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Event tickets: Refunds for cancelled or postponed concerts

Key Takeaway

In New Zealand, consumers generally have rights to refunds for cancelled or significantly postponed event tickets under the Consumer Guarantees Act 1993 if the service cannot be provided. The Fair Trading Act 1986 prohibits misleading conduct regarding ticket sales and refund policies. These legal protections apply even if ticket terms and conditions state otherwise.

Event Tickets: Refunds for Cancelled or Postponed Concerts in New Zealand

When a concert or other event is cancelled or postponed in New Zealand, ticket holders may have rights to a refund or other remedies. These rights primarily stem from the Consumer Guarantees Act 1993 and the Fair Trading Act 1986, which set out legal protections for consumers against suppliers of goods and services.

Consumer Guarantees Act 1993 (CGA)

The Consumer Guarantees Act 1993 (CGA) provides a set of guarantees that suppliers must meet when providing services to consumers. A consumer is defined as a person who acquires goods or services ordinarily acquired for personal, domestic, or household use or consumption [Source: Consumer Guarantees Act 1993, s 2]. A supplier is a person who is in the business of supplying goods or services [Source: Consumer Guarantees Act 1993, s 2]. Services include the performance of work, the provision of facilities, entertainment, and other undertakings [Source: Consumer Guarantees Act 1993, s 2].

Guarantees for Services

The CGA stipulates that services supplied to a consumer must adhere to certain guarantees, including:

  • Reasonable care and skill: Services must be carried out with reasonable care and skill [Source: Consumer Guarantees Act 1993, s 28(a)].
  • Fitness for purpose: Services must be fit for any particular purpose that the consumer makes known to the supplier [Source: Consumer Guarantees Act 1993, s 28(b)].
  • Timely completion: Services must be completed within a reasonable time if no time for completion has been agreed upon [Source: Consumer Guarantees Act 1993, s 28(c)].
  • Reasonable price: The price for the services must be reasonable if no price has been agreed upon [Source: Consumer Guarantees Act 1993, s 28(d)].

Remedies for Failure to Comply

If a service, such as providing access to a concert, fails to comply with one of these guarantees, the consumer may have remedies. The type of remedy depends on whether the failure is minor or major [Source: Consumer Guarantees Act 1993, s 32]. A failure is considered major if:

  • A reasonable consumer would not have acquired the service if they had known of the extent or nature of the failure [Source: Consumer Guarantees Act 1993, s 32(a)].
  • The service is substantially unfit for a common purpose and cannot easily be remedied to be fit for that purpose [Source: Consumer Guarantees Act 1993, s 32(b)(i)].
  • The service is unfit for a particular purpose made known to the supplier and cannot easily be remedied to be fit for that purpose [Source: Consumer Guarantees Act 1993, s 32(b)(ii)].
  • The service is not of acceptable quality because of the nature of the failure, and it cannot easily be remedied within a reasonable time [Source: Consumer Guarantees Act 1993, s 32(c)].

For a major failure, the consumer can cancel the contract for the service [Source: Consumer Guarantees Act 1993, s 32(d)]. When a contract for services is cancelled, the consumer is entitled to a refund for any money paid for the services not provided [Source: Consumer Guarantees Act 1993, s 37].

Fair Trading Act 1986 (FTA)

The Fair Trading Act 1986 (FTA) is designed to protect consumers from misleading and deceptive conduct, and unfair trading practices by businesses in New Zealand. Trade refers to any trade, business, industry, profession, occupation, or calling of any kind [Source: Fair Trading Act 1986, s 2].

Misleading and Deceptive Conduct

The FTA prohibits any person in trade from engaging in conduct that is misleading or deceptive, or is likely to mislead or deceive [Source: Fair Trading Act 1986, s 9]. It also prohibits false or misleading representations about the nature, characteristics, suitability for a purpose, or quantity of services [Source: Fair Trading Act 1986, s 13(a)].

This means that event organisers and ticket sellers must be clear and accurate in their advertising and communications regarding events, including any refund policies. If a supplier makes a representation about an event (e.g., that it will take place on a certain date) and that representation is false or misleading, the supplier may be in breach of the FTA.

Cancelled Events

If an event is cancelled, the service (the concert itself) is not provided. This is generally considered a major failure under the CGA, as the service is completely unfit for its common purpose. In such cases, consumers are typically entitled to a full refund for the ticket price [Source: Consumer Guarantees Act 1993, s 32, s 37].

Postponed Events

For postponed events, the situation may be more nuanced:

  • Significant postponement: If an event is postponed to a date that is substantially different, or to a time when the consumer is no longer able to attend, this could be considered a major failure of the guarantee of fitness for purpose or a failure to provide the service with reasonable care and skill under the CGA. The new date might mean the service is no longer fit for the consumer's original purpose (e.g., specific travel plans). In such circumstances, a consumer may be entitled to a refund [Source: Consumer Guarantees Act 1993, s 28, s 32].
  • Minor postponement: A minor postponement (e.g., a slight delay on the day of the event) might not be considered a major failure, and a refund might not be automatically available under the CGA. However, if the event organiser made misleading representations about the event's timing or their ability to deliver it on the original date, the Fair Trading Act 1986 could apply [Source: Fair Trading Act 1986, s 9].

Terms and Conditions

While event organisers and ticket sellers often have terms and conditions of sale that address cancellations and postponements, these terms cannot override a consumer's rights under the Consumer Guarantees Act 1993 or the Fair Trading Act 1986 [Source: Consumer Guarantees Act 1993, s 43; Fair Trading Act 1986, s 5C]. Any term attempting to exclude or limit these statutory guarantees or protections is generally invalid. If a ticket seller's terms state 'no refunds under any circumstances,' this term is unlikely to be enforceable if it conflicts with the CGA or FTA.

Seeking Resolution

If a consumer believes their rights have been breached, the first step typically involves contacting the ticket seller or event organiser directly to request a refund or other remedy. If a satisfactory resolution cannot be reached, further steps may include lodging a complaint with the Commerce Commission (for Fair Trading Act breaches) or making a claim through the Disputes Tribunal.

When to Seek Independent Legal Advice

Navigating consumer rights, especially in complex situations involving event cancellations or postponements, can be challenging. For specific guidance on individual circumstances, consumers may consider seeking independent legal advice. Information and assistance can also be obtained from Consumer Protection and Community Law Centres across New Zealand.

Key Resources