During three years of extreme weather and lockdowns, New Zealand experienced its fair share of cancelled events.
Usually, getting a refund is as simple as waiting a few days or weeks and watching the money pop back into your bank account.
But Fair Go has had 500 complaints from customers who are still out of pocket after the Crusty Demons – Rise of Demons NZ Tour was cancelled in 2022.
Specialist civil litigation lawyer, Angela Parlane, detailed some potential reasons why Crusty Demons ticketholders have experienced so many issues getting a refund.
In the case of the cancelled 2022 tour, the agreement was between the ticketholder and the event organiser – not the agency that sold the tickets.
Ticketing providers approached by Fair Go told the programme that they were used as third-party software providers for the online sale of tickets.
They said they are not holding the funds from ticket sales, rather funds were transacted into the event promoter’s merchant bank account.
Parlane said those circumstances have created a difficult web for consumers to untangle.
“There's just so many entities behind it, one providing the software, one providing the ticket sales, one promoting the show, one providing the show. There's so many parties involved and it gets really complicated.”
She said Crusty Demons ticketholders still hoping for refunds may be out of luck due to the event promoter, Complete Events Group, having been struck off the Companies Register in May.
Because the company no longer exists, that makes it difficult for customers to bring a claim against the company through the Disputes Tribunal or by engaging a lawyer.
A number of New Zealanders have complained to the Commerce Commission about the event, but Parlane cautioned customers against expecting the Commission to provide them with a refund.
“Their role is to regulate and enforce consumer protection, but it doesn’t necessarily involve getting refunds for people.”
The Commerce Commission’s General Manager of Fair Trading, Kirsten Mannix, emphasised that its role is enforcing the Fair Trading Act – not assisting customers to get a personal remedy.
“The Commerce Commission is not a dispute resolution service.”
Parlane said the Commission tends to “pick and choose” due to the volume of complaints it receives and its limited resources.
That means cases where large companies, like airlines or telecommunications providers, are involved are more likely to be picked up due to the number of people affected.
She said it also favours complaints that meet its prosecution criteria, or where it can establish a breach of legislation.
Due to the “relatively small” number of people involved in this case, the company having been in receivership and its owner residing in Australia, the Commission would have less ability to enforce claims.
Mannix says the Commission decided not to investigate the cancelled Crusty Demons tour as these circumstances meant its actions may be less likely to lead to a successful outcome.
“Our resources are often better applied elsewhere – pursuing cases where we believe we can achieve a successful outcome for New Zealanders.”
Parlane said this should be a cautionary tale, reminding customers about the importance of knowing what they’re signing up for and where their money is actually going.
“There is fine print, and it’s there for a reason, and you should read it.”
Reading the terms and conditions before purchasing a ticket ensures buyers know who the agreement is with, and what the circumstances are.
Still, cancelled events can leave customers without a refund even if they do everything right.
Cancellations or delays caused by events outside of the ticket agents control such as extreme weather events are excused from liability under the Consumer Guarantees Act.
Many companies will still refund customers in these circumstances, but there is a chance they may not.
Likewise, if a company has gone into receivership since issuing the tickets, refunds may not be forthcoming.
Customers become unsecured creditors, which means they would be paid money they are owed after any secured creditors.
“It is hard for consumers, but you just have to be aware that there is a chance that if you booked something, that it may not eventuate and you may not get a refund.”
Parlane advises those wanting to protect themselves purchase tickets from reputable websites such as Ticketek or Ticketmaster.
Avoid resale sites such as Viagogo, or buying tickets from private sellers on Trade Me or Facebook Marketplace.
Private sales do not offer the same protections for customers, as they are not covered by the Consumer Guarantees Act or the Fair Trading Act.
Paying for tickets with a credit or debit card can add another layer of protection, as it allows customers to request a chargeback from their bank if things go wrong.
Paying in cash or with a direct bank transfer provides less opportunity for recourse in the case of a dispute.
If things still go wrong, a complaint to the Commerce Commission is appropriate if there is concern a breach of the Fair Trading Act or Consumer Guarantees Act has occurred.
Complaints may not help customers get a refund, but they do help the Commission regulate traders and potentially prevent more people from losing money in future.
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