EU Commission: European Parliament to Investigate Use of ‘Variable Pricing’
“Ticket vendors are illegal if they do not provide sufficient important information”
British PM Starmer hints at capping ticket prices at Oasis concert
As ticket prices for the famous British band Oasis are skyrocketing, the European Union (EU) has announced an investigation, following British Prime Minister Keir Starmer. Oasis, who have become a hot topic for their reunion after 15 years, were called the ‘Emperors of Britpop’ and enjoyed worldwide popularity in the 1990s and 2000s.
According to the Guardian, the European Commission is conducting an emergency review of the Oasis concert on the 4th (local time). The European Commission confirmed to the media through a spokesperson that “we are investigating the use of variable pricing in relation to concert ticket prices, following growing concerns among MEPs.”
“While variable pricing itself is not illegal, if the price of a product increases after a consumer has placed a ticket in their shopping cart, this practice may violate EU directives. If a ticket sales website does not provide important information to fans who want to purchase tickets in advance, it may violate EU law,” he explained.
Dynamic pricing is a sales technique that adjusts prices in real time according to changes in supply and demand, and is increasingly used in various industries such as accommodation, airline, and insurance. Ride-sharing company Uber, accommodation-sharing company Airbnb, and e-commerce company Amazon also use the same pricing method to change prices in real time at specific points in time according to consumer demand.
“We want new laws to protect European consumers from this type of price hike,” European Parliament MEP Lara Wolters told the Guardian. “The only winners in this situation are the big ticket sellers. Fans can’t go to concerts because of the prices.”
“This system is not about maximising entertainment by filling stadiums with passionate fans of artists, but is about maximising revenue from music like any other commodity,” said Ms Wolters. “As a music fan, I want to stop this heartless practice. I am pleased that the UK government is looking into this and I hope that the new EU Commission will follow suit and introduce new rules on unfair ticket sales.”
The European Parliament is expected to address the issue by banning or relaxing variable pricing.
The UK Competition and Markets Authority (CMA) announced yesterday that it was urgently reviewing the use of variable pricing in relation to Oasis concert tickets. A CMA spokesperson warned: “Consumer law requires companies to be fair and transparent in their dealings with consumers. They must provide clear and accurate information about what consumers are paying for. Failure to do so could be breaking the law.”
The UK government is considering making ticket sellers more accountable for the details they advertise, including the prices they charge. The CMA is said to be considering giving it more powers to regulate sellers who change prices at the last minute before a customer pays for a ticket.
The CMA has previously called for the introduction of a ticket resale licensing system to correct the market by imposing significant fines for bad practices.
Prime Minister Starmer appeared on BBC Radio 5 on the 2nd and said that he was considering regulations such as introducing a price cap as the ticket prices for Oasis concerts were abnormally rising.
Lisa Nandy, the UK’s culture secretary, added: “We want to put an end to the reselling of trinkets.”
The controversial ticket seller argued that dynamic pricing is similar to airlines and hotel companies raising their prices based on demand, and that prices are set by musicians and their management companies.
Variable pricing techniques are within the legal realm, but there are few clear regulations on the subject, making it difficult to regulate them. English law does not limit the timing of advance notice of price changes or the amount of price changes.
On the same day, the British regulator disclosed that it had received 450 complaints regarding the sudden increase in ticket prices from 148 pounds (about 260,000 won) to 355 pounds (about 620,000 won) after Oasis concert tickets went on sale on the morning of the 31st of last month. Hundreds of people who complained about the damage filed complaints with the Advertising Standards Authority (ASA).
Black market tickets targeting people who are unable to get tickets are also popular. Tickets, which are officially sold for 73 to 506 pounds (about 130,000 to 890,000 won), are being sold for 916 to 6,000 pounds (about 1.61 million to 10.55 million won).
Formed in 1991, Oasis had seven studio albums that all reached number one on the UK charts until their breakup in 2009 due to feuding between brothers Noel and Liam Gallagher. Oasis have sold over 75 million albums worldwide.
Oasis, who announced their return on the 27th of last month, announced a tour schedule for next July. The tour, which starts in the UK, will begin in Wales in July of next year, then go on to Manchester, London, and Edinburgh, and end in Dublin, Ireland.
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2024-09-05 21:07:23