Class-Action Suit by Olympic Spectators Seeks Full Refunds for Cancelled Games
Americans love the Summer Olympics. The long-limbed runners, twisting high divers, beach volleyball spikers, equestrian jumpers, and all the others who perform superhuman feats. The Games are arguably the only event that unites everyone, regardless of where they live, whom they vote for, or which team is playing. Many were holding their breath to see if gymnast Simone Biles could score four perfect tens and if Noah Lyles could match Usain Bolt’s sweep of three gold medals in track.
Those fortunate enough to have sufficient funds to witness the 2021 Tokyo Games in person shelled out $16,375 to CoSport, the sole authorized U.S. seller for full tourist packages that included hotels and event tickets. But now, due to the pandemic, all international spectators are banned. American fans can’t go and they want their money back. The seller told them it will only refund 75%. Yet their tickets are totally worthless now, and so they filed a class-action suit for a full refund.
Not only that, CoSport added further conditions. Those seeking refunds can only get their 75% if they request it within eight days and agree to hold CoSport “harmless for the remainder of the refund (25%).” The exact size of the class is unknown until plaintiffs receive CoSport’s business records, but the number is estimated to be in the tens of thousands.
Lead plaintiff Suzanne Caruso initiated the lawsuit on April 16 on “behalf of herself and all others similarly situated” in the United States District Court for the District of New Jersey, against Jet Set Sports, doing business in New Jersey as CoSport. The complaint also contained a demand for a jury trial. Plaintiffs allege breach of contract and violation of both the New Jersey Consumer Fraud Act (CFA) and the New Jersey Truth-in-Consumer Contract, Warranty and Notice Act (TCCWNA). The suit is being filed in federal court because members of the class reside in different states.
CoSport’s website describes the company as follows: ”CoSport is the world’s leading provider of Olympic Games tickets and hospitality packages, having supported hundreds of thousands of fans at the past 10 Olympic and Olympic Winter Games. For the next Olympic Games in Tokyo, we are proud to serve as an Official Sponsor/Partner of the National Olympic Committee as well as the exclusive Authorized Ticket Reseller in … 8(sic) territories and the United States.” It also states the “The International Olympic Committee and the United States Olympic Committee refers all Americans to CoSport for tickets and accommodations.”
The pandemic has played havoc with the Summer Olympics. Originally slated to begin on July 24, 2020, information from the World Health Organization led the International Olympic Committee and the Japanese government to reschedule the games for 2021. In the following months, many health and safety measures were instituted, but no one ever mentioned that bans on foreign travelers would be one of them.
On three occasions, in January, February and March 2021, CoSport sent email updates to ticket purchasers. The first one “categorically” denied rumors of cancellation, the second said ticket sales are reopened, and the third one told buyers that refund requests would be “unsuccessful” because they were awaiting their own refunds from the Olympics and hotels who had already received money from CoSport. Later that month, on March 20, 2021, Japanese Game organizers decided to ban all international spectators.
That same day, CoSport reiterated its need to get its own refunds before it could issue them to its customers. It also warned against trying to get credit card companies, who often offer travel insurance, to intervene, stating, “attempts to circumvent the official process will complicate the process and delay your refund.”
On April 16, in an email to plaintiff Caruso, CoSport made the 75% refund offer, claiming that significant amounts of her purchase price would be “unrecoverable” from hotels and other Japanese Olympic vendors. It said that the rest of the payment was needed by CoSport to cover the “work and costs” it took to develop the program. Caruso’s complaint said CoSport’s rationale “seeks to retain its profit from selling worthless tickets and accommodations in direct contradiction to its own contractual obligations.”
In its April letter, CoSport also offered the option of receiving a credit for the full price paid. Those who agreed to either the partial refund or the credit were required to sign away future rights by agreeing to “forever discharge and release CoSport and its affiliates from any and all claims arising out of or in connection with your order.” Anyone requesting a refund also had to sign the disclaimer. Plaintiffs argue this requirement completely contradicts a key term in the Limited Liability Clause of CoSport’s contract with buyers.
Plaintiff argued that she is a typical member of the class without any “interests antagonistic to other class members.” She also rationalized that a class action lawsuit is the most practical, manageable and efficient means of handling the claims against CoSport. She states that claims against CoSport under the two New Jersey laws will proceed only if the breach of contract suit fails. According to the plaintiff, these alternative complaints are based on the fact that “CoSport engaged in an unconscionable, unfair, deceptive, fraudulent and/or misleading pattern and practice…” It also targets the hold harmless and refund election provisions. They seek treble damages under the New Jersey CFA as well as actual and statutory damages of at least $100 per violation, plus attorneys’ fees and costs under the TCCWNA.
If successful, a jury will decide whether Caruso and her fellow class members will not only miss out on the unforgettable experience of seeing the Olympics in person but whether each of them also has to miss out on reimbursement of the over $4,000 that CoSport claims it needs to cover its costs. Exactly what those costs are and their legitimacy will be determined at trial.
