(Bloomberg) -- Live Nation Entertainment Inc’s Ticketmaster is facing a UK investigation over the recent sale of tickets for Oasis concerts, after widespread complaints about the use of dynamic pricing that saw fans paying more than £350 ($461) to attend.
The Competition and Markets Authority said it’s looking at whether the sale of tickets for the band’s gigs next year breached consumer protection laws. The watchdog will also scrutinize whether Ticketmaster fairly used dynamic pricing, where the cost of the tickets change depending on demand.
“It’s important that fans are treated fairly when they buy tickets, which is why we’ve launched this investigation,” Sarah Cardell, Chief Executive Officer of the CMA. “It’s clear that many people felt they had a bad experience and were surprised by the price of their tickets at check-out.”
What Is ‘Dynamic’ Pricing and How Does It Work?: QuickTake
In a letter written to the government and published earlier on Thursday Cardell said that while the practice of dynamic pricing isn’t “itself unlawful,” companies need to be careful not to mislead consumers.
“We are committed to cooperating with the CMA and look forward to sharing more facts about the ticket sale with them,” Ticketmaster said in an emailed statement.
The investigation into sale of Oasis tickets is at an early stage and the watchdog will now gather evidence from those involved and the public. Ticketmaster spokespeople didn’t immediately respond to an email seeking comment.
“It should not be assumed that Ticketmaster has broken consumer protection law. The CMA will also consider whether it is appropriate to investigate the conduct of anyone else in relation to the matter,” the watchdog said.
The rock band’s reunion after 16 years apart was mired in controversy as fans complained of being asked to pay over £350 for a ticket initially advertised as costing £148.
The investigation will consider whether people were pressured to buy more expensive tickets in a short period of time and whether they were given clear and timely information about dynamic pricing.
The CMA has set a Sept. 19 deadline for the gathering of information.
(Updates with Ticketmaster comment in the fifth paragraph.)
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