The Australian government is intensifying its efforts to address the issue of dynamic pricing, hidden fees, and "drip pricing" within the live music ticketing sector. This comes after fans purchasing tickets for Lady Gaga's concerts in Sydney and Melbourne experienced a dramatic increase in prices shortly after general sale began. Arts Minister Tony Burke emphasized that unexpected costs at the end of transactions should not occur, and Prime Minister Anthony Albanese reaffirmed the commitment to eradicate such practices. Fans faced initial advertised prices ranging from $113.06 to over $1,500, but these quickly surged beyond quadruple the original amount.
Recently, Live Nation, the parent company of Ticketmaster, announced additional tickets for a second Sydney concert would be available on April 22nd. Despite this, both Ticketmaster and Ticketek have denied employing dynamic pricing strategies for the Australian leg of Lady Gaga's tour. A spokesperson from Ticketmaster stated that all prices were predetermined before the sale commenced and set according to individual seat levels. However, questions remain regarding the allocation of lower-priced seats prior to the public sale.
Before entering caretaker mode, the Labor government was actively consulting on ways to prohibit unfair trading practices such as subscription traps and drip pricing. Assistant Treasurer Stephen Jones highlighted in November that these practices disproportionately affect consumers financially. Recommendations from a recent parliamentary inquiry into the live music sector suggest amending consumer law to enhance fee transparency and limit extreme price variability due to dynamic pricing. Furthermore, the inquiry recommended the ACCC monitor the industry for anti-competitive conduct.
Sarah Hanson-Young, a Greens senator who participated in the inquiry, criticized multinational corporations for exploiting live music fans during an economic crisis. She stressed the importance of ensuring fairness for local artists and venues. While the ACCC has not commented on any specific instructions from the government, it previously expressed interest in the US Department of Justice's lawsuit against Live Nation.
Nitika Garg, a professor specializing in consumer behavior at UNSW Business School, suggested that outlawing dynamic pricing could empower the ACCC to scrutinize confidential data and algorithms used by ticketing companies. She noted that confirming the practice requires evidence of significant price discrepancies for identical seats purchased at different times. From a consumer standpoint, dynamic pricing exacerbates anxiety about securing seats and understanding potential financial commitments.
In response to mounting concerns, the Australian government continues to explore legal avenues to protect consumers from exploitative pricing tactics in the live music industry. The proposed measures aim to promote greater transparency and ensure fairer outcomes for both fans and artists alike. By addressing these issues, the government hopes to restore trust in the ticketing process while fostering a more equitable environment within the live entertainment sector.