The Department of Enterprise warned that any plan to ban dynamic pricing following the controversy over the sale of Oasis tickets last August “could have far reaching implications” across multiple sectors including hotels and aviation.
The warning was issued in briefing notes as the extent of customer disquiet over the ticket sale mounted last September. However, the department has insisted that the view does not pre-empt the outcome of an investigation into dynamic pricing being conducted by the consumer watchdog.
Tickets for two Oasis concerts scheduled to take place in Croke Park this August went on sale on the Ticketmaster platform at the end of the summer, with demand massively outstripping supply.
Many fans were horrified when they saw dynamic or “in-demand” pricing was being used as the first day of the sales progressed. The pricing model caused ticket prices to jump sharply over the course of the day, with some standing tickets climbing by hundreds of euro during the frantic sale.
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At the time Tánaiste Micheál Martin described the price rises as “quite shocking” and he called on the Competition and Consumer Protection Commission (CCPC) to carry out an investigation. It subsequently confirmed an investigation had begun after it received more than 100 complaints from consumers.
The chairman of the commission, Brian McHugh, noted at the time that “companies in Ireland are allowed to respond to market demand [but] there are legitimate concerns over how consumers were treated”.
Oasis subsequently said it had at “no time had any awareness” that dynamic pricing was being used to sell tickets to its sold-out shows in Ireland and Britain. The practice was discontinued for subsequent ticket sales for concerts in other parts of the world including the US and Australia.
[ Oasis tickets controversy: Is ‘dynamic pricing’ any better than touting?Opens in new window ]
Separately, as the department worked to get on top of the issue, officials warned Minister Peter Burke that a ban on the use of dynamic pricing could have unintended consequences in other sectors.
The briefing notes, obtained under Freedom of Information legislation, suggested that the department would be cautious about a ban and said “a full policy analysis by officials would be required before any decisions were made”.
A spokeswoman for the department denied that the view of the officials regarding a full policy analysis of the practice being needed undermined the CCPC investigation. She noted that while the CCPC falls under the under the remit of the department, it “is independent in the delivery of its functions”.
She said the watchdog’s investigation is a separate process to a policy analysis that may be carried out by officials. Once the CCPC’s report is received, she added, “department officials will consider if further policy or legislative change is required”.
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