Balancing demand and fairness: Dynamic pricing in live events

The use of dynamic pricing in sporting and live events is becoming increasingly prominent. Earlier this month, FIFA announced that tickets for the 2026 World Cup, co-hosted by the United States, Canada and Mexico, will be sold using a dynamic pricing model. This model is more commonplace in the United States (and has already been adopted for major sporting events such as the NFL’s Super Bowl), but isn't as well established in Europe for events, as demonstrated by UEFA’s confirmation that it won't implement dynamic pricing for the sale of tickets for the 2028 European Championship on these shores. 

Dynamic pricing has been headline news in the UK since last summer, following public outcry over Ticketmaster’s pricing strategy for the Oasis reunion tour. This resulted in the Competition & Markets Authority (CMA) launching a general review of dynamic pricing practices across sectors of the UK economy in November 2024 (which we examined in this blog post), and on which it recently produced an update on its findings, as well as guidance for businesses to help comply with their legal obligations when using such a ticketing model in the UK.

The CMA separately launched an investigation into Ticketmaster specifically in September 2024 (see our blog post here). That investigation has recently concluded, with Ticketmaster agreeing to provide various voluntary undertakings around the pricing information it provides to customers, but it should be noted that the use of dynamic pricing is not one of them. Somewhat surprisingly given the furore, the CMA has confirmed that it found no evidence to suggest that dynamic pricing was actually involved in this case.

How does dynamic pricing affect consumers? 

In the CMA update it emphasised that, at least in principle, dynamic pricing can offer potential benefits to businesses in terms of revenue optimisation and demand management, but also support positive consumer outcomes provided that the audience are clearly informed about when and why prices may fluctuate. Transparency around pricing mechanisms, including rationale for changes and how prices may evolve over time, can help consumers plan their expenditure more effectively. 

The CMA did, however, note that some of these benefits may be more limited for one-off live events such as concerts or sports fixtures, where consumers typically have limited alternative choices and there may be pressure to make a rapid purchasing decision, driven by concerns that prices may rise during the booking process. This is particularly relevant in high-demand scenarios, such as ticket sales for popular live events - the 2026 World Cup being a notable example. 

What does this mean for businesses? 

The CMA is clear that UK consumer law does not prohibit the use of dynamic pricing per se. However, businesses that choose to adopt such practices must ensure that their pricing models and other important information are clearly and transparently communicated to consumers at the most relevant point(s) in the purchase journey and do not put consumers under unnecessary unlawful pressure to buy. The CMA has identified several types of information that could be considered key information that consumers need to know: 

• a clear statement that prices are subject to change and aren't static
• an explanation of factors driving these changes (for example, whether prices increase as the date of an event approaches)
• a range of potential prices (such as minimum and maximum amounts) to help assess whether a product or service may become unaffordable if a consumer delays their purchase. 

The CMA has also emphasised that businesses should:

• explain important terms where the meaning may be unclear and/or ambiguous from their perspective
• consider the needs of vulnerable consumers based on the likely audience, and what additional help can be provided to them
• avoid putting undue or unfair pressure on customers to make snap decisions if prices are changing
• refrain from changing prices while the customer is paying eg the price a customer is shown when they click “buy” should not be changed while they are subsequently paying.

Pricing transparency

How pricing is displayed to consumers is one of the key areas of focus of the CMA currently. It also produced draft “price transparency guidance” for consultation this summer (which we discussed here; the deadline for submissions recently closed on 8 September) relating to traders’ obligations under the Digital Markets, Competition and Consumers Act 2024 (DMCCA 2024) when making “invitations to purchase” – namely any time information is given to consumers about a product and its price. 

These include a requirement to disclose all “material” pricing information upfront in order that consumers can make informed purchasing decisions. In the context of dynamic pricing, as set out above, information about how a pricing model works is likely to be considered such material information. However, the draft guidance also confirms that practices such as drip pricing and partitioned pricing are generally prohibited. In the context of ticket sales (and not just those involving dynamic pricing), businesses must, therefore, ensure that headline ticket prices reflect the true minimum cost to the consumer, including any unavoidable fees such as booking charges or venue surcharges. 

The finalised pricing transparency guidance is expected some time later this year. In the meantime, there is also the “Guidance for Traders on Pricing Practices” to consider. This document was recently updated by the Chartered Trading Standards Institute in light of the introduction of the DMCCA, and focuses on “helpful, common-sense guidance” for traders about pricing practices to try and avoid falling foul of consumer protection legislation in this area, including the areas discussed above. 

Why is such guidance important?

These documents, and the attempts traders have made to comply with them, are relevant factors that regulators and courts will take into account when considering potential breaches of the relevant legal requirements. In particular, the CMA has highlighted that where it identifies egregious practices that constitute a breach of consumer law, it's committed to using its enforcement powers under the DMCCA 2024. The consequences of non-compliance are significant, with potential sanctions including direct fines of up to 10% annual global turnover without the need for court proceedings. 

Conclusion

As the CMA continues to scrutinise pricing practices across sectors, businesses operating in the live events space should review their pricing disclosures carefully. Ensuring compliance not only mitigates legal risk but also supports consumer confidence and market integrity. 
More generally, the CMA’s recent consultation on their guidance price transparency further underscores the growing regulatory focus on ensuring that customers receive clear, complete and timely pricing information. When coupled with its increased enforcement powers, never has it been more important to review your consumer journey to ensure that customers understand exactly how and what they are being asked to pay.