NSW Government Introduces Bill To Prevent Ticket Scalping, Set 3 Year Minimum For Gift Cards

Friday 13 October 2017 @ 11.59 a.m. | Legal Research | Trade & Commerce

The NSW Government has introduced a bill to amend the Fair Trading Act 1987 (NSW) that aims to combat ticket scalping, and introduce rules about the expiry of gift cards.  The Fair Trading Amendment (Ticket Scalping and Gift Cards) Bill 2017 was introduced into the NSW Legislative Council on 11 October 2017 by Mr Scot MacDonald, on behalf of the Hon. Sarah Mitchell.  The Bill is part of a suite of “Consumer First” reforms currently being proposed by the NSW Government.

Ticket Scalping

In his second reading speech, Mr MacDonald said:

“The bill responds to growing consumer dissatisfaction with New South Wales ticket markets for sporting and entertainment events. There is a widespread feeling among members of the public who love sporting events and live entertainment that the ticketing game is rigged against them.”

The Bill contains five key measures designed to combat ticket scalping:

  • Setting a cap on the resale markup of tickets at 10%, plus any “reasonable transaction costs” involved in the sale such as credit card surcharges and booking fees.  Ticket sellers will also be prohibited from making the compliant supply of a ticket (ie. under 110% of the original price) contingent on the buyer making a secondary purchase.
  • Banning the use of bots in acquiring tickets
  • Improving transparency in the resale market by requiring permitted ticket resale advertisements to specify the original price of the ticket, and the details of the location from which the ticket holder is authorised to view the event (such as the bay, seat or row number)
  • Improving transparency in the primary market by providing that the Minister for Fair Tradng may, by order published on the NSW legislation website, require a event organise to five notice of the number of tickets that will be made available for sale to the general public.  According to the second reading speech:

“The Government's intention is that these orders will be made only in the case of major events that are likely to sell out and to be the target of scalpers. The Minister may well make the order for an Ashes test match, a National Rugby League [NRL] grand final or a concert by a major international touring artist such as the Rolling Stones. The purpose of this power is not for it to be used for normal NRL matches, Sheffield Shield cricket, or small live events at a local pub.”

  • Enforcement by industry participants and NSW Fair Trading.  Industry participants will be able to access remedies under the Australian Consumer Law, including by recovering damages in court.  NSW Fair Trading will also be able to enforce the new requirements, with penalties of up to $22,000 for an individual or $110,000 for corporations who breach these requirements.

Gift Cards

In his second reading speech, Mr MacDonald said:

“The amendments in this bill will put consumers first. Time and again consumers have said that they are experiencing issues with gift cards expiring with value left on them. These issues are turning the delight of receiving a present on a special occasion into an unwelcomed headache for recipients. This is not good enough. The 2016 Australian consumer survey named gift cards as a top 20 product where consumers had concerns. The Government recognises that although gift cards are meant to be convenient and easy to use, consumers sometimes find it difficult to redeem gift cards, having to overcome unnecessary hurdles only to be met with no positive outcome. Consumers have made it clear that they want to be able to use a gift card when it suits their lifestyle and commitments.”

The Bill will prohibit a gift card being sold in NSW with an expiry date that is less than three years from the date of sale.  Any gift card with an expiry date sooner than three years will be have this expiry deemed void, and the expiry will be taken to be three years after the sale of the card.  Businesses will also not be able to impose fees or charges for redeeming the gift card.  The provisions will only apply to traders who are capable of satisfying the gift card obligations to people in NSW, and there will be exemptions for online sales and phone sales where the address for delivery or the customer’s contact details suggest a customer is outside NSW.

TimeBase is an independent, privately owned Australian legal publisher specialising in the online delivery of accurate, comprehensive and innovative legislation research tools including LawOne and unique Point-in-Time Products. Nothing on this website should be construed as legal advice and does not substitute for the advice of competent legal counsel.

Sources:

Fair Trading Amendment (Ticket Scalping and Gift Cards) Bill 2017 (NSW), Explanatory Notes and Second Reading Speech - available from TimeBase's LawOne service

Media Release: Ticket scalping reforms to curb price gouging (NSW Government, 11 October 2017)

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