While the secondary ticket market offers added convenience for Australian consumers such as yourself, it is not without its risks. If you purchase resold tickets, you incur substantial risk. For example, event coordinators may cancel the resold ticket you have bought. Additionally, the resold ticket you bought may not be legitimate. In the Australian market, ticket scalpers profit by selling tickets at inflated prices. You will also come across ticket onsellers who offer unused tickets at face value. As such, you should be cautious when buying resold tickets. You should be aware of several key risks when buying resold tickets. These include the authenticity of the tickets, potential cancellations of the tickets and price increases. Your awareness and careful consideration of the resale platform, ticket legitimacy, and pricing are crucial to ensuring a secure ticket purchase experience. This article will explore the risks involved when reselling tickets and provide useful tips to consider when purchasing resale tickets.
Rules and Legislation Governing Resale Tickets
From 1 June 2018, New South Wales (NSW) introduced distinctive ticket-selling laws, setting it apart from the rest of Australia. In NSW, it is now against the law to resell tickets above an asking price of no more than 10 per cent above the original ticket cost. This regulation aims to protect consumers by preventing the cancellation of tickets resold at or below face value plus 10% by event organisers.
Any advertisement to resell a ticket in NSW must include the following:
- the original ticket cost;
- an asking price no more than 10 per cent above the original ticket cost; and
- the location of the bay, row, seat number, general admission or similar attached to the ticket.
The Australian Consumer Law contains different provisions that can be used to address issues associated with ticket reselling and ticket scalping. This includes:
- misleading and deceptive conduct;
- false and misleading representations;
- unconscionable conduct; and
- bait advertising.
Viagogo Case
In 2017, the Australian Competition & Consumer Commission (ACCC) initiated legal proceedings against the ticket reselling platform Viagogo. The ACCC alleged that Viagogo utilised deceptive practices in the resale of tickets for live music and sports events. In 2019, the Federal Court found that Viagogo had engaged in false and misleading conduct. The Court reasoned that Viagogo had held themselves out as the ‘official’ ticket seller for specific events. This, the Court felt created a misconception about ticket scarcity and implied that consumers such as you could secure tickets at specified prices.
Consequently, the Federal Court ordered Viagogo to pay a fine of $7 million. This legal action demonstrates why stakeholders in the ticket resale industry must act transparently and honestly.
Ticket Sellers Obligations
Ticket sellers have an obligation to:
- refrain from making inaccurate or deceptive statements regarding the event, ticket availability, or claiming to be the authorised ticket seller for a particular event;
- verify that the ticket aligns with the information presented on the website, ensuring accuracy in details such as the assigned seat or venue; and
- disclose all costs and pertinent details to consumers, including information on restrictions like obstructed views from specific seats or special entry conditions.
Risks to Consumers When Purchasing Resale Tickets
Some of the key risks you as a consumer face when purchasing resale tickets include the:
- lack the information required to make informed purchasing decisions;
- risk your tickets potentially may be cancelled; and
- risk becoming the victim of potential scams and fraud.
1) Lack of Information Required to Make Informed Purchasing Decisions
Having insufficient information can hinder you from making well-informed purchase decisions. If you have insufficient information, selecting the right website or platform for ticket acquisition is much harder. You are well advised to prioritise official sources when purchasing tickets for an event. Official sources include, the artist’s, sports team’s or event promoter’s website. Additionally, the venue hosting the event, also classifies as an official source.
For example, Taylor Swift is currently the top artist on Spotify. During the presale for her highly anticipated 2024 Sydney and Melbourne shows, over 4 million users sought access to tickets. Given the immense demand, it is strongly recommended to procure tickets only from legitimate sources. Purchasing tickets through unauthorised channels may result in disappointed fans being turned away at the event’s entrance. Likewise, these fans may find their seats unavailable.
2) Cancelled Tickets
If you obtain tickets from a primary ticket seller, your purchase typically comes with multiple sets of Terms and Conditions attached. These T’s and C’s may explicitly prohibit any resale of the tickets. Consequently, if you purchased any resale tickets, you risk your tickets being cancelled. When you engage with ticket resellers, you should carefully review their terms and conditions. Specifically, you will want to check if they offer you any buyer protections.
For example, say you purchased a ticket not from an official source; you have opened yourself up to great risk. Event organisers may choose to cancel your ticket if they discover it has been resold in violation of the ticket’s terms and conditions. As such, you should exercise diligence in understanding and adhering to the stipulations outlined in the ticket’s terms and conditions. This will help you to avoid any potential issues.
3) Scammers and Fraudulent Behaviour
To ensure your ticket is valid, you should purchase directly from the official ticket seller. However, should you decide to purchase from a reseller, there are several things you should consider. For example, you should consider whether the tickets are:
- valid for entry;
- sold at the original value; and
- that the terms and conditions provided by the official ticket seller apply.
Unofficial websites, online marketplaces, and social media platforms are often breeding grounds for scammers. For example, an overzealous fan might fall victim to a scam and purchase a ticket through a questionable online marketplace. Subsequently, they may receive unofficial or duplicate tickets.
To avoid such pitfalls, be vigilant for warning signs. Ask yourself these questions to determine if the offer appears to be a scam:
- Does the transaction feel rushed?;
- Is the deal too good to be true?;
- Has the seller got a good reputation?; and
- Are you using a secure payment method to complete the transaction?
Checklist to Consider Before Purchasing Tickets
Before purchasing a ticket, you should consider checking the following:
- verify the details on the official website or promotional materials from the event organiser or venue;
- confirm if there is an authorised ticket reseller designated for the event;
- be cautious if tickets are available before the designated sale or resale date, as they may be counterfeit;
- ensure you are purchasing tickets from a secure website;
- check for any restrictions associated with the purchased ticket;
- confirm that the ticket provides comprehensive details such as the event’s location, date, and time, as well as specific information like bay, row, seat, or general admission; and
- for residents of New South Wales, in accordance with regulations, the resale ticket price must not exceed 10 per cent of the original ticket price.
This guide will help you to understand your corporate governance responsibilities, including the decision-making processes.
Key Takeaways
Both buying and selling tickets carry inherent risks, necessitating the need for a keen awareness of regulations outlined in the Australian Consumer Law and specific laws applicable in New South Wales. To safeguard against potential pitfalls, consumers are strongly recommended to opt for reputable resale platforms, meticulously confirm the legitimacy of tickets, exercise caution regarding pricing, and ensure a thorough understanding and adherence to the terms and conditions associated with ticket transactions. These proactive measures are essential for mitigating risks and promoting a positive experience in the realm of ticket resale.
If you are in the entertainment or sports industry and want to know how to provide your customers with a safe option to purchase resale tickets, contact our experienced marketing compliance lawyers as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
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