The Government is poised to prohibit the resale of tickets for live events at inflated prices. It is anticipated that ministers will unveil measures to combat scalpers and secondary ticketing platforms that sell tickets well above their original face value.
The Labour manifesto had pledged enhanced safeguards to prevent consumers from falling victim to scams or being priced out of events by scalpers who often utilize automated bots to snatch up tickets in bulk as soon as they are released, subsequently reselling them at exorbitant mark-ups on secondary ticketing websites.
A consultation process on the proposed changes had sought opinions on potentially limiting prices to a maximum of 30% above the face value of a ticket. However, reports from the Guardian and Financial Times suggest that ministers are likely to enforce a cap at the face value itself, while allowing additional fees to be charged on top of that amount.
The Government has refrained from commenting on these reports. The anticipated move, expected to be announced soon, comes in response to a campaign by prominent figures in the music industry advocating for reduced costs for fans. Coldplay, Dua Lipa, Radiohead, and other artists recently urged the Government to fulfill its commitment to capping resale prices.
Renowned musicians such as Robert Smith from The Cure, New Order, Mark Knopfler, and others, together with organizations including Which?, FanFair Alliance, and O2, have supported the call for a price cap to “rebuild trust in the ticketing system” and promote broader public access to the arts.
Rocio Concha, the director of policy and advocacy at Which?, praised the potential price cap, stating that it would curb professional scalpers and ensure genuine fans have access to tickets at fair prices. The coalition of performers, fans, consumer groups, and the UK music industry is urging the government to prioritize this price cap by incorporating the necessary legislation in the upcoming King’s Speech.
Live Nation Entertainment, the parent company of Ticketmaster, expressed its support for the Government’s initiative to ban ticket resale above face value. The company highlighted its existing policy of limiting all ticket resale in the UK to face value prices and emphasized the importance of cracking down on exploitative practices to maintain accessibility to live events.
However, StubHub, a ticket resale company, cautioned that the proposed move could drive ticket transactions towards the black market. According to a spokesperson for StubHub International, implementing a price cap on regulated platforms may lead consumers to seek tickets through unregulated channels, potentially exposing them to fraud and limited recourse options.
A spokesperson from Viagogo raised concerns about the effectiveness of price caps, citing instances in countries like Ireland and Australia where fraud rates reportedly surged after the implementation of price caps, pushing consumers towards unregulated ticketing platforms.
