UK Cracks Down on Ticket Resale Prices with New Cap
UK Cracks Down on Ticket Resale Prices with New Cap.
Viagogo and StubHub will be affected by a limitation that allows ticket prices to be set at face value plus a maximum of 30% or lower.
The government has introduced significant proposals aimed at regulating the resale price of tickets for live events, which are intended to combat ticket touting within the industry.
This initiative has been positively received by figures in the music sector, as culture minister Lisa Nandy has initiated a consultation process designed to alleviate the "misery" experienced by fans who have been taken advantage of by ticket resellers, some of whom have profited substantially by selling numerous tickets annually.
Additionally, ministers will examine the concept of dynamic pricing, a contentious strategy employed by Oasis during their reunion tour last year, which resulted in fans discovering a much higher price at checkout than what was initially advertised, leaving them with limited time to make a purchasing decision.
Years of advocacy by politicians, musicians, and the theatre sector have culminated in efforts to curb the activities of professional "resellers" who acquire tickets at the detriment of fans, subsequently selling them at exorbitant prices in collaboration with platforms like Viagogo and StubHub, which take a share of the earnings.
This "secondary" ticketing market has sparked significant discontent among music enthusiasts and individuals purchasing tickets for West End productions such as Hamilton and Harry Potter and the Cursed Child.
The forthcoming public consultation will explore opinions on imposing a cap on resale prices at a 30% increase, as well as restricting the number of tickets that resellers can list to align with the maximum quantity they are permitted to purchase in the primary market.
A representative from the music industry advocacy group FanFair Alliance stated: “These suggested measures are potentially gamechanging. Other countries, notably Ireland, have demonstrated how legislation to prevent the resale of tickets for profit can massively curb the illegal and anti-consumer practices of online ticket touts and offshore resale platforms. The UK simply needs to follow their example.”
The proposals also encompass the establishment of legal responsibilities for resale websites and applications, ensuring that they are accountable to trading standards and the competition authority for the veracity of the information they present to consumers.
It was disclosed last year that ticket touts deliberated on strategies to undermine Labour's ticket cap initiative, a commitment outlined in their manifesto, during a clandestine gathering held in a basement location in London.
Nandy stated: “The chance to see your favourite musicians or sports team live is something all of us enjoy and everyone deserves a fair shot at getting tickets – but for too long fans have had to endure the misery of touts hoovering up tickets for resale at vastly inflated prices.”
The artist and DJ Fatboy Slim expressed his approval by stating, “Great to see money being put back into fans’ pockets instead of resellers.”
These initiatives received support from the music industry organizations UK Music and Live, as well as the consumer advocacy group Which?
A representative from Viagogo commented: “We will continue to constructively engage with the government and look forward to responding in full to the consultation and call for evidence on improving consumer protections in the ticketing market.”
Secondary ticketing platforms have previously asserted that imposing a cap on resale prices would result in a rise in outright ticket fraud, wherein criminals distribute counterfeit tickets.
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The proposed government measures to cap resale prices and regulate secondary ticketing platforms like Viagogo and StubHub represent a positive step towards protecting consumers. By limiting resale markups to 30% and restricting ticket listings to the number initially purchased, the new rules aim to restore fairness and accessibility for fans.
The consultation process offers a chance for stakeholders to provide input, ensuring the policies reflect the needs of both the public and the music industry. With broad support from musicians, advocacy groups, and consumers, these changes could transform the live event ticketing market for the better.
