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USING THE STAR MODEL TERMS AND CONDITIONS

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<strong>USING</strong><br />

<strong>THE</strong> <strong>STAR</strong><br />

<strong>MODEL</strong><br />

<strong>TERMS</strong> <strong>AND</strong><br />

<strong>CONDITIONS</strong><br />

UPDATED JANUARY 2011


BACKGROUND<br />

Shortly before the publication of its Market Study of<br />

Ticket Agents in January 2005, the Office of Fair Trading<br />

contacted <strong>STAR</strong> with the suggestion that it draft Model<br />

Terms and Conditions of sale for use by <strong>STAR</strong> members.<br />

The OFT noted in its report that in spite of the OFT’s<br />

publication of specific Guidance on Unfair Terms in<br />

Consumer Entertainment Contracts published in<br />

December 2004, some ticket agents, including <strong>STAR</strong><br />

members, were continuing to use terms that the OFT<br />

considered unfair.<br />

The OFT Market Study said that “experience shows that<br />

the creation by trade associations of model terms for<br />

their members’ consumer contracts is an effective and<br />

efficient way to improve standards in a large number<br />

of contracts, and can raise standards across a sector as<br />

a whole….We therefore recommend that the Society<br />

of Ticket Agents and Retailers (<strong>STAR</strong>) produce model<br />

terms for its members. We are happy to work with the<br />

<strong>STAR</strong> in producing these terms”.<br />

<strong>STAR</strong> responded positively to this suggestion and the<br />

<strong>STAR</strong> Council met with representatives of the OFT<br />

Contract Regulation Unit after which a cross-industry<br />

working group was put together to work on drafting the<br />

model terms.<br />

The draft terms went through various stages of legal<br />

scrutiny from within the working group, by other<br />

lawyers engaged to offer an independent opinion<br />

and through considerable consultation across the<br />

entertainment industry over a number of years. The<br />

OFT has agreed the terms as being fair to the limited<br />

extent that they are able to do so without the terms<br />

being tested in court. They have also agreed that they<br />

pass the necessary test of being written in plain English<br />

to help customers understand them.<br />

The model terms are not exhaustive and there will<br />

inevitably be some matters that need to be dealt with<br />

separately by ticket sellers. These model terms are<br />

simply intended to cover issues that are common to<br />

most events.<br />

Sellers using the model terms can add to them, preferably<br />

by way of an addendum to ensure that the core terms<br />

remain common amongst companies adopting them.<br />

Some terms, for instance the refund of per ticket booking<br />

fees for cancelled events, are immutable and core to the<br />

purpose of <strong>STAR</strong> and are also detailed in the <strong>STAR</strong> Code<br />

of Practice. It is imperative that any additional terms used<br />

by individual companies are also assessed by the seller for<br />

fairness within the relevant regulations and in separate<br />

consultation with the OFT if necessary. However, ticket<br />

sellers should remember that the model terms and<br />

conditions form the core of all trading terms and cannot<br />

be omitted or altered.


PRESENTING <strong>TERMS</strong> <strong>AND</strong><br />

<strong>CONDITIONS</strong> TO CUSTOMERS<br />

Terms and conditions cannot be binding unless a<br />

customer has fair access to them before making a<br />

purchase. Obviously 7 pages of A4 would be quite a lot<br />

to digest before completing a booking for tickets but<br />

they do, nevertheless, need to be made available.<br />

Some members are concerned about how customers<br />

can be presented with the terms andconditions, but<br />

we are all familiar with this process through other<br />

purchases we make and the process does not need to be<br />

excessively onerous.<br />

The OFT has previously stated the following:<br />

1 That they would expect <strong>STAR</strong> and its members to<br />

place the model terms on their respective websites.<br />

2 That for agreements to have been made in good faith,<br />

any terms and conditions (particularly the terms<br />

relating to refunds/exchanges, resale and liability)<br />

should be communicated to consumers at the outset,<br />

or prior to purchase consumers should be made<br />

aware of where to find the terms and conditions.<br />

The three main ways of booking and<br />

means of delivering the Ts&Cs are:<br />

In Person: Terms and conditions can be made<br />

available at the sales counter should customers wish<br />

to read them.<br />

Online: The simplest. Terms and conditions can<br />

be presented on a separate page with relevant links.<br />

Some companies also ask customers to check a box to<br />

indicate that they have read, understood and accepted<br />

the terms and conditions. The majority of customers<br />

probably just tick the boxes to proceed as quickly as<br />

possible. Customers could also be directed to the<br />

<strong>STAR</strong> website where the model terms are displayed<br />

(http://www.star.org.uk/media/4775/tc.pdf)<br />

By Phone: Some companies offer a full recitation<br />

of terms and conditions on their automated phone<br />

systems (interactive voice recognition - IVR). Customers<br />

could be made aware of where to find the full terms<br />

and conditions (website etc.) and given ‘highlights’ of<br />

important terms – for instance those relating to liability<br />

and refunds/exchanges.<br />

<strong>TERMS</strong> <strong>AND</strong> <strong>CONDITIONS</strong> ON TICKETS<br />

For years, ticket sellers have relied on terms and<br />

conditions printed on a ticket but as they are only<br />

presented to the customer after the sale has been<br />

completed, they are not binding and can only serve to<br />

reinforce knowledge and understanding of terms<br />

presented before the sale was completed. That<br />

reinforcement is certainly worthwhile but the importance<br />

of different terms may vary from seller to seller and it is<br />

therefore up to them to decide what to include.<br />

However, simply drawing attention to where the full<br />

terms and conditions can be read (online or by phoning<br />

for a copy to be sent?) may be sufficient.<br />

Wherever terms are abbreviated from the full terms, the<br />

sense of the original term should not be lost or altered.<br />

It is up to members to decide what terms they need to<br />

or wish to reiterate on their tickets, if any. There is no<br />

stipulation from <strong>STAR</strong> about what should be included.<br />

Example of terms printed on a ticket:<br />

From the full terms and conditions of sale<br />

(www.star.org.uk/media/4775/tc.pdf) we would<br />

like to draw your attention to the following:<br />

• Tickets cannot be exchanged or refunded<br />

after purchase unless the performance<br />

is cancelled or rescheduled or there is a<br />

material change to the programme or event.<br />

• Personal arrangements including travel,<br />

accommodation or hospitality relating<br />

to the Event which have been arranged<br />

by you are at your own risk.<br />

• It is your responsibility to check<br />

whether an event has been cancelled or<br />

rescheduled and the date and time of any<br />

re-scheduled event.<br />

• You may not re-sell or transfer a ticket if<br />

prohibited by law.<br />

• In circumstances where an Event is<br />

cancelled or rescheduled by the Venue<br />

or Promoter and refunds are to be given,<br />

the refund will equal the face value<br />

of the ticket plus any per ticket booking fee.<br />

• The management of the venue reserves<br />

the right to refuse ticket holders admission<br />

to the venue in reasonable circumstance,<br />

including for health and safety, licensing<br />

reasons or where a ticket is void.


DETAILS FOR MEMBERS<br />

TO DEFINE<br />

There are a few details which members will need to insert into the terms which are specific to your company:<br />

1) In Section 1 – the name of the member company should be inserted.<br />

2) Section 5 – you should include details about how tickets will be delivered as well is indicating the time before an<br />

event at which a customer should contact you if tickets have not been received.<br />

3) Section 10 – you should include details about how you retain and use details provided by customers. Obviously<br />

your policy on this should comply with relevant data protection regulations.<br />

FUR<strong>THE</strong>R INFORMATION<br />

ON UNFAIR <strong>TERMS</strong><br />

The Office of Fair Trading provides the following<br />

information about unfair terms. The relevant legislation<br />

is The Unfair Terms in Consumer Contracts Regulations<br />

1999 (UTCCRs):<br />

What is an unfair term?<br />

An unfair term in a contract covered by the UTCCRs<br />

is not binding on the consumer.<br />

Test of fairness<br />

A term is unfair if:<br />

contrary to the requirement of good faith it causes a<br />

significant imbalance in the parties' rights and obligations<br />

under the contract, to the detriment of consumers.<br />

'Good faith' means that you must deal fairly and<br />

openly with consumers. Standard terms may be<br />

drafted to protect commercial needs but must also<br />

take account of the interests and rights of consumers<br />

by going no further than is necessary to protect<br />

those legitimate commercial interests.<br />

The plain language requirement<br />

According to the UTCCRs, a standard term must be<br />

expressed in plain and intelligible language. A term is<br />

open to challenge if it could put the consumer at a<br />

disadvantage because he or she is not clear about its<br />

meaning - even if its meaning could be worked out by<br />

a lawyer. If there is doubt as to what a term means,<br />

themeaning most favourable to the consumer will apply.<br />

What terms are not covered?<br />

Most standard terms are covered by the UTCCRs.<br />

The exceptions are those:<br />

• that reflect provisions which by law have<br />

to be included in contracts<br />

• that have been individually negotiated<br />

• in contracts between businesses<br />

• in contracts between private individuals<br />

• in certain contracts that people do not make<br />

as consumers – eg, relating to employment or<br />

setting up a business<br />

• in contracts entered into before 1995<br />

Terms setting the price or<br />

defining the product or service<br />

Terms in consumer contracts which set the price or define<br />

the product or service being supplied are 'core terms' of<br />

the contract and are exempt from the test of fairness as<br />

long as they meet the plain language requirement.<br />

Links to More Information<br />

The Unfair Terms in Consumer Contracts Regulations<br />

1999 (UTCCRs) http://www.oft.gov.uk/advice_and_<br />

resources/resource_base/legal/unfair-terms/<br />

Guidance on unfair terms in consumer entertainment<br />

contracts http://www.oft.gov.uk/shared_oft/reports/<br />

unfair_contract_terms/oft667.pdf

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