Dynamic pricing has long been a controversial practice in various industries, particularly in entertainment and events. The consumer resentment it has generated has led to the federal government taking steps to curb it, marking a significant move to protect consumers from what is seen as unfair trading practices.
What is Dynamic Pricing?
Dynamic pricing, also known as surge pricing or demand pricing, is a strategy where the price of a product or service is adjusted based on current market demand. Companies use algorithms that factor in variables like consumer demand, competition, time of purchase, and availability to set real-time prices. While this practice is commonly associated with airlines and rideshare services, it has increasingly made its way into event ticketing, including concerts and sporting events.
In the context of concerts in Australia, dynamic pricing can cause ticket prices to fluctuate dramatically. When a popular artist announces a tour, the initial wave of high demand can cause ticket prices to skyrocket within minutes. Fans who log in later may find that the prices have significantly increased from the original face value, making it difficult for average consumers to afford tickets.
Effects of Dynamic Pricing on Consumers
The practice of dynamic pricing has been criticised for creating an uneven playing field for consumers. The following are some of the primary effects dynamic pricing has left on the public.
Price Unpredictability
Dynamic pricing creates a sense of unpredictability around ticket prices. Consumers often don’t know what they will end up paying, as prices can change from one moment to the next. This lack of transparency can lead to frustration and dissatisfaction among buyers, who feel they are being unfairly charged based on fluctuating demand.
Exclusion of Average Consumers
One of the most significant criticisms of dynamic pricing is that it caters to those who can afford to pay higher prices, effectively shutting out average consumers. For concerts in Australia, this means that loyal fans of an artist might miss out on tickets simply because they cannot keep up with the rapidly rising prices.
Increased Resale Prices
Dynamic pricing contributes to the inflation of ticket prices on resale platforms. Scalpers and ticket resellers often use bots to purchase tickets at lower prices, only to resell them at a significant markup. This drives the overall cost of attending an event even higher, making it difficult for genuine fans to secure tickets at reasonable rates.
Perceived Unfairness
Consumers often perceive dynamic pricing as a form of exploitation, especially when they see significant price discrepancies for the same product or service. In the case of concerts, fans who purchase tickets early may feel cheated if they later discover that others secured the same tickets for a lower price.
Government Crackdown on Dynamic Pricing in Event Ticketing
Responding to growing public dissatisfaction and concerns about fairness, the federal government has announced plans to ban dynamic pricing in certain sectors, particularly for event ticketing. This move aims to create a more transparent and equitable market for consumers and to put an end to practices that are seen as manipulative and unfair.
The Trigger
The Australian Broadcasting Corporation’s (ABC) investigative show, Four Corners, aired an exposé on dynamic pricing, highlighting its impact on consumers and the lack of regulation surrounding it.
Airing on 14 October 2024, the show revealed that events company Live Nation’s Ticketmaster tickets service and a rival outfit, Ticketek, were programming hidden fees within the overall ticket price for an event. The most recent occurrence of this in Australia was Ticketmaster’s sale of tickets for American band Green Day’s Australia tour in March 2025, some of which set back fans up to $500 each. Some Australian musicians claimed in the episode that none of the extra charges billed for tickets to their own shows were furnished to them, which they hoped for additional income.
The news came after Live Nation announced plans to expand the practice to other events such as the Australian Grand Prix and the Australian Open. Ticketmaster is already facing similar revulsion in the UK for implementing dynamic pricing for the reunion tour of iconic rock band Oasis. This includes adding more fees to ticket buyers who waited hours in the online queue for their turn.
Arts Minister Tony Burke said in the episode that the practice had always been around, but Assistant Treasurer Stephen Jones emphasised the new exposé is setting off the government in the necessary direction.
The situation also brought forth a class-action suit by Gordon Legal against Live Nation and Ticketmaster.
Action
The federal government’s interest to ban dynamic pricing is part of a major shakeup designed to stop unfair trading practices. Aside from dynamic pricing, the government also identified five other trading practices that also affected prices and therefore needed similar action:
- Subscription traps, or confusing procedures that actually complicate cancellation of subscriptions.
- Drip pricing,or Sellers adding more fees during each phase of a purchase.
- Online practices that actually confuse or overwhelm consumers using manipulative triggers such as limited-time discounts, while also omitting or hiding important customer disclaimers.
- Not allowing consumers to make purchases in an online marketplace without opening an account there and providing unnecessary information.
- Deliberately being out of contact when customers seek help on a customer-support line.
The Australian Treasury is aiming for consultation on the matter before preparing associated legislation.
The federal government’s crackdown on dynamic pricing is particularly significant for the entertainment industry. Concerts in Australia have been some of the most heavily impacted by dynamic pricing, with fans often priced out of attending shows by their favourite acts due to steep ticket costs. The new regulations will aim to make concerts more accessible to the general public, ensuring that everyone has an equal chance to enjoy live events without being penalised by fluctuating prices.
Mixed Reactions to Dynamic Pricing Exposé
The above Four Corners episode has received a mixed bag of responses. A Live Nation statement claimed that the ticketing system does comply with Australian Consumer Law and the additional fees actually support associated services such as marketing and consumer protection. Live Nation Australasia president Michael Coppel said the episode singled out Ticketmaster and Ticketek for using the same business model. Interviewed for the Financial Times, Griffith University cultural sociologist Ben Green said it was odd for the government to think about stopping dynamic pricing for concert tickets when airlines and hotels also use the system for customer bookings.
Conclusion
The federal government’s proposed ban on dynamic pricing marks a pivotal moment in the fight against unfair trading practices in Australia. By taking a stand against the unpredictable and often exploitative nature of dynamic pricing, the government is working to create a more equitable environment for consumers, especially in the entertainment sector.
While some industry players may face challenges in adjusting to these new regulations, the overall impact is expected to be positive for Australian consumers. With greater transparency, fairer pricing, and reduced exploitation, fans may look forward to a more straightforward ticket-buying experience for concerts and events across the country.
DISCLAIMER: This article is for informational purposes only. The data presented is based on the most accurate information at the time of writing. 2 Ezi has no business partnerships with any Australian TV network, federal government office, or ticketing company.
