The Government is poised to outlaw the resale of live event tickets for profit. Ministers are expected to reveal measures aimed at curbing touts and secondary ticketing platforms that inflate ticket prices well above their original value.
The Labour manifesto had pledged to provide enhanced safeguards to prevent consumers from falling victim to scams or being priced out of events by touts who use automated bots to snatch up tickets in bulk as soon as they are released, only to resell them at exorbitant markups on resale websites.
A consultation on the proposed changes had sought public opinion on limiting resale prices to a maximum of 30% above face value. However, reports from the Guardian and Financial Times indicate that the government is likely to set the cap at face value, with the possibility of additional fees being charged on top of that price.
The Government has refrained from commenting on these reports. The potential announcement, expected to be made on Wednesday, comes in response to a campaign by prominent music artists advocating for price controls to benefit fans. Coldplay, Dua Lipa, Radiohead, and other musicians recently urged the Government to honor its commitment to restrict resale prices.
Renowned artists such as Robert Smith of The Cure, New Order, Mark Knopfler, and others have joined forces to call for a price cap that would “rebuild trust in the ticketing system” and “promote equal access to the arts for the public.”
Various stakeholders, including Which?, FanFair Alliance, O2, and associations representing the music and theater sectors, have voiced support for the price cap initiative. Rocio Concha from Which? lauded the move, stating that it would combat professional touting and ensure fair access to tickets for genuine fans who had missed out during initial ticket sales.
Live Nation Entertainment, the parent company of Ticketmaster, endorsed the Government’s proposal to prohibit ticket resale above face value. They emphasized that Ticketmaster already enforces a policy limiting resale to face value prices, applauding the crackdown on exploitative reselling practices to maintain accessibility to live events.
However, StubHub, a resale company, cautioned that the price cap could inadvertently drive ticket transactions to illicit markets. According to a spokesperson, regulating prices in authorized marketplaces could lead to an increase in black market activities, posing risks and challenges for consumers.
Viagogo also expressed reservations about price caps, citing instances from other countries where such measures allegedly led to higher fraud rates. They warned that price restrictions might divert consumers towards unregulated platforms, potentially compromising safety and consumer protection.