets at face value but was informed that if she wanted World Cup tickets she would have to pay a “substantially higher” price, even though FIFA’s governing rules and regulations prohibit the sale of tickets for more than their face value.

In the end, Palivos claims she reluctantly purchased World Cup tickets that had a value of $135 per ticket for $736 per ticket. This amounted to a 445 percent ticket mark-up.

Plaintiff Kleanthis alleges he had a similar experience when trying to purchase tickets as he too was informed that most of the seats were “sold out.” For four seats that should have been a total of $540, Kleanthis claims he spent $2,900 which was a 437 percent mark-up.

According to the FIFA price-fixing class action lawsuit, FIFA’s terms and conditions state that holders may not resell their tickets as a way to make a profit. Palivos claims that had American consumers known of the conspiracy to inflate event tickets which not only violates FIFA’s regulations but also Brazilian laws, they would not have paid a price higher than face value.

Americans purchased more 2014 Men’s World Cup tickets than any other country, aside from Brazil. The class action lawsuit alleges that based on the unlawful price-fixing conspiracy and fraud on behalf of FIFA and its authorized agents including Match Hospitality and SportsMark Management Group, the defendant defrauded hundreds of millions of dollars from American customers.

The plaintiffs claim FIFA and its authorized agents violated the Racketeer Influenced and Corrupt Organizations Act, Sherman Act and Clayton Act by entering into a conspiracy in “restraint of trade to artificially raise, fix, maintain, and/or manipulate prices for tickets to Americans to attend the 2014 World Cup.”

If approved, the FIFA antitrust class action lawsuit would be open to all U.S. Class Members who purchased tickets to attend one or more matches of the 2014 World Cup in Brazil via FIFA’s authorized United States sales agents offering official ‘hospitality’ packages.

The plaintiffs are represented by Martin A. Little and Michael R. Ernst of Jolley Urga Woodbury & Little and Will A. Lemkul and Morris Sullivan Lemkul & Pitegoff LLP.

The FIFA World Cup Price-Fixing Class Action Lawsuit is Vicki Palivos, et al. v. Federation Internationale Football Association, Case No. 2:15-cv-01721, in the U.S. District Court for the District of Nevada.

UPDATE: On Feb. 19, 2016, the plaintiffs argued that FIFA is distorting their claims in its motion to dismiss the class action. Plaintiffs Vicki Palivos and George Kleanthis say they understand that FIFA has the right to set their own prices for the events it holds and are not contesting that right. However, they are contesting the alleged conspiracy between FIFA and authorized ticket resellers that they claim violates the Racketeer Influenced and Corrupt Organizations Act (RICO) and federal antitrust statutes.

UPDATE 2: On Mar. 4, 2016, fans struck back against FIFA’s argument that lead plaintiffs should be sanctioned for starting a class action alleging the international soccer association conspired to fix ticket prices for the World Cup.

UPDATE 3: On Mar. 14, 2016, FIFA filed a very strong reply in support of joint motions for sanctions against two fans and their attorneys. FIFA accused the plaintiffs and counsel of fabricating an argument without merit and says the organization is the victim of the issue at hand, not the perpetrator.