Consumers within the Drummoyne electorate will get a fairer deal on event tickets and gift cards, under new reforms proposed by the state government.
Minister for Better Regulation Matt Kean said the government is putting consumers first and listening to their everyday concerns.
“NSW consumers are being price gouged at sporting and entertainment events as tickets are being swept up by ‘bots’ and resold online at hugely inflated prices,” Mr Kean said.
“Consumers are also rightly frustrated at losing up to $60 million every year through unused balances on expired gift cards, and I simply won’t stand for it.
“But that’s exactly why we’ve developed a suite of reforms to tackle both these issues, and help ensure consumers are given a fair go.” he said.
The reforms would prohibit anyone from reselling a ticket to a NSW entertainment or sporting event for more than the original sale price, plus the transaction costs incurred in the original purchase – for example, booking fees.
Additionally, the transaction costs would be capped at a maximum of 10 per cent of the initial sale price, which means that no ticket should be resold for more than 10 per cent above its original price.
The proposed reforms would also see the introduction of a three-year mandatory minimum expiry date on all gift cards sold to NSW consumers.
Businesses would also be prohibited from applying post-purchase administrative fees, which have the effect of reducing the balance left on a card.
Member for Drummoyne, John Sidoti said the reforms will save consumers significant amounts of money.
“It’s not right that NSW consumers can’t access tickets to their favourite sporting team or live artist, simply because scalpers are demanding unfair prices in the resale market — often many times higher than the original price,” Mr Sidoti said.
“Nor is it acceptable that consumers are losing millions each year because of the time limit on gift cards.
“These reforms will allow consumers to redeem a gift card or enjoy a live event without being ripped off in the process.” he said.
Bills amending the Fair Trading Act 1987 are currently before State Parliament.