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New UK Bill Targets Dynamic Pricing in Concert Tickets Amid Antitrust Scrutiny

By  |  October 21, 2024

A new law aimed at bringing transparency to the often murky world of concert ticket pricing is set to be introduced in Parliament. The Sale of Tickets (Sporting and Cultural Events) Bill seeks to provide fans with certainty about the maximum price they will pay when queuing online for tickets, in a move that has garnered attention following widespread outrage over the use of “dynamic pricing” by ticketing giant Ticketmaster.

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    Dynamic pricing, a model that adjusts prices based on real-time demand, became a flashpoint when thousands of Oasis fans queuing online for tickets to the band’s much-anticipated reunion tour in August were stunned by the final cost at checkout. Tickets, initially listed at £148, had more than doubled to £355 by the time fans reached the payment stage. According to Sky News, this sudden price hike has sparked investigations by the UK’s Competition and Markets Authority (CMA) and Ireland’s Competition and Consumer Protection Commission (CCPC), as complaints from consumers have poured in.

    The bill, spearheaded by Labour MP Rupa Huq, is designed to guarantee that fans will know the maximum price they might pay before they enter the often hours-long queuing process. Per Sky News, Ms. Huq expressed her shock at how the current system pressures fans into accepting inflated prices after spending extensive time online refreshing ticket pages.

    “The pressure is immense when you’re refreshing for six hours to find yourself then finally at the top of the queue,” Ms. Huq told reporters. “By then the ticket is five times the price of what you thought it was. From a consumer protection point of view, people deserve certainty. This bill would enshrine a maximum price, so what you see when you start the process is what you pay.”

    Related: Green Day Ticket Prices Spark Controversy Amid Dynamic Pricing Concerns

    Proponents of dynamic pricing, including industry defenders cited by Sky News, argue that the practice is a standard business model used in industries such as airlines, hotels and ride-sharing services. They claim it allows prices to fluctuate with demand, which can result in cheaper tickets when demand is low. However, critics contend that when applied to high-demand events, the model exploits consumers, especially those who may feel compelled to complete a purchase after queuing for hours.

    Ms. Huq, MP for Ealing Central and Acton, noted that the bill isn’t an attempt to outlaw dynamic pricing altogether. “This won’t outlaw dynamic pricing,” she explained, “It’s just introducing transparency and certainty because there is a place for the market as well.” She emphasized the need for fairness, especially during a cost-of-living crisis that has left many consumers struggling.

    The bill has already passed its first reading in the House of Commons, a procedural step that does not involve a debate. According to Sky News, it has garnered cross-party support, but its future remains uncertain without government backing. Ministers have pledged to launch a consultation on the secondary ticket market later this autumn, but the outcome of this review will likely shape whether the bill can progress in its current form.

    Despite the uncertainty, Ms. Huq remains committed to championing the rights of concertgoers. “It’s high time that this happened because fans just shouldn’t be ripped off,” she said, noting that many industry groups and consumer advocates have long called for greater regulation.

    Source: Sky News