The move to stop ticket price gouging of Australian consumers has taken a big step forward. The Australian divisions of Ticketek and Ticketmaster have both committed to improving their pricing practices, following an investigation by the Australian Competition and Consumer Commission (ACCC) into “drip pricing”.

The inquiry was launched last February following complaints from customers and consumer rights advocates regarding the hidden fees progressively “dripped” into price totals during the course of online ticketing transactions.

In addition to the price of the ticket, it has now become common practice for ticketing outlets to add separate booking fees and charge customers for printing their own tickets. The controversial practice means consumers often end up paying more than the advertised price for tickets to events.

The ACCC’s investigation focused on the 1.95% payment processing fees charged by Ticketek and Ticketmaster on top of advertised ticket prices. According to The Music Network, Ticketek charges $8.95 for service/delivery and Ticketmaster adds $8.35 for handling.

The commission announced yesterday that the full price of a ticket — including normally dripped-in compulsory fees and charges — must be prominently stated from the outset and that any later charges mustn’t be compulsory.

“Although the law does not prevent traders from charging fees, it does require that they are disclosed clearly to avoid consumers being misled. Drip feeding consumers with hidden charges has the potential to cause detriment to competition and to consumers,” said ACCC Deputy Chair Delia Rickard.

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Ticketek and Ticketmaster, the two largest ticketing outlets in Australia, now disclose minimum fees when quoting prices or during the first stages of a transaction. In fact, according to a company statement, Ticketmaster have welcomed the new changes.

“Ticketmaster welcomes the conclusion of the ACCC examination into pricing practices within the ticketing industry. Prior to the conclusion of the investigation, Ticketmaster had introduced new, streamlined pricing that provided an enhanced online purchasing experience for our customers and more clearly displayed ticket prices and fees,” said Ticketmaster Australia Managing Director Maria O’Connor.

“When a customer initiates an online ticket purchase, the first price displayed is inclusive of any applicable payment fee. Delivery fees are added once a customer selects their preferred delivery method, however the options and prices are displayed up front.

“Ticketmaster is committed to transparency and we have implemented these practices to strengthen this commitment, which the ACCC has acknowledged. We see ourselves as the leading example of good practice in the ticketing market and will continue to work to provide customers with fair and transparent pricing structures,” she added.

Industry association Live Performance Australia had warned its members of the potential costs of ACCC legal action. The LPA said they “[appreciate] that upfront pricing clarity is difficult when fees and charges are applied to the whole ticket order, not each individual ticket”, but urged members to declare all possible fees and charges upfront.

Events ticketing is the ACCC’s latest target. Back in June, the group took action against Jetstar and Virgin Australia for failing to sufficiently disclose compulsory credit card fees at the beginning of online transactions. Consumer rights watchdog Choice labelled such practices anti-competitive and unfair.

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