Following the controversy over the Oasis concert sales at the end of August, particularly the issues around “dynamic pricing” the Competition and Markets Authority is investigating Ticketmaster.
According to the Times, hundreds of fans complained to the Advertising Standards Authority after surge pricing on the Ticketmaster website led to the cost of standard tickets more than doubling from £148 to £355 while fans were in the online queue. Which? and the Chartered Trading Standards Institute have also weighed in with their concerns.
Dynamic pricing is where a business adjusts its prices according to changing market conditions including high demand. It is becoming increasingly prevalent across a number of different markets and sectors. The CMA says that it is not the first time fans of live sporting and music events have raised concerns. It is not in itself unlawful but might breach consumer protection or competition law in certain circumstances. The CMA will investigate how it may have been used in this instance and the information buyers were given regarding the price they would pay as they went through the process of buying tickets and importantly, before they reached the check-out.
The CMA is scrutinising whether the sale of Oasis tickets by Ticketmaster may have breached consumer protection law. The investigation will consider a variety of things including whether:
- Ticketmaster has engaged in unfair commercial practices which are prohibited under the Consumer Protection from Unfair Trading Regulations 2008.
- People were given clear and timely information to explain that the tickets could be subject to so-called ‘dynamic pricing’ with prices changing depending on demand, and how this would operate, including the price they would pay for any tickets purchased.
- People were put under pressure to buy tickets within a short period of time – at a higher price than they understood they would have to pay, potentially affecting their purchasing decisions.
The CMA is at the initial stage of its investigation and will now be engaging with Ticketmaster and gathering evidence from various other sources, which may include the band’s management and event organisers. It emphasises that it should not be assumed that Ticketmaster has broken consumer protection law. The CMA will also consider whether it is appropriate to investigate the conduct of anyone else in relation to the matter. As part of its information gathering, the CMA is also inviting fans to submit evidence of their experiences in relation to the purchase or attempted purchase of Oasis tickets.
How the case will progress depends on the evidence – this could include the CMA closing the investigation if it believes that consumer protection law is unlikely to have been breached, securing undertakings from the company to address any concerns, or taking court action.
