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CEO’s bombshell text after company rejects customers’ refunds

The company has left a trail of disgruntled customers in its wake who are baying for blood, claiming they have lost thousands of dollars.

Refunds: the keys to getting your money back

Sydneysider Matthew King was one of the first to buy tickets to US rock band Live when they were coming to Australia to headline a music festival travelling around the country.

He nabbed three tickets in 2019 through Eventbrite for $450 to attend one of the 11 concerts during the Under the Southern Stars (UTSS) tour, run by One World Entertainment, set to begin in April 2020.

But then Covid-19 came along.

Now, two years and three cancelled concerts later, Mr King, 40, is still waiting for a refund.

In fact, it’s been so long that he’s had two kids in the meantime, a two-year-old and an eight-month old.

In December, One World Entertainment gave customers the choice of attending the rescheduled concert slated for March 2022 — with different artists in their line-ups (Live had pulled out long ago), and at different venues and times — or requesting a refund by filling out a form. Mr King, like many others, opted for a refund.

But several weeks ago, after the March concert had finished up, the company said those ticket holders must go to one of two alternative music festivals next year to recoup their losses.

They’re “not offering me the same product that we purchased” Mr King told news.com.au, slamming the company’s offer. In a response to comment for this piece, lawyers for One World Entertainment say that the company never “offered refunds” but “permitted ticketholders to make a request for a refund through the ticketing agency”.

Hundreds of Australians claim they are owed a refund and dozens have lodged complaints with consumer affairs departments across NSW, Queensland and Victoria. News.com.au knows of several cases going to tribunals and some people believe they are owed thousands.

News.com.au understands NSW Fair Trading says it “has concerns” about what the situation means for consumers and are currently investigating, as of last week.

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NSW Trading is investigating the handling of giving out refunds for the cancelled Under the Southern Stars festival tour.
NSW Trading is investigating the handling of giving out refunds for the cancelled Under the Southern Stars festival tour.
It sent this letter.
It sent this letter.

But in another twist, it appears that the CEO of One World Entertainment, Andrew McManus, may have been desperate to stop at least one case going before the NSW Civil and Administrative Tribunal (NCAT).

A bombshell text message shows that the concert promoter coordinated the refund payment for one ticket holder to stop the case going before a tribunal.

A person who preferred to stay anonymous told news.com.au that Mr McManus asked them to withdraw their complaint.

“I was one of the first people to lodge an application with the NCAT and before my case was heard I received a phone call from the man himself, Andrew McManus,” this person told news.com.au.

“He asked me to withdraw my application and to cease speaking ill of him and the company online.”

Although most of this conversation happened over the phone, a text message exchange shows the recipient providing their BSB and account number. The sender then provides proof that the bank transfer has been made.

News.com.au can confirm the sender in the message exchange is Andrew McManus, who has denied this version of events. Mr McManus said he reached a commercial settlement as porposed by the customer.

Mr McManus is no stranger to controversy after he was found guilty in 2017 of perverting the course of justice by claiming a suitcase filled with more than $700,000 in cash was his.

He avoided jail time, after the judge handed out 20 months of community service as a sentence.

This text message shows Andrew McManus refunding a customer who was threatening to go before an NCAT tribunal.
This text message shows Andrew McManus refunding a customer who was threatening to go before an NCAT tribunal.
Concert promoter Andrew McManus. Picture: Glenn Hampson
Concert promoter Andrew McManus. Picture: Glenn Hampson

Many UTSS ticket holders opted for a refund rather than attending the rescheduled event that happened in March 2022.

By then, Live had pulled out of the show and the rescheduled events were at different venues and locations.

For instance, one live performance had changed from a Saturday night to a Tuesday night, and gone from Gosford to Maitland, making it impossible for some people to get to.

But then, after the March festival was over, they were informed their money wasn’t going to be returned at all – and that they would now have to wait until 2023 for two alternative festivals.

Dan Cordery claims One World Entertainment should pay him him $2500 after he paid for eight VIP tickets in 2019.

Have a similar story? Get in touch | alex.turner-cohen@news.com.au

Ticket holders were invited to apply for a refund.
Ticket holders were invited to apply for a refund.
But many ticket holders who requested refunds have had their requests declined.
But many ticket holders who requested refunds have had their requests declined.

The 37-year-old told news.com.au that they all wanted their money back because the venue changes were too difficult and also a marriage breakdown between two members of the group made it awkward for everyone to attend.

“A marriage had broken between two ticket holders as well so life just changed too much [to go],” Mr Cordery explained.

It’s understood some of the alternative concerts did not offer VIP seats despite the tickets costing an extra $160.

Then there’s Karen Cee, in her 40s, from NSW’s Central Coast, who requested a $1200 refund months ago which she claims she is owed after purchasing eight general admission tickets for herself and her friends.

Daniel Cordery is waiting for a $2500 refund he believes he is owed.
Daniel Cordery is waiting for a $2500 refund he believes he is owed.
This matter has also been reported to Victorian and Queensland consumer bodies.
This matter has also been reported to Victorian and Queensland consumer bodies.

NSW resident Mick Robinson, who was looking forward to watching Live with his son and partner, said he felt the handling of the festival was unsatisfactory after refunds were taken off the table.

“By conducting themselves [One World Entertainment] in this manner, they have turned consumers into victims,” he said to news.com.au.

He also blamed Eventbrite for taking people’s money but not enforcing any kind of refund from the concert promoters.

Cassandra McGuire, another concert goer, said: “Imagine the interest they could have earnt from all our money since 2019.”

Molly Bro, 30, from Caboolture in Queensland, is $599 out of pocket and has even given birth to a child since she paid for four tickets for herself and some friends.

“I just want the money back,” she told news.com.au.

The original concert she planned to attend was in Sandstone Point which was far away from where she lived, prompting her to book a hotel room for several days.

In the end, the concert was cancelled only eight days out, so it was too late to get a refund from the hotel. She had to have a “random holiday” and do nothing to make the most of her booking.

Melburnian Stephanie Butcher told news.com.au “I’m 48 now. I was 46 when I bought the tickets.

“I’ve written the money off [but] you want them [One World Entertainment] made accountable.”

She said she would never again “purchase tickets from Eventbrite or from One World Entertainment”.

Mick Robinson has lodged a complaint with NSW Fair Trading.
Mick Robinson has lodged a complaint with NSW Fair Trading.
Steph Butcher, an avid live concert goer, at a local pub when Roger Corser was performing. She bought tickets to see Live and has wanted a refund ever since the band pulled out.
Steph Butcher, an avid live concert goer, at a local pub when Roger Corser was performing. She bought tickets to see Live and has wanted a refund ever since the band pulled out.
It’s been so long that Molly Bro has given birth to a baby between the cancelled concerts. Ms Bro has requested a refund for $599.00 after buying four general admission tickets years ago.
It’s been so long that Molly Bro has given birth to a baby between the cancelled concerts. Ms Bro has requested a refund for $599.00 after buying four general admission tickets years ago.

It’s unclear how much money is claimed to be owed to customers but the number could be in the thousands to hundreds of thousands.

The festival apparently had 50,000 tickets on sale, which were a mix of general admission and VIP tickets.

A group has been formed on social media to help customers find a way to get a refund they believe is owed. 1100 people have joined.

Last year in April, after the Under The Southern Stars tour was cancelled for a second time, Mr McManus indicated he owed $247,000 to debtors.

He blamed “trigger-happy” state and territory governments for ruining the festival, in particular Victoria and South Australia.

“These crazy trigger-happy closures are not helping. That’s why I have had to move it [the festival] back,” he said.

“For me now to wait another year means I have to take out loans. I’m $247,000 in. I bought all the tickets, they were coming.”

In emails with angry customers, One World Entertainment defended their position not to pay out refunds, citing the “intervening circumstance” provision in the Live Performance Australia Ticketing Code of Practice.

Andrew McManus has denied any wrongdoing. Picture: Lyndon Mechielsen/The Australian
Andrew McManus has denied any wrongdoing. Picture: Lyndon Mechielsen/The Australian

Late last month, NSW’s Fair Trading said in a letter to customers: “With regard to your complaint, Fair Trading understands the trader’s original position was that refunds would be provided to customers who were unable to attend on the concert’s rescheduled date.

“However, they have now advised that they are offering ‘like for like’ tickets to a choice of two music festivals to be held in 2023.

“Fair Trading has concerns that this outcome is not consistent with the trader’s obligations under the Australian Consumer Law.

“In the circumstances, Fair Trading is continuing its enquiries in relation to the matter with a view to achieving a more suitable outcome.

“It is important to note, however, that Fair Trading cannot order or direct the trader to provide a refund”.

A spokesperson for NSW Fair Trading said complaints had been received in relation to the Under the Southern Stars event.

“Any business the subject of 10 or more complaints in a calendar month is published on Fair Trading’s Complaint Register,” they said.

“Under the Southern Stars has appeared on the Register in March 2022 with 22 complaints, and April 2022 with 19 complaints received.

“NSW Fair Trading is investigating One World Entertainment, and is reviewing the trader’s response to customers and postponement of the event due to Covid-19 to determine compliance with Australian consumer law.”

One World Entertainment and Eventbrite respond

The first page of Mr McManus’s full statement.
The first page of Mr McManus’s full statement.
Page two.
Page two.
Page three.
Page three.

Mr McManus would not comment on the number of people requesting refunded tickets, or the amount that would cost if paid out.

In a statement to news.com.au, the One World Entertainment chief executive wrote: “Under the Southern Stars is saddened to hear that ticket holders have expressed their disappointment regarding remedies offered as a result of Intervening Circumstances leading to the rescheduling and relocation of shows.

“It has been suggested by some ticketholders that we have breached the Australian Consumer Law or Unfair Contract laws, which is not correct.”

Later on in his three-page statement, he added: “To address the extraordinary pressures on the live music industry, the Code was amended effective 21 January 2021, to include a definition of: “Intervening Circumstance”: being a cause outside human control which occurs after the time when a Ticket is sold and includes public health emergencies (eg: pandemics).

“Part E of the Code also provided: There may be instances when Members are unable to present Events due to Intervening Circumstances. This may result in Events being cancelled, rescheduled or significantly relocated.

“Where an Event has been cancelled, rescheduled or significantly relocated due to Intervening Circumstances, the Consumer Guarantee provisions of Australian Consumer Law are impacted. Consumers may not be entitled to a refund under the Consumer Guarantees.

“Whether Members need to provide Consumers with a refund or other remedy will generally depend upon the Ticket Terms and Conditions at the time of sale.”

He also added: “We can understand the frustration of consumers given the fact that we were forced to reschedule our event several times.

“We were equally frustrated, actually – more frustrated.”

That said, he did not budge on his position, saying: “We reiterate the contractual terms of sale of our tickets expressly stated – no refund.”

The full statement can be read above.

Eventbrite said it was not in a position to hand out refunds because One World Entertainment had already pocketed the ticket proceeds from the event.

“If One World Entertainment (the organisers behind this event) indicated that it would provide refunds despite that the event ultimately took place, One World Entertainment would be responsible for doing so,” a spokesperson told news.com.au.

“Eventbrite has provided One World Entertainment with the ticketing proceeds from this event.”

The ticketing platform added: “As a general rule, Eventbrite is a self-service platform. This means that event creators are responsible for setting and managing their own refund policies as part of using the service.

“Consumers requesting a refund should always contact the event organiser first.

“In a situation where an event is canceled (notably not when it is rescheduled or postponed) and consumers are unable to receive a refund directly from the organiser, ticket holders can submit a refund request directly to Eventbrite for review.

“Specific criteria and a form to submit a refund request to Eventbrite for canceled events can be found here.”

alex.turner-cohen@news.com.au

Original URL: https://www.news.com.au/finance/money/costs/ceos-bombshell-text-after-company-rejects-customers-refunds/news-story/ad1f1ebeb1841311f6ad43cad928ed37