UK to Add “Draconian” Resale Regulations in Anti-“Tout” Move

The UK government has announced a plan to add strict new restrictions on ticket prices – but only for resale – in what it frames as a bid to clamp down on the spiraling cost of live events. Specifics have not yet been revealed, but the effort will include limits on what price tickets can be resold for, how many tickets individuals who are not the event promoter to sell, and new rules for ticket resale platforms regarding the accuracy and clarity of tickets being listed on the marketplace.

No new regulations have been proposed for the primary market sale of tickets to events, despite widespread consumer anger over the “dynamic” ticket pricing practice that is centrally responsible for the spiraling ticket prices on both primary and resale ticket markets in the last few years.

“We are taking action to strengthen consumer protections, stop fans getting ripped off and ensure money spent on tickets goes back into our incredible live events sector, instead of into the pockets of greedy touts,” Culture Secretary Lisa Nandy told the BBC. “This has been going on for years, it’s been fleecing fans, and we say time is up for ticket touts, enough is enough.”

A public consultation will be launched this year to consider where the cap on resale prices should be set. It is possible that cap may range anywhere from the original price of the ticket up to 30% above the original price. A separate consultation will be taken on the practice of dynamic pricing, though no plan for new regulations on that behavior has been announced by the Labour government.

Consumer outrage over ticket prices has boiled over in the post-COVID live events space, as event operators have regularly authorized their ticketing platforms to use surge pricing during moments of peak demand such as presales and the first hours of the general sale for high profile events. The Competition and Markets Authority (CMA) – which will be the chief enforcement agency for the new ticketing regulations – opened an investigation into dynamic pricing and its impact on consumers in the wake of the backlash over surged ticket pricing systems used for Oasis’ return to touring in its home country.

“It’s important that fans are treated fairly when they buy tickets, which is why we’ve launched this investigation,” says Sarah Cardell, Chief Executive of the CMA. “It’s clear that many people felt they had a bad experience and were surprised by the price of their tickets at check-out. We want to hear from fans who went through the process and may have encountered issues so that we can investigate whether existing consumer protection law has been breached.”

Ticketmaster has come out in support of the price caps, pointing to the fact that it has capped prices on its own resale marketplaces in the UK at face value since 2018 – meaning that the new regulations will have no impact on its business operations whatsoever while adding significant new constraints on its competition.

Viagogo, which has regularly served as a villain for anti-resale campaigners in the UK, said it would “continue to constructively engage with the government” on the new regulations. The company says it will “look forward to responding in full to the consultation and call for evidence on improving consumer protections in the ticketing market.”

At least one group has come out sharply against the proposed changes, pointing out their strongly one-sided nature. The Computer and Communications Industry Association warned of unintended consequences that may come of such harsh restrictions on the open market for tickets, which may push transactions away from platforms with consumer protections in place and into the black market.

“The secondary market has a vital role giving fans a means to attend events they might have missed when tickets first went on sale and helping people who no longer need their tickets get a good deal,” says CCIA Senior Director Matthew Sinclair.

“Draconian regulation, targeting only the secondary market, will only mean more tickets changing hands in informal settings without the same protections that exist in proper marketplaces. Ministers should address legitimate concerns with a holistic approach that encourages the original sellers of tickets, secondary marketplaces and others involved to all do their bit to make buying and selling tickets an even fairer and safer experience.”