The Government is poised to announce a prohibition on reselling tickets for live events at inflated prices. This initiative aims to combat scalpers and secondary ticketing platforms that often use automated bots to purchase tickets in bulk during initial sales, subsequently reselling them at exorbitant markups.
Previously, the Labour manifesto had pledged enhanced safeguards to prevent consumers from falling victim to scams orchestrated by scalpers who exploit the system for profit. Discussions surrounding the proposed changes considered imposing a cap limiting resale prices to a maximum of 30% above the face value. However, recent reports from the Guardian and Financial Times suggest that the Government may opt for a stricter approach by setting the limit equal to the face value, allowing additional fees to be charged on top.
While the Government has refrained from commenting on these reports, speculation suggests that the announcement, possibly scheduled for Wednesday, follows advocacy efforts by prominent music figures like Coldplay, Dua Lipa, and Radiohead. These artists, along with others such as The Cure’s Robert Smith and Iron Maiden, have urged the Government to fulfill its promise of capping resale prices to make events more affordable for fans.
Support for the proposed price cap has been widespread, with backing from various industry bodies, including the likes of Which?, FanFair Alliance, and O2. These organizations, representing music, sports, and entertainment sectors, emphasize the importance of restoring trust in ticketing systems and ensuring fair access to cultural events for the public.
Live Nation Entertainment, the parent company of Ticketmaster, has endorsed the Government’s initiative to ban ticket resale above face value, applauding the move as a positive step towards curbing exploitative practices in ticketing. Conversely, StubHub has expressed concern that imposing price caps could drive ticket transactions into unregulated black markets, potentially exposing consumers to risks like fraud and limited recourse.
In response, Viagogo has cited instances from countries like Ireland and Australia where price caps allegedly led to higher fraud rates, cautioning that such measures could inadvertently push consumers towards unregulated ticketing platforms.
