The band we never thought we’d see perform together again on the same stage, recently announced a reunion tour after 15 years apart. After setting alarm clocks bright and early on ticket sale day, Oasis fans were left disappointed after sitting in a virtual queues for hours – with many experiencing a number of technical issues – to then find ticket prices had drastically increased from those originally advertised.

Fans were vocal and expressed their frustration, complaining to the Advertising Standards Authority (ASA) over the misleading prices, criticising the ‘dynamic pricing’ strategy which increased various tickets by more than £300. This has led the Competition and Markets Authority (CMA) to investigate whether Ticketmaster breached consumer protection laws.

But what is dynamic pricing?

Dynamic pricing is a strategy used by ticket platforms where prices are automatically adjusted according to demand, allowing platforms to capitalise on popular or sought after events. Price changes are made by software, which collects data and uses algorithms to adjust pricing accordingly.

The practice is not illegal; however, it has the potential to breach consumer protection in specific circumstances if consumers are misled about the price they pay for a product.

Ticketmaster’s Purchase Policy i.e. terms and conditions available on its website states:

4.3 In many circumstances, Ticket prices are set at the time of the initial on-sale and stay the same until the event. However, some Tickets are “market-priced,” and so Sale Prices may increase or decrease at any time, based on demand. This is similar to how airline tickets and hotel rooms are sold and is commonly referred to as “Dynamic Pricing”. You will not be entitled to a refund or credit if (i) the Sale Price you paid for a Ticket was at any time before you purchased your Ticket less than the Sale Price you paid; or (ii) the Sale Price of any other Tickets to the relevant event (whether in the same price category or otherwise) is/are subsequently reduced after you purchase your Ticket.

CMA Investigation

The CMA has launched an investigation into the sale of Oasis tickets, focusing on whether Ticketmaster breached consumer protection law through misleading consumers about the they can expect to pay for a ticket – not least after spending hours in a queue.

Consumer law states that it is imperative that ticket sales sites are transparent and give clear pricing information in plenty of time, otherwise there is a risk of a breach in the law.

Dynamic pricing is a legal practice; however, it could violate consumer protection or competition law under certain conditions. The CMA investigation will examine whether:

• Ticketmaster engaged in unfair commercial practices which are prohibited under the Consumer Protection from Unfair Trading Regulations 2008.
• Consumers were given clear and timely information about potential fluctuation in prices.
• People were put under pressure to buy tickets within a short period of time which potentially impacts their purchasing decisions.

The CMA will investigate how dynamic pricing was used in this instance, looking at 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 investigation by the CMA is ongoing and will conclude on the 19th September 2024.

What happens if businesses get it wrong?

The Consumer Protection from Unfair Trading Regulations 2008 (CPR) apply to business-to-customer transactions and business-to-businesses practices with intricately connected consumers.

These state that unfair commercial practices are prohibited, including practices that don’t meet the standard of professional diligence and that affect an average consumer’s ability to make an informed decision.

Misleading actions and omissions are unfair commercial practices which could result in the average customer making a different decision they would not otherwise have made.

The offences in which advertising can be considered misleading are set out under Regulation 3 of the CPR 2008 – including baiting advertising products at a specified price without disclosing this price may change.

If a business is found to have conducted any of these offences, they will have breached the CPRs.

The Local Authority Trading Standards Services and the Office of Fair Trading have a duty to enforce CPRs which ranges from informal regulatory procedures to criminal procedures. A result of being found liable in criminal proceedings could mean:

• A business faces a fine not exceeding the statutory minimum of £5,000.

• Personal liability of a fine, imprisonment not exceeding two years or both.

What should businesses be doing?

• Businesses using a dynamic pricing strategy need to be transparent with their prices and the likelihood of these prices rising. Communication should be both timely and transparent (e.g. don’t hide dynamic pricing terms away, draw attention to them). Failure to do so could breach consumer protection law and result in a fine.

• Technical reliability is key in a dynamic pricing strategy, as technical glitches alongside dynamic pricing could result in a poor customer experience – which can also damage the businesses reputation.

Following on from the CMA’s ongoing investigation and a call from the UK competition authority for more protections for consumers, the government is planning a consultation on dynamic pricing and measures to provide stronger protections to consumers in the ticketing sector.

Understandably, ‘Don’t look back in anger’ doesn’t seem to quite cut it with fans this time, but will Ticketmaster be able to redeem itself and justify its pricing as fair and transparent?

Did you manage to get hold of tickets? What are your thoughts on dynamic pricing, do you think it’s fair? Let us know in the comments.

Make sure to stay tuned for more on this to come.