The UK’s competition watchdog has opened a formal investigation into Ticketmaster after tickets for Oasis’ reunion shows went on sale last weekend. The Competition and Markets Authority said it will look into the company’s dynamic pricing practice and whether it broke consumer law.

Dynamic pricing involves a business adjusting prices based on shifting market conditions, such as demand. Airlines are among those that use the model.

Some Oasis fans who tried desperately to get tickets for the band’s first shows in 16 years waited for hours in Ticketmaster’s virtual queues. When they were finally able to buy tickets, some found that they were two or three times more expensive than they may have expected due to dynamic pricing. With Ticketmaster often giving customers mere moments to complete a purchase after tickets are in their cart, fans were faced with having to make a snap decision about paying significantly more than they’d anticipated.

The CMA will look into the pressure of that ticking clock on consumers’ purchasing decisions. It will also attempt to determine if Ticketmaster conducted “unfair commercial practices” that are banned under the Consumer Protection from Unfair Trading Regulations Act 2008. Moreover, the watchdog will investigate whether customers were provided with “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.”

The CMA notes that while dynamic pricing isn’t inherently illegal under UK law, ticket sales platforms have to be transparent with customers, and provide clear and accurate details about how much they need to pay. The watchdog said that the practice could breach consumer protection or competition law in certain cases.

Oasis criticized the use of dynamic pricing for the band’s long-awaited reunion gigs. “It needs to be made clear that Oasis leave decisions on ticketing and pricing entirely to their promoters and management,” the band said in a statement. It claimed to have no “awareness that dynamic pricing was going to be used.” Other high-profile artists — including Taylor Swift, Ed Sheeran and The Cure — have opted out of using dynamic pricing for recent shows.

Following the scramble for Oasis tickets, the UK government has pledged to look at dynamic pricing as part of a consultation into the secondary-ticket market this fall. In the US, the Justice Department and many state and district attorneys general filed an antitrust suit in a bid to break up Ticketmaster owner Live Nation. They claim it holds a monopoly over the live entertainment industry. Ticketmaster was also the victim of a cyber attack this year in which hackers obtained the personal information of 560 million customers.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/uk-competition-watchdog-opens-ticketmaster-probe-after-oasis-ticket-debacle-143233958.html?src=rss

Content merged from September 5, 2024 2:32 pm:

The UK’s competition watchdog has opened a formal investigation into Ticketmaster after tickets for Oasis’ reunion shows went on sale last weekend. The Competition and Markets Authority said it will look into the company’s dynamic pricing practice and whether it broke consumer law.

Dynamic pricing involves a business adjusting prices based on shifting market conditions, such as demand. Airlines are among those that use the model.

Some Oasis fans who tried desperately to get tickets for the band’s first shows in 16 years waited for hours in Ticketmaster’s virtual queues. When they were finally able to buy tickets, some found that they were two or three times more expensive than they may have expected due to dynamic pricing. With Ticketmaster often giving customers mere moments to complete a purchase after tickets are in their cart, fans were faced with having to make a snap decision about paying significantly more than they’d anticipated.

The CMA will look into the pressure of that ticking clock on consumers’ purchasing decisions. It will also attempt to determine if Ticketmaster conducted “unfair commercial practices” that are banned under the Consumer Protection from Unfair Trading Regulations Act 2008. Moreover, the watchdog will investigate whether customers were provided with “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.”

The CMA notes that while dynamic pricing isn’t inherently illegal under UK law, ticket sales platforms have to be transparent with customers, and provide clear and accurate details about how much they need to pay. The watchdog said that the practice could breach consumer protection or competition law in certain cases.

Oasis criticized the use of dynamic pricing for the band’s long-awaited reunion gigs. “It needs to be made clear that Oasis leave decisions on ticketing and pricing entirely to their promoters and management,” the band said in a statement. It claimed to have no “awareness that dynamic pricing was going to be used.” Other high-profile artists — including Taylor Swift, Ed Sheeran and The Cure — have opted out of using dynamic pricing for recent shows.

Following the scramble for Oasis tickets, the UK government has pledged to look at dynamic pricing as part of a consultation into the secondary-ticket market this fall. In the US, the Justice Department and many state and district attorneys general filed an antitrust suit in a bid to break up Ticketmaster owner Live Nation. They claim it holds a monopoly over the live entertainment industry. Ticketmaster was also the victim of a cyber attack this year in which hackers obtained the personal information of 560 million customers.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/uk-competition-watchdog-opens-ticketmaster-probe-after-oasis-ticket-debacle-143233958.html?src=rss