The Competition and Markets Authority (“CMA”) has announced the launch of a project to consider how so-called ‘dynamic pricing’ is being used across different sectors of the economy.

As we have reported previously here, dynamic pricing hit the headlines recently when Ticketmaster employed it during the sale of tickets to Oasis’ reunion concerts. That prompted the launch of an investigation into Ticketmaster by the CMA, and confirmation by the Culture Secretary that dynamic pricing would be included among the range of matters being considered as part of the Government’s consultation into the secondary ticketing market.

Dynamic pricing is not a new phenomenon, nor is it unlawful. Many will have experiences of it in the context of booking flights, using taxis, or even purchasing a pint after 10pm. However, it has come under increasing scrutiny in recent months since the Oasis saga, and there are concerns in some quarters that it is being employed in such a way that consumers are misled as to the price of goods and services, potentially in breach of the Consumer Protection from Unfair Trading Regulations 2008.

According to the CMA, its new project will gather views from businesses “using pricing practices that may be considered dynamic pricing” as well as those from consumer groups and other regulators in order to consider:

1. Different scenarios where dynamic pricing strategies are being used;
2. Commercial and consumer benefits of dynamic pricing strategies; and
3. Whether dynamic pricing strategies create challenges for consumers and competition.

The CMA will publish its finding with a view to “informing the Government’s consideration of the issues raised by dynamic pricing”.

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