UK Government to Ban Ticket Resale Above Face Value
UK Ministers are preparing to unveil new regulatory measures aimed at preventing ticket resale for profit. Expected to be announced within a week, this initiative comes after receiving several petitions from artists advocating against “exorbitant and harmful” ticket touting practices. Notably, prominent musicians like Radiohead, Mogwai, Dua Lipa, and Coldplay collectively demanded stricter controls in an effort to stop scalpers from profiteering.
Following extensive consultations conducted between January and April, the UK government pursued various options to fulfill Keir Starmer’s campaign pledge. While proposals like imposing a 30% limit on resale and introducing licensing restrictions on intermediaries were considered, policymakers ultimately decided to implement a blanket ban on reselling tickets above their original face value. Moreover, attempts to circumvent primary sales regulations by exceeding allowable ticket limits will be strictly prohibited under the incoming legal framework.
By outlawing the resale of tickets above their face value, this sweeping directive seeks to dismantle large-scale scalping operations. Companies such as Viagogo and StubHub, which have thrived on a speculative aftermarket by imposing exorbitant fees on inflated reselling prices, are in line to face significant restrictions. Reportedly, these platforms will be subject to oversight by the Competition and Markets Authority, ensuring compliance with the stipulated guidelines.
Not confined solely to ticket exchange platforms, the legislation aims to extend the ban to encompass social media channels, which might inadvertently transform into unmonitored marketplaces. According to a StubHub representative, imposing price limits on regulated platforms could potentially drive transactions towards illegal black markets, as evidenced by a rise in fraud rates in countries like Ireland and Australia that have implemented comparable price controls.
Reinforcing these concerns, a spokesperson from Viagogo cautioned against the adverse impacts of regulating ticket prices, suggesting that market fraud might escalate on unlicensed websites. Furthermore, in light of the impending regulatory changes, StubHub Holdings witnessed a notable decline in its shares during trading sessions in New York, following a forced divestiture of its UK subsidiary post-merger in 2020. Research by Let’s Stamp it Tout estimates that ticket touting-related price inflation costs consumers £145 million on an annual basis, underscoring the urgent need for legislative intervention.
At the forefront of endorsing the government’s initiative is Live Nation, a key industry player that has expressed full-fledged support for the proposed crackdown on ticket resale. Reflecting on their existing policies that restrict resellers to face value transactions within the UK, Live Nation emphasized the importance of eliminating exploitative practices to preserve accessibility for fans. By embracing this reform, the industry giant hopes to set a positive precedent for other jurisdictions worldwide, advocating for fan-centric regulations to prioritize consumer welfare.
Given these developments, the anticipated ban on ticket resale above face value holds substantial implications for stakeholders across the entertainment spectrum. As the new regulatory framework gears up for implementation, the industry awaits further details on compliance requirements and enforcement protocols, poised to reshape the landscape for concert-goers and event organizers alike.
