Concerns Over Ticketmaster Practices
The competition for competition and markets (CMA) has issued a warning to TicketMaster, indicating that they may have breached laws regarding consumer rights during last summer’s ticket sales.
Issues Identified by the CMA
The CMA’s investigation highlighted two significant issues pertaining to the company’s practices. They assert that Ticketmaster labeled certain seating tickets as “platinum” and sold them at prices approximately 2.5 times higher than standard tickets, without providing adequate justification, additional benefits, or differentiation, as they were often located in the same areas as the standard seats.
Furthermore, the CMA notes that Ticketmaster failed to inform consumers about the two distinct price categories for permanent tickets, resulting in cheaper tickets being sold first before the more expensive options became available. This raised concerns that customers remained in line without realizing they would be required to pay higher prices.
“We are concerned that Oasis fans did not receive the necessary information they needed, which may have misled them regarding the ticket purchases, leading them to believe they were buying better options than they actually were,” stated Haley Fletcher, temporary senior director of consumer protection. “We now expect Ticketmaster to collaborate with us to address these issues so that fans can make informed decisions when purchasing tickets in the future.”
In response to the investigation, Ticketmaster stated: “At Ticketmaster, we aim to provide the best platform for ticket sales, ensuring a simple, transparent, and convenient experience for consumers. We welcome the CMA’s input to help improve the industry for fans.” They added that they “do not utilize dynamic pricing, including algorithmic, differential, or surge pricing, and we appreciate that the CMA has apparently excluded this from their investigation.”
The Oasis commented that they “never had an understanding that dynamic pricing would be utilized,” further noting that “previous discussions between promoters, Ticketmaster, and group leadership led to a positive ticket sales strategy aimed at creating a fair experience for fans, including dynamic ticketing, to help manage overall ticket pricing and reduce discrepancies, while fulfilling expectations.”
