Charges have been brought by Cardiff county council's trading standards authority who claim a fraud has taken place.
Fans purchased tickets 'Golden tickets' under the impression that monies spent would be used by the club to purchase players in the January 2010 transfer window.
The club though, at the the time, were under a transfer embargo and no new players were signed in that window.
Peter Ridsdale says: "We are absolutely vigorously denying the charges and we will take whatever action is necessary to defend ourselves."
The consumer-protection charges claim Ridsdale's commercial practice was unfair and likely to distort the economic behaviour of the average fan with regard to the season-ticket purchases and the club's failure to inform fans of the transfer embargo imposed by the football authorities.
"As a result [it] caused or was likely to cause the average consumer to take a transactional decision he would not have taken otherwise," the charges state. Trading standards is pushing for the case to be heard at a crown court. Magistrates have adjourned the case until 22 July.