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BookMyShow, Consumer Protection Act, Naik Naik & Co.

BookMyShow, Consumer Protection Act, Naik Naik & Co.

In recent years, the live music scene in India has seen an unprecedented rise in popularity, attracting international artists and generating frenzy among fans. However, it has also given rise to the worrying phenomenon of ticket scalping, particularly highlighted by the recent frenzy surrounding high-profile concerts like those of Coldplay and Diljit Dosanjh. As fans eagerly awaited to see their concert, the aftermath revealed a worrying trend of ticket resellers taking advantage of the high demand by reselling tickets at exorbitant prices. This practice not only frustrates true fans, but also raises questions about the ethics of ticket sales, market regulation and its impact on the live music scene.

Before noon on the 22ndsd In September 2024, fans from several parts of the country were all queuing up on the “BookMyShow” website (“Platform“) to buy the “Sphere Music World Tour‘tickets. What started as a dream come true for die-hard fans, quickly turned into a nightmare when it emerged they were stuck in a maze with thousands of others desperately waiting for their turn to buy the tickets only to discover that tickets were sold inside. minutes of being online. To add salt to the wound, fans quickly discovered that tickets were being resold by various third parties for three to four times the original amount. Prices which initially ranged between INR 4,000 and INR 35,000 were offered between INR 50,000 and INR 1,00,000, making it almost impossible for true fans to secure a seat at the concert.

The situation was exacerbated when reports emerged of automated bots being used by scalpers to grab tickets as soon as they went live. This practice not only allows resellers to purchase tickets in bulk, but also contributes to the artificial scarcity that drives up ticket prices. Frustrated fans, who queued online for hours, took to social media to express their outrage, demanding accountability from event organizers and the platform, only to receive a simple apology claiming that they were not affiliated with any scalpers and did not encourage the purchase of tickets. from any unauthorized third party.

A similar visual was seen during the ticketing saga that unfolded with popular Punjabi artist Diljit Dosanjh’s ‘Dil-luminati’ tour tickets, which was also marred by scalping issues. Tickets sold out within minutes of the presale going live, then posted at inflated prices on secondary markets, leaving true fans scrambling for alternatives. The outcry from supporters was palpable, highlighting a growing dissatisfaction with the current ticketing system. Many said the joy of seeing their favorite artists perform was overshadowed by the feeling of being exploited by scalpers. This sentiment has sparked discussions about the need for stricter regulations and fair practices in the ticketing industry.

Although at present, in India, there is no specific law that comprehensively deals with ticket scalping, there are several other legal avenues that can be invoked to address this issue. These include (i) the Consumer Protection Act, 2019, for remedies against unfair commercial practices, (ii) the Bhartiya Nyaya Sanhita Act, 2023, for offenses such as organized petty crime, (iii) the Competition Act 2002, for abuse of dominant position.

In addition to legal channels, many ticketing platforms have adopted their terms of service, prohibiting the resale of tickets at inflated prices. Fans can report scalpers on these platforms, which can result in account suspension or ticket cancellations.

Following the public outcry over the sale of Coldplay tickets, legal action was taken against the platform as well as event organizers “Live Nation Entertainment” and its promoters based on Adv’s complaint. Amit Vyas. In the complaint, it is alleged that the platform indulged in black marketing of tickets for Coldplay’s show in Mumbai, by disconnecting individuals ready to block their seats at noon sharp. According to the complaint, the intention was to give resellers and ticket bots enough time to create artificial queues and secure tickets in droves to resell them at exorbitant prices. As part of the complaint, the economic offenses wing of the Mumbai Police has summoned Ashish Hemrajani, CEO of the platform’s parent company Big Tree Entertainment, along with the company’s technical head, to appear for questioning on September 28, 2024. Also, on September 9,th In October, the Delhi High Court issued a notice on a public interest litigation seeking framing of guidelines to prevent the menace of black marketing of tickets.

While investigations are ongoing, fans have stormed Coldplay’s official social media channels and asked for their support by canceling shows or helping them hold the platform and organizers accountable. With no response from the band so far, it is uncertain whether the long-awaited concert will see the light of day, but until then, what is clear is that there is a void in the law and in practice for strict regulation of ticket sales. in India. This void, if not filled, will likely eventually lead to a collapse of the live performance scene in India.

Authors: Shaanal Shah (Senior Associate) and Dayita Panicker (Associate) at Naik Naik & Co. Opinions are personal.