In case you weren’t aware, Oasis are back together and off on tour after Noel and Liam patched things up.
But whilst the Gallaghers are getting on, Ticketmaster and the Competition and Markets Authority (CMA) certainly aren’t following allegations that the former had engaged in unfair commercial practices - including so-called “dynamic pricing”.
Sudden hikes in prices experienced by fans whilst trying to purchase tickets has now triggered the CMA to launch an investigation into what happened. Thrings Head of Commercial Kate Westbrook takes a look at what you need to know:
What happened?
Demand for tickets soared following the announcement that the legendary Mancunian band would be on the road, with people flooding Ticketmaster to try and get in on the action.
But whilst tickets originally went on sale at around £150, some fans reported that they were being asked to pay as much as £200 more for the privilege than previously advertised. This led many to make formal complaints to the CMA who have launched a formal investigation into Ticketmaster, how they went about selling tickets and whether consumer protection law was breached.
What is dynamic pricing and what does the law say?
‘Dynamic pricing’ is the term given to the practice of adjusting prices for goods and services according to changing market conditions, including fluctuations in demand.
Whilst not illegal in itself and is, in fact, becoming increasingly more common across many sectors, if dynamic pricing results in the misleading of consumers, it has the potential to breach consumer protections and competition law.
Sometimes pressure being placed on the consumer can be in the form of dark patterns such as countdown timers or slogans such as “hurry, limited offer” or “lock in this price now”.
The law dictates that businesses (ticket sale site or otherwise) must be transparent when dealing with consumers and be clear and accurate about how much people will be paying. With this being called into question over sales of Oasis tickets, the CMA will now investigate what information buyers were given on pricing before they reached the checkout.
What is the investigation looking at?
The investigation is set to look at 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 impacting their purchasing decisions
What does this mean?
If the CMA finds that there was insufficient transparency, or that consumers were misled or put under pressure to make a purchasing decision, Ticketmaster could find themselves defending a criminal action brought by the CMA. At present, the CMA is required to enforce consumer law through the courts but changes to the law will give them stronger powers in the future, with fines of up to 10% of global turnover being on the cards. This won’t, however, apply to the investigation into the Oasis tickets.
In addition to potential criminal liability, an allegation of a breach in consumer law can have a significant impact on reputation and trust. Consumers may also have certain rights to unwind a sale, or to receive a discount or damages.
Kate Westbrook, Head of Thrings’ Commercial team, said: “When you are selling a high demand product or service, dynamic pricing is a way of maximising revenue and profit. But if you are doing so in a way that is misleading or in a which pressurises the customer, you will run the risk of breaching consumer law.
“Businesses should always take care when selling to consumers, whether they’re using dynamic pricing or not, and consider whether their activities could mislead or pressure their customers. If they have any doubt, they should seek legal advice to ensure their practices are compliant with the law.”
Thrings’ Commercial lawyers are experienced in supporting businesses of all sizes through the complicated changing worlds of contracts, intellectual property and technology, helping clients to stay on top of new laws and ensure best practice. Get in contact to find out how they can help your business achieve its goals.
