Typical mark-ups on tickets sold on the secondary market are more than 50%, according to analysis by the Competition and Market Authority (CMA), and investigations by Trading Standards have uncovered evidence of tickets being resold for up to six times their original cost.
According to research by Virgin Media O2, ticket touts cost music fans an extra £145 million per year.
To tackle this issue head on, the consultation will explore a range of options to make ticket resales fairer and more transparent, which include:
Introducing a cap on the price of ticket resales - with the consultation seeking views on a range from the original price to up to a 30% uplift, and limiting the number of tickets resellers can list to the maximum they are allowed to purchase on the primary market. These measures would prevent organised touts reselling a large number of tickets at vastly inflated prices and disincentivise industrial scale touting.
Strengthening consumer enforcement – review of existing legislation to bring it up to date, including stronger fines and a new licensing regime for re-sale platforms to increase enforcement of protections for consumers. Trading Standards can already issue fines of up to £5,000 for ticketing rule breaches. The consultation will look into whether this cap should be increased.
The ticket resale market plays a valuable role for consumers and needs to work better for fans. It can provide a legitimate and safe way to transfer unwanted tickets to help more people to attend events. It can also ensure revenues flow back to the creative and live events sector, without fans facing inflated prices due to touts. These measures would apply to a range of events covering sport, music, theatre, comedy and beyond.
Alongside the consultation, a call for evidence is also being launched to investigate pricing practices in the live events sector. The sector has adopted new approaches to selling tickets, including dynamic pricing – when prices are swiftly adjusted to match demand.
While dynamic pricing is not illegal and can sometimes offer cheaper prices to consumers, these practices are changing both how the system works and also the experience of fans buying tickets.
Major events and tours are key cultural moments, which is why it is important that consumers experience openness and transparency when buying tickets, allowing a fair process for fans looking to see their favourite artists or sporting stars.
The call for evidence will seek views on how the ticketing in the live events sector is working for fans and whether the current system provides sufficient protection. It will consider whether there is potential for new harms to consumers to arise from emerging business trends including the use of new technologies and dynamic pricing.
The move follows a manifesto commitment to address the problem of consumers finding it difficult and expensive to attend live events because of ticket touting. The government pledged to put fans back at the heart of events by introducing new consumer protections on ticket resales.