Question

Course: Business Law

Richard wishes to purchase a ticket to the Lady Gaggle concert in Canberra on 23 August 2021. Tickets were originally on sale for $480.00 each however when Richard rang CC he was told that the ticket prices had increased by 40% due to COVID -19 related additional costs. This claimed increase in costs associated with arranging the Lady Gaggle concert was not true. Richard wants to know whether there is any action that can be taken under the ACL to have the increased cost of his ticket reimbursed and ensure that other concert goers are not mislead in the same way.

   

Advise Richard

Answer 1

In the above mentioned scenario CC violated Australian consumer law and Richard has is right for the reimbursement against his consumer guarantee provided by ACL.
There are rules under ACL about how prices are charged and conveyed to the customer. Businesses cannot make misleading price claims. When Richard called cc about asking the ticket price for the Lady Gaggle concert in Canberra on 23 August 2021 and they told him that the ticket prices have been increased by 40% due to covid-19 which was not true. This practice by CC was unethical and the violated the Australian Consumer Law as according to the ACL, Business cannot charge customers extra like this. Prices should be genuine.

Richard's money is covered under ACL consumer guarantees. These include his rights to a repair, replacement or refund as well as compensation for damages and loss and being able to cancel the service as well.

I will advise Richard,

In order to get the reimbursement and prevent CC to mislead the other concert goers in the same way as they did mislead Richard, he should file a complaint with ACCC (Australian competition & consumer commission) for charging extra money unethically from his customers. In order to prove his allegation Richard also has to show the copy of receipt or some other proof of purchase.

After that ACCC will investigate his complaint and take necessary enforcement actions including reimbursement of Richard's payment pertaining to tickets as well as any remedy against damages he suffered because of cc (if any) and they will also take necessary action to prevent CC from misleading other concert goers in the same way they misled Richard.