Concert cancellations and ticket refunds: Eventim is facing a model declaratory action - a financial expert reports

Concert cancellations and ticket refunds: Eventim is facing a model declaratory action - a financial expert reports

According to a report from www.faz.net, music fans are currently facing an oversupply of concert tours. However, this poses a problem for the concert industry as the cost of touring has risen sharply and there is increasing competition for limited time and music fans' sometimes limited budgets. One reason for canceled tours, for example, is that not enough tickets are sold to economically participate. In recent years, however, Corona restrictions have often been the reason for cancellations.

Not only the concert organizers, but also the fans had problems with the tickets they had purchased. Despite a refund policy as part of the voucher solution, many concert goers were stuck with the costs. CTS Eventim, Europe's largest ticketing and events group, in particular was confronted with increasing complaints. The company refunded the cost of the ticket, but kept part of it without providing customers with precise information.

The Federal Association of Consumer Advice Centers (vzbv) has long criticized this approach and is demanding that Eventim refund the full ticket price. Individual consumer advice centers have taken up the issue, but have not been successful. In May 2022, the vzbv finally announced that it would file a model declaratory action against the ticket provider. Affected customers can join this lawsuit without having to bear the risk of litigation and costs. The more people join the lawsuit, the greater the pressure on Eventim.

This is not the first legal dispute between consumer advocates and Eventim. The Munich Regional Court had already decided that in the event of canceled events, Eventim may not refuse to reimburse the full purchase price across the board with reference to the general terms and conditions. However, Eventim considers the consumer advocates' demands to be unfounded and plans to defend itself against the lawsuit.

The impact of this legal dispute can be significant for both the market and the consumer. If Eventim were to be required to fully refund the ticket price, this could be financially burdensome for the company. It could require Eventim to rethink its business model and potentially introduce higher ticket prices or other fees to absorb the costs. This would in turn have an impact on consumers, who would have to expect higher costs for concert tickets.

The model declaratory action against Eventim is another case intended to strengthen consumers' rights with regard to concert tickets. If more people join the lawsuit, it could send a message to the entire concert industry and lead to better treatment of consumers at canceled events.

Source: According to a report from www.faz.net