Tickets For Live Events Are Now Fairer

Touts Targeted as Government Moves to Outlaw Profiteering on Tickets

The United Kingdom government has officially declared its intention to make generating profits from reselling live event tickets an illegal activity. This decisive action aims to dismantle the business model of industrial-scale ticket touts who have long exploited genuine fans. Ministers have confirmed that new legislation will ban the selling of tickets for concerts, theatre, sporting fixtures, and other live events at a price higher than their initial cost. The move follows extensive campaigning from artists, fan groups, and consumer organisations who have highlighted the detrimental impact of secondary sales on the live events industry. This new legal framework is designed to protect consumers from excessive charges and ensure fairer access to cultural and sporting events across the nation.

A Decisive Cap on Resale Prices

Under the newly announced proposals, reselling a ticket for more than its initial purchase price will be prohibited. The initial price will be defined in law as the original cost of the ticket, inclusive of any unavoidable booking fees or service charges applied during the initial purchase. To prevent circumvention of this primary rule, any additional service fees charged by secondary sale websites will also be capped. This measure is specifically designed to stop secondary sellers from inflating the overall cost through hidden charges, thereby undermining the spirit of the legislation. The government's decision marks a significant shift from an earlier consultation that had considered allowing a resale markup of up to 30 per cent.

Ending the Reign of Industrial Touting

 central objective of the new legislation is to eradicate the operations of large-scale, professional scalpers. These operators frequently employ sophisticated software, commonly known as bots, to purchase vast quantities of tickets the moment they are released. These tickets are then listed on resale platforms at hugely inflated prices. To combat this, individuals will be legally barred from reselling a greater number of tickets than they were permitted to acquire in the initial sale. This specific provision targets the bulk-buying practices that have enabled touts to dominate the market for high-demand events, often leaving ordinary fans with no option but to pay extortionate sums or miss out entirely.

Legal Duties for Resale Platforms

The new rules will impose a statutory obligation on all platforms that facilitate the resale of tickets to UK consumers. This includes established secondary ticketing websites such as StubHub and Viagogo, as well as social media sites where private sales often occur. These platforms will be legally required to monitor their listings and actively enforce compliance with the new price ceiling. Failure to do so could result in significant financial penalties. Empowered by new powers granted under the Digital Markets, Competition and Consumers (DMCC) Act 2024, the Competition and Markets Authority will be able to levy fines of up to 10 per cent of a company's global turnover.

The Economic Impact on Fans

The government anticipates that these new measures will provide substantial financial relief for consumers. According to official analysis, the changes could reduce the average cost of a resold ticket by approximately £37. This would collectively save fans across the country an estimated £112 million each year. Research from the Competition and Markets Authority has consistently shown that tickets on secondary marketplaces are generally inflated by over half their initial value. Furthermore, inquiries conducted by Trading Standards have uncovered extreme cases where tickets were sold again for as much as six hundred percent of their initial purchase price, highlighting the scale of the exploitation the new laws seek to end.

A Victory for Fan-Led Campaigns

This legislative action represents a significant victory for numerous artists and campaign groups who have lobbied for reform for many years. Just last week, a coalition of prominent musicians, including Dua Lipa, Coldplay, Sam Fender, and Radiohead, signed an open letter to the head of government imploring officials to honour their election promise to tackle ticket touting. Organisations such as the FanFair Alliance, which was established in 2016, and the consumer group Which?, have been instrumental in providing evidence to parliament about the damage caused by the secondary market. Their persistent efforts have kept the issue in the public eye and pressured policymakers to act decisively.

Broad Industry Support for the Ban

The government's announcement has been met with widespread approval from across the live music and events sector. David Martin, the CEO of the Featured Artists Coalition, stated that online ticket touting has needlessly cost UK music fans hundreds of millions of pounds. He emphasised that a price limitation is the only effective way to curb the excesses of the secondary market. Similarly, Tom Kiehl, who leads UK Music, expressed delight at the government's action, noting that touts have been ripping off music lovers for far too long. This sentiment was echoed by many, including the Music Managers Forum, which has been campaigning on the issue since 2016.

Artists and Managers Welcome New Era

The reaction from artists and their representatives has been overwhelmingly positive. Bastille's lead singer, Dan Smith, who has actively campaigned alongside the FanFair Alliance, called the news a great step towards protecting music fans from being ripped off. Stuart Camp, who manages Ed Sheeran, described the announcement as long overdue for anyone who cares about fans and fair ticket prices. Phil Harvey, the manager for Coldplay, predicted that the legislation, if introduced quickly, would be a game-changer for the fan experience. The consensus is that the new rules will help restore a direct link between artists and their genuine supporters, free from the interference of profiteers.

The Stance of Primary Ticketing Agents

Major players in the primary ticketing market have also voiced their support for the government's plan. The parent company of Ticketmaster, Live Nation Entertainment, issued a statement fully endorsing the ban on resale for a profit. The company highlighted that Ticketmaster in the United Kingdom already restricts resale prices to the initial cost on its platform and sees this legislation as a significant advancement for attendees. This alignment from a key industry entity reinforces the broad consensus that the unchecked secondary market is detrimental to the long-term health of the live events ecosystem, making it harder for events to remain accessible to a wide audience.

Opposition from Resale Platforms

In contrast to the widespread support, major resale platforms have expressed significant concerns about the new legislation. Representatives for StubHub and Viagogo have contended that imposing a price limitation will not solve the problem but will instead drive transactions onto unmonitored websites and social networks. They argue that this could expose consumers to a heightened potential for them to fall victim to scams, with less recourse if something goes wrong. A spokesperson for StubHub International suggested that evidence from other countries with price caps, such as Ireland and Australia, indicates that fraud rates are nearly four times higher than in the United Kingdom, as consumers are pushed towards unprotected platforms.

The Financial Market Reacts

The impending legislation has already had a tangible impact on the financial markets. Following initial reports that the government would proceed with a complete ban on for-profit resale, shares in the US-based company StubHub, which also owns Viagogo, fell sharply by 14 per cent. This immediate investor reaction underscores the financial significance of the UK market to these global resale giants and the extent to which their business models rely on the ability to resell tickets at inflated prices. The market's response signals a recognition that the new regulatory landscape in the United Kingdom will fundamentally alter their operations and revenue streams.

Concerns Over a Potential Black Market

A primary argument from those who oppose the price ceiling is the potential for it to create a thriving black market. They suggest that when professional touts are barred from using regulated platforms, they will simply move their operations to less transparent forums, such as private social media groups and encrypted messaging apps. In such an environment, they argue, consumer protections would be virtually non-existent, and fans could be more vulnerable to counterfeit tickets and outright scams. Resale platforms maintain that a regulated and transparent secondary market, even with higher prices, provides a layer of security and accountability that would be lost if sales are driven underground.

Counterarguments and Consumer Protection

Advocates for the ban dismiss the black-market concerns as scaremongering from companies whose profits are threatened. The FanFair Alliance and other supporter groups argue that the new law, by making for-profit resale illegal, will make it easier for fans to identify and avoid illegitimate sellers. They believe that a clear legal line will discourage many from participating in exploitative practices. Furthermore, the new rules are intended to apply to social media platforms as well, placing a legal onus on them to prevent illegal ticket sales. The consumer group Which? has pressed officials to ensure the legislation is robust and rigorously enforced to prevent loopholes from being exploited.

A Long History of Touting Debates

The issue of ticket touting is not a new phenomenon. For decades, scalpers have operated outside venues, but the rise of the internet transformed the practice into a highly organised, industrial-scale operation. Multiple inquiries into the live music industry and the problem of secondary ticketing have been held over the years by the UK Parliament's committee for Digital, Culture, Media and Sport. These investigations have gathered extensive evidence on the negative impact on both consumers and the creative industries. Despite previous legislative efforts, such as the Digital Economy Act 2017 which banned the use of bots, the problem has persisted, leading to calls for more stringent measures.

The Role of Technology in Touting

Modern ticket touting is a technologically sophisticated enterprise. Touts utilise automated software to bypass digital queues and purchase tickets far faster than any human user can. This allows them to acquire a significant portion of the most desirable tickets for popular events, creating an artificial scarcity in the primary market. These tickets are then immediately listed on secondary platforms. Although officials have previously outlawed the use of these bots, enforcement has proven challenging. The new legislation aims to tackle the problem from a different angle by removing the financial incentive to use such methods in the first place by making the subsequent profiteering illegal.

International Precedents and Lessons

The UK is not the first country to grapple with the issue of ticket touting, and policymakers have been able to observe the effects of different regulatory approaches worldwide. Some countries have implemented strict price caps, while others have focused on greater transparency or licensing schemes for resellers. The varying levels of success in these jurisdictions have informed the debate in the United Kingdom. Those who oppose the price ceiling often point to markets where they claim fraud has increased, while proponents highlight jurisdictions where similar measures are seen to have successfully protected consumers and stabilised prices.

The Path to Legislation

Officials have confirmed their plans and will introduce the required law when parliamentary time allows. Campaigners are urging ministers to act swiftly, arguing that every day of delay allows more fans to be exploited by touts. Culture Secretary Lisa Nandy stated that the government is putting fans first and that the new proposals will shut down the touts' racket, making world-class culture affordable for everyone. Including the law in the upcoming King's Speech will be a key indicator of the government's commitment to prioritising this issue and turning these long-awaited proposals into reality.

Protecting the Grassroots Scene

The impact of inflated ticket prices extends beyond major stadium tours. It also affects smaller, grassroots music venues, which are a crucial part of the UK's cultural ecosystem. When fans are forced to spend hundreds of pounds on a single ticket from a secondary seller, their disposable income for attending other, smaller gigs is significantly reduced. This has a knock-on effect on emerging artists and the venues that support them. By making live events more affordable, it is hoped that the new legislation will encourage wider participation in live music at all levels, fostering a more vibrant and sustainable cultural landscape for the future.

Ensuring Fair Access for All

At its core, the debate over ticket touting is about fairness and access. Live music, theatre, and sport are integral parts of the nation's cultural life, and there is a strong belief that they should not become the exclusive preserve of those who can afford to pay vastly inflated prices. Steve Reed, the Housing Secretary, commented that the practice of touting is hugely damaging, forcing individuals to spend excessive amounts for admission. The government's intervention is framed as a move to democratise access to these events, ensuring that genuine passion, not the size of one's wallet, is the primary factor in being able to attend.

A New Chapter for Live Events

The impending ban on for-profit ticket resale marks a watershed moment for the UK's live events industry. It represents a fundamental shift in the balance of power, away from professional scalpers and back towards artists, venues, and, most importantly, the fans. While the practical challenges of enforcement remain, the clear legislative intent to outlaw profiteering sends a powerful message. For the millions of people who have felt the frustration of seeing tickets sell out in seconds only to reappear at exorbitant prices, this news offers a promise of a fairer, more accessible, and more enjoyable future for live entertainment.