CMA investigates Ticketmaster for dynamic pricing of Oasis tickets

The question

Can dynamic pricing breach consumer protection rules?

The key takeaway

Dynamic pricing does not automatically breach consumer protection legislation. However, if the pricing system materially distorts the economic behaviour of the average consumer, then it may constitute an unfair consumer practice in breach of UK consumer regulation (ie under the soon-to-be-in-force Digital Markets, Competition and Consumers Act 2024 (the DMCCA), which replaces the Consumer Protection from Unfair Trading Regulations 2008). The stakes are higher with the Competition and Markets Authority (CMA) about to take up new powers under the DMCCA to directly fine companies which undertake unfair consumer practices (up to £300,000 or 10% of their global turnover, if higher).

The background

In August 2024, Oasis announced that they would be returning for their first tour in 15 years. There were 17 dates announced. Tickets for the shows were sold on Ticketmaster and they all sold out within 10 hours. The face value of tickets increased from £150 to £350 within hours due to dynamic pricing. The CMA is now investigating Ticketmaster for its conduct in relation to these ticket sales.

The development

The CMA is investigating whether Ticketmaster engaged in unfair commercial practices which are prohibited under the CPRs, including offences relating to whether:

• there was clear and timely information explaining dynamic pricing to consumers, and
• people were put under pressure to buy tickets within a short amount of time.

Fans have been asked to provide evidence of their experiences in relation to purchasing or attempting to purchase Oasis tickets. The CMA is now engaging with Ticketmaster to consider whether it believes that there has been a breach of consumer protection law.

Why is this important?

It is not just other ticket agencies that will be interested in the outcome of this investigation; other industries where dynamic pricing is commonplace (such as flight and hotel booking retailers) will also want to see where the CMA land on this topic. The stakes are higher because of the CMA’s new enforcement and fining powers under the forthcoming DMCCA.

This is particularly pertinent as, although separate to the Oasis investigation, on 13 November 2024 the CMA launched a new project to evaluate how dynamic pricing is used in various sectors of the economy. The project demonstrates the CMA’s increased interest in dynamic pricing. Companies which use dynamic pricing need to be aware of the increased regulatory interest in this area and ensure that consumers are provided with the requisite information about these types of pricing models.

Any practical tips?

Clear and timely information should be provided to consumers prior to offering products or services for sale using a dynamic pricing system. Customers should not be put under pressure to buy tickets in a short amount of time without the relevant information available. Companies should carefully follow the CMA’s dynamic pricing monitoring project for sector specific updates.

Winter 2024