The Government is poised to introduce a ban on the resale of live event tickets for profit. This initiative aims to combat ticket touts and secondary ticketing websites that inflate ticket prices well above their original face value.
The Labour manifesto had pledged to provide enhanced safeguards to shield consumers from scams and exorbitant prices orchestrated by touts. These individuals often utilize automated bots to purchase tickets in bulk as soon as they are released, subsequently reselling them on secondary platforms at significantly higher prices.
Although initial discussions included proposals to cap resale prices at a maximum of 30% above face value, recent reports from the Guardian and Financial Times suggest that the Government is leaning towards implementing a cap at face value. Additional fees may still be applicable on top of the ticket’s face value.
While the Government has refrained from commenting on these reports, there are indications that an official announcement could be made soon, possibly as early as Wednesday. This move comes in response to advocacy efforts by notable music figures like Coldplay, Dua Lipa, and Radiohead, who have urged the Government to honor its commitment to restricting resale prices.
Renowned artists such as The Cure’s Robert Smith, New Order, Mark Knopfler, and others have also joined the cause, emphasizing the necessity of a price cap to bolster trust in the ticketing system and promote broader public access to cultural events.
Various industry stakeholders, including watchdog organizations, music and theatre associations, venues, and ticket retailers, have endorsed the price cap proposal. Rocio Concha from Which? hailed this development as a positive step towards curbing scalping activities and ensuring genuine fans have access to tickets at fair prices.
Support for the ban on ticket resale above face value has also come from Ticketmaster’s parent company, Live Nation Entertainment. The firm expressed its full backing for the Government’s plan, emphasizing the need to eliminate exploitative practices in ticket resale and maintain accessibility to live events.
However, StubHub, a prominent resale platform, has raised concerns that enforcing a price cap could inadvertently drive ticket transactions towards unregulated black markets. The company warned that such a shift could expose consumers to risks such as fraud and limited recourse options.
Similarly, Viagogo cautioned against the potential negative impact of price caps based on experiences in other countries like Ireland and Australia, where fraud rates surged due to restrictions, pushing consumers towards unregulated ticketing platforms.