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According to analysis by the CMA, event tickets currently sold on the resale market are typically marked up by more than 50%.
Back in January, the government consulted to improve its understanding of ongoing problems in the ticket resale market and to seek views on potential proposals aimed at improving fairness for fans. In addition, it ran a call for evidence on pricing practices in the live events sector. It has now published the outcome of the consultation.
Price cap
The government intends to introduce both a cap on resale prices – based on the original price paid for the ticket inclusive of unavoidable fees – and a cap on service fees chargeable by resale platforms, to ensure there is no mechanism by which profits from resale can be funnelled back to touts.
Volume limits
To support the anti-touting price cap, the government will ban individuals from reselling more tickets than they could have purchased in the primary sale.
Platform obligations
The government will seek to impose strict obligations on platforms to enforce compliance with the price cap on their sites. However, the government does not propose to require platforms to enforce prohibitions on volume limits or impose further verification requirements. It says that a thriving independent resale sector provides great benefit to fans, and so it has no wish to stifle it, so long as platforms show they can robustly and consistently enforce a price cap.
Enforcement
The government says that it recognises that robust enforcement of the new rules, against resale platforms as well as touts, will be critical to their success. The government will provide for the new rules to be enforceable through part 3 of the Digital Markets, Competition and Consumers Act 2024, enabling the imposition of fines of up to 10% of global turnover for breaches.
Exemptions
There will be two exemptions: the first relates to Wimbledon debentures which are a type of financial product; and tickets sold for charitable purposes. Tickets to be resold by registered charities in excess of the price cap for fundraising purposes will be permitted where authorised by the event organiser. The government says that it will continue to examine how these exemptions could be defined and administered in a way that would not risk undermining the overall effectiveness of the price cap, before it introduces legislation.
In addition, football ticket sales in the UK are covered by existing legislation. Under the Criminal Justice and Public Order Act 1994, it is an offence to offer for sale tickets to a football match unless you are authorised to do so.
No licensing requirements
The government also suggested a licensing scheme in its consultation but, having considered the responses, it has decided not to take forward a licensing regime right now, although it will keep the situation under review.
What happens next?
The government will legislate to implement the above reforms when parliamentary time allows.
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