Festival failures prompt calls for shake-up in ticketing rules

Photo: Unsplash / Joey Thompson There's a call for laws to be introduced requiring ticket sellers for big events to hold punters' cash in trust, so we don't see a repeat of fans' money going down the drain in the wake of cancelled festivals. A music event promoter says the mess caused by the cancellation of Juicy Fest and Timeless Summer proves current regulations miss the mark when it comes to protecting punters. An initial liquidator's report estimates the three companies behind the events owe creditors more than $2.4 million. Ticketholders who have tried to get their money back through the ticketing agency Ticket Fairy have been told the company no longer holds their money as all funds were transferred to the promoter. It is a model some ticketing companies use, and it is not one Eccles Entertainment co-founder Brent Eccles is keen on. "They've sold their services based on the fact that the promoter can get their money, and we hope that if something goes wrong that they are cashed up well enough to be able to refund the money," he says. There is no law saying organisers have to sell tickets to their event through a ticketing company, but Eccles says many do for a variety of reasons, including promotional opportunities. In many cases promoters have no choice because venues insist that their contracted ticketers are part of the package. "Spark Arena is a good example, you have to use Ticketmaster, no ifs or buts... [it's] so they can have a consistency as far as how their venue works and how their seating works." For Eccles it is also a matter of safety for both him and ticket buyers. He uses companies that hold the money in a trust, only releasing the funds after the event has taken place. "I know the money is safe, I know there's a good system in place to sell the tickets, I know it's not going to break down. "The promoter probably pays a bit, and the ticket buyer pays a bit to make sure the system works and I think it's worth it," he says. In the case of Juicy Fest and Timeless Summer, ticketing company Ticket Fairy did not hold on to the money and now with both companies in liquidation Eccles says the chances of ticketholders getting their money back is slim. He worries about the impact it will have on the entertainment industry in terms of consumer trust and says if nothing changes it's only a matter of time before it happens again. "We're trying to get the government to look at this situation and go, 'you've got to do something about this, this is crazy'. "There's so much money involved, millions and millions of dollars that goes through these ticketers and with show business becoming so big in New Zealand [the government] has to protect the consumer," Eccles says. In a written statement, Minister of Commerce and Consumer Affairs Scott Simpson told The Detail that he is disappointed to hear that those who purchased tickets have not been refunded. He is also aware of calls for law changes from the industry in the wake of this case. "There are a broad range of existing protections for consumers in New Zealand. For example, a consumer's rights in relation to cancelled tickets are typically set in the terms and conditions of their ticket. Any statements must be true and not misleading, and if there is a breach, consumers may be able to obtain damages for the amount of their loss," Simpson says. He encourages ticketholders seeking a refund to also submit a creditors claim form to the liquidator. "The Commerce Commission is currently investigating this case, and I await their findings with interest," Simpson says. The Detail also speaks to Consumer NZ reporter Chris Schulz, who has his own experience with cancelled festivals where the organisers have gone into liquidation. He thinks the cancellation of Juicy Fest and Timeless Summer is just the tip of the iceberg. "The events industry is like a boom-and-bust industry. In boom times you see all these shows all these festivals, post-Covid there were so many events. "Now we're coming towards the end of that... we're still in a recession, there's not a lot of spare money floating around for things like tickets, people are being pretty picky about what they go to... and that's when you start seeing festivals fall over, you're seeing concerts cancelled because they're not selling enough tickets," Schulz says. But it was not a lack of ticket sales that led to Juicy Fest's and Timeless Summer's demise. Juicy Fest Limited cited not being able to obtain a liquor licence for their Auckland venue as the reason for the cancellation. The Auckland District Licencing Committee made the decision based on issues at previous Juicy Festivals, and issued a 198-page decision documenting those problems. The regulation of ticket sales falls under the Consumers Guarantees Act and the Fair Trading Act. Schulz says these both work really well, until a company goes into liquidation. "That money's disappeared, the company's no longer running, the...

Festival failures prompt calls for shake-up in ticketing rules

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