Government Poised to Ban Ticket Resale Above Face Value
A crackdown on exploitative ticket pricing is imminent, with the UK government reportedly preparing to outlaw the resale of live event tickets for more than their original face value. The move comes after years of complaints from music and sports fans about inflated prices driven by ticket touts and automated buying programs.
The practice of reselling tickets at exorbitant markups has long been a source of frustration. Fans have frequently found events sold out within minutes, only to see tickets reappear on secondary markets at drastically inflated prices. This is often facilitated by bots – automated applications designed to circumvent purchasing limits and secure large blocks of tickets immediately upon release. Operators of these bots can be located anywhere in the world, making enforcement challenging.
From 30% Cap to Face Value Limit
A government consultation previously explored a potential cap of 30% above the original cost, but reports from The Guardian and Financial Times indicate ministers are now leaning towards a complete ban on resale above face value. Additionally, officials are expected to implement caps on the service fees charged by ticket vendors.
While the government declined to comment when approached by Sky News, sources suggest an official announcement could arrive as early as Wednesday. The Labour Party, which made ending “rip-off tickets” a key pledge in its manifesto, has remained largely silent on the issue since the consultation concluded seven months ago.
Industry and Artist Support
The proposed legislation has garnered significant support from within the entertainment industry. A coalition of artists, including Dua Lipa, Coldplay, Sam Fender, Iron Maiden, and Radiohead, last week publicly urged the government to act, calling for a restoration of “faith in the ticketing system.”
The Football Supporters’ Association, several ticketing companies, and organizations representing the theatre and music industries also signed the statement. Live Nation Entertainment, the parent company of Ticketmaster, has voiced its “full support” for the ban, noting it already has a similar policy in place.
Secondary Market Concerns and Price Examples
The landscape of the secondary ticket market is currently varied. Some UK-based platforms already enforce a face value cap or limit markups, while others allow prices to soar far beyond the original cost. For instance, tickets for Radiohead’s Saturday show in London were listed on resale sites like Viagogo and Stubhub for as much as £700 for standing room – a significant increase from the official price of £85. Seating was offered for around £400, compared to an official range of £75 to £195 (plus fees).
These prices pale in comparison to the extreme markups seen earlier this year during the anticipated Oasis reunion shows, where consumer group Which? documented tickets being offered for as high as £4,442.
Fears of a Shift to the Black Market
However, some secondary ticketing platforms have warned that a price cap could drive transactions underground. A spokesperson for StubHub International cautioned that the measure would “condemn fans to take risks to see their favourite live events,” arguing that a regulated market becoming a black market would inevitably lead to increased fraud, fear, and a lack of consumer protection.
Viagogo echoed these concerns, stating that regulated price caps have “repeatedly failed fans,” citing higher fraud rates in countries like Ireland and Australia – where price caps are in effect – compared to the UK. According to the company, fraud rates are nearly four times higher in those nations as consumers are pushed towards unregulated sites.
