Dáil debates

Tuesday, 8 October 2024

Sale of Tickets (Cultural, Entertainment, Recreational and Sporting Events) (Amendment) Bill 2024: First Stage

 

3:40 pm

Photo of Jim O'CallaghanJim O'Callaghan (Dublin Bay South, Fianna Fail)

I move:

That leave be granted to introduce a Bill entitled an Act to amend the Sale of Tickets (Cultural, Entertainment, Recreational and Sporting Events) Act 2021 so as to prohibit a primary ticket seller from engaging in dynamic pricing when selling, or advertising for sale, tickets or ticket packages for cultural, entertainment, recreational and sporting events, and to promote fairer access to tickets by prohibiting the sale, or advertising for sale, of tickets or ticket packages for a price that is adjusted or set by dynamic pricing to meet increased demand.

This Bill has been drafted by my friend, Deputy Niamh Smyth, and me. The Leas-Cheann Comhairle will be aware that, back in 2021, the Houses of the Oireachtas enacted the sale of tickets Act, the purpose of which was to enhance fairness when it came to the sale of tickets for entertainment or sporting purposes. What that Act sought to do in effect was to outlaw the role of ticket touts when it comes to selling tickets for sporting or entertainment events. It has achieved its objective. The legislation enacted back in 2021 specifically refers to prohibiting the sale by a “secondary ticket seller”, which is the technical term for ticket touts.

However, another issue has arisen and, unfortunately, it also requires intervention by the Houses of the Oireachtas. It relates to a new form of ticket selling that in our opinion is completely unfair and against the interests of the consumer, namely, the practice of selling tickets by a primary ticket seller by means of a dynamic pricing method. Dynamic pricing arises where a primary ticket seller adjusts or sets prices for tickets in real time based on the application of algorithms that take into account historical sales data, current demand trends, venue capacity or performer popularity. The effect of selling tickets by dynamic pricing is the primary ticket seller is able to identify how much demand exists for the sale of these tickets after they go on sale in real time. The primary seller is able after that to try to identify how much money can be used for the purpose of ensuring the maximum amount of money is extracted for the primary ticket seller. In practical terms this means an individual is attracted into the sales process by being invited to purchase tickets that will commence at a certain price. However, once the individual is in the process and the sales process has commenced in real time, they will find themselves, unfortunately, after having spent one or two hours on the system, being offered tickets for sale at a price that grossly exceeds the price at which they were invited to participate.

The effect of the Bill proposed here is that we would prohibit such a practice. Obviously it is the case, as Deputy Smyth and I recognise, that if a performer or sporting organisation wishes to charge a very high price for event tickets, they are entitled to do that. What we think is unfair and should not be permissible is the circumstances where a performer, primary ticket seller or sporting organisation does not inform the public at the outset the price the tickets may go for, but instead attracts the consumer into the sales process at an early stage based on a price not reflective of the ultimate price for which tickets will be sold.

This issue came to light recently in respect of the sale of tickets for the Oasis concerts, but it is important to point out the issue of dynamic pricing is something that is quite common in the United States of America. That country is perfectly entitled to have that practice there if it so wishes, but for the purpose of consumer protection and enhancing the rights of the consumer, it would be appropriate if this type of sales practice were outlawed in Ireland. Our consumer protection laws currently contain a prohibition on unfair or misleading commercial practices. Deputy Smyth and I think what is being offered by way of dynamic pricing fits within both of those categories because it is clearly, we submit, unfair but also misleading. Persons are attracted in at an early stage, as was the case with the Oasis concerts. They were told tickets were going to go for in the region of €160.

Then when it came to the end of the process, after about three or four hours waiting online people were offered tickets for in the region of €420. That is unfair on the individuals who came in and sought to avail of this process. If it is not the case that this practice is misleading or unfair, then we say the Oireachtas should intervene in order to protect the interests of the consumer. We believe this would be an additional protection for the consumer and the current practice of dynamic pricing, which is starting in Ireland, should not be allowed to gain traction. If people want to sell tickets at a very high price let them do so but let them announce it at an early stage. That is why we are asking for leave to introduce this Bill.

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