It's a tough time to be in events. Most events are facing cancellation or postponement especially under the latest government gathering restrictions. It's hard to know what you can, and should do legally, for your customers who have bought tickets.
Say you've cancelled a professional conference. Tickets are half-subscribed. Non-refundable venue booking fees mean that you don't have the cash to offer a full refund. Here are some options.
- Postpone the event and tell your ticket-holders that their bookings will be good for the future date.
- Cancel the event and:
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- give your ticket-holders credit for a different, future event, or provide a voucher for other goods/services that your business offers; or
- offer a partial refund of the portion of the ticket price that your business can afford, and a credit/voucher for the remainder of the ticket price.
The ACCC has indicated that it expects event hosts to do something for their customers in most cases.
- If people request a refund, explain the situation to them. Tell them about the venue booking fee and any other expenses that you can't recover and how that impacts your ability to provide a refund. Tell them what you can offer them instead.
- Keeping the money and offering nothing is likely to land you in hot water. Practically speaking, there would be very few situations where you could confidently keep ticket payments for a cancelled event, even if the cancellation is due to government restrictions on gatherings. Even if you could make out a case on frustration or force majeure, you may still be exposed under the Australian Consumer Law to claims of unconscionable conduct or unfair contract terms.
It's not an easy road to navigate; there's no precedent for the current situation. Consider the brand impacts of your approach as well as the legal implications. You'll be rewarded for showing compassion and empathy. Clear and honest communication will serve you best.
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