UK to Ban Ticket Resale Above Face Value, Following Ireland’s Lead
Table of Contents
the UK government is set to ban the resale of tickets for events above their original face value, a move aimed at protecting fans from exorbitant prices and tackling ticket touting. This new legislation will cover all platforms reselling tickets to UK fans, including secondary ticketing sites and social media marketplaces, with potential penalties reaching up to 10% of a company’s global turnover for violations. The initiative follows years of frustration from music and sports enthusiasts who have witnessed tickets for popular events being sold for considerably inflated prices shortly after initial release.
The Problem of Ticket Touting & Bots
For years, fans have expressed anger over the practice of ticket resale at inflated prices.High-demand events, such as concerts by artists like Harry Styles, Taylor Swift, and Oasis, have seen tickets appearing on resale platforms for several times their original cost almost instantly after selling out on primary ticketing sites. https://www.reuters.com/world/uk/uk-ban-ticket-resale-above-face-value-2024-02-08/
Adding to the problem is the use of automated bots that circumvent online queuing systems, allowing individuals and companies to purchase large numbers of tickets and resell them for profit, effectively blocking genuine fans from accessing them. Thes practices have created a secondary market where prices are driven up by supply and demand, frequently enough leaving dedicated fans priced out.
New Regulations & Penalties
The upcoming UK legislation aims to address these issues by:
* Capping Resale Prices: Tickets cannot be resold for more than their original face value.
* Platform Accountability: All platforms facilitating ticket resale to UK fans will be subject to the regulations.
* Service Fee Limits: Service fees charged by resale platforms will be capped to prevent companies from circumventing the price restrictions by adding excessive fees.
* Meaningful Penalties: Companies found in breach of the regulations could face fines of up to 10% of their global turnover.
Ireland’s Experience: A Model for the UK?
The UK government has looked to other countries, including Ireland, for guidance on tackling ticket touting. Ireland’s Sale of Tickets Act 2021 prohibits the resale of tickets above face value for events and venues within the scope of the law, typically those considered high-demand. https://www.gov.ie/en/publication-99461-sale-of-tickets-act-2021/
Under the Irish law:
* It is illegal to advertise or sell tickets above the original price.
* Exemptions exist for registered charities and amateur sports clubs.
* Breaches can result in fines of up to €100,000 or a prison term of up to two years.
The UK government’s consultation on ticketing reform specifically cited Ireland as a accomplished example of price restriction.
Industry Reaction
The announcement has drawn mixed reactions.Shares in StubHub, a US-based resale platform owned by Viagogo, fell approximately 14% following reports of the planned legislation. https://www.reuters.com/world/uk/uk-ban-ticket-resale-above-face-value-2024-02-08/ Viagogo criticized the approach, arguing that similar price controls in other countries have driven sales to less regulated platforms and increased fraud rates. They point to higher fraud rates in markets like Ireland and Australia as evidence of this effect. However, proponents of the ban argue that increased regulation is necessary to protect consumers and ensure fair access to tickets.
Key Takeaways
* The UK is banning the resale of tickets above face value to combat ticket touting.
* The legislation will apply to all resale platforms, including social media.
* Significant financial penalties will be imposed on companies that violate the rules.
* Ireland’s Sale of Tickets Act 2021 serves as a model for the UK’s approach.
* The industry response is mixed, with concerns raised about potential shifts to unregulated markets.
Looking Ahead
The implementation of this legislation marks a significant step towards fairer access to tickets for UK event-goers. While concerns remain about potential unintended consequences, such as a shift towards less regulated resale channels, the government hopes the ban will create a more transparent and equitable ticketing market. The effectiveness of
Keep reading