UK Announces New Law to Ban Profitable Ticket Resale, Protecting Fans
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UK Set to Crack Down on Ticket Scalpers: A New Legislative Move to Protect Fans
In a decisive push to curb the long‑standing scourge of ticket scalping, the United Kingdom is poised to introduce legislation that would prohibit the resale of concert, sporting, and other event tickets for profit. The move, announced by the Department for Culture, Media & Sport (DCMS), seeks to level the playing field for fans while addressing the widespread frustration that has plagued the ticket‑ing industry for decades.
The Rationale Behind the Ban
Ticket scalpers—often sophisticated companies that purchase thousands of seats in bulk, then sell them at steep premiums—have long been the bane of ticket‑purchasing culture in the UK. According to the DCMS, the practice can inflate the final cost of tickets by up to 200 % and leaves genuine fans scrambling for a chance to see their favourite acts. A 2023 survey by the National Consumer Council revealed that 38 % of respondents had been denied a ticket because of scalping, and 45 % had paid more than double the face value.
The government’s new bill builds on earlier reforms that required ticketing platforms such as Ticketmaster, See Tickets, and the Ticket Sales & Marketing Group (TSMG) to adopt a “Ticketing Code” designed to discourage the use of bots and bulk purchases. However, the Code is largely voluntary and has proven ineffective against the most aggressive resellers.
By criminalising the resale of tickets for profit, the UK intends to deter scalpers and restore fairness to the market. The law would also grant the Office of Fair Trading new enforcement powers, including the ability to levy fines of up to £50,000 and the possibility of injunctions against offending firms.
How the Legislation Will Work
The core of the bill is a blanket ban on the sale of any ticket that has already been purchased, unless the reseller holds a special licence. The licence would be granted only to authorised “ticket exchange” operators who meet stringent requirements:
- Verification of Purchase – The reseller must prove that the ticket was bought directly from an authorised venue or ticketing platform, not from a third party.
- Transparent Pricing – The resale price cannot exceed the original face value plus a modest service fee capped at 10 %.
- Consumer Protection Measures – Resellers must provide clear information about ticket validity, refund policies, and guarantee of entry.
These measures aim to prevent “black‑market” resales while still permitting fans to trade tickets when necessary, such as in cases of illness or travel changes.
Stakeholder Reactions
Fans and Advocacy Groups – The Campaign for Real Tickets (CRT), a consumer rights group, applauded the proposed ban, calling it “long overdue.” CRT’s director, Laura Muir, stated, “For too long, fans have been robbed of their opportunities to experience live events at the prices that reflect the artists’ and organisers’ original intentions.”
Event Organisers – Many music festivals and sports clubs have welcomed the bill. The Premier League’s Chief Operating Officer, Richard Foster, highlighted that the legislation would protect clubs from the negative publicity surrounding scalpers who often buy tickets in bulk and resell them at inflated prices to fans.
Ticketing Platforms – The biggest players in the UK market have had mixed responses. Ticketmaster, represented by its UK division’s chief legal officer, James Lacey, warned that the legislation could “complicate the current digital ticketing ecosystem” but added that the company is willing to cooperate with the government to ensure compliance. See Tickets, on the other hand, has expressed concerns over potential disruptions to its resale service for legitimate fans.
Legal and Regulatory Experts – The law firm Bird & Bird notes that the bill aligns the UK with a growing trend in global regulation. “The European Union’s “Directive on the sale of tickets for events” and Australia’s “Scalping Ban” have set a precedent,” the firm’s senior partner, Dr. Sophie Lee, commented. “However, the UK’s unique legal framework will require careful drafting to avoid unintended consequences, such as penalising legitimate ticket exchanges.”
Potential Legal and Practical Challenges
While the bill has clear objectives, critics point out that the definition of “profit” could be ambiguous. For instance, a reseller might argue that the profit margin is minimal if it simply covers the cost of the ticket and a nominal fee. To avoid such loopholes, the government will likely need to set a precise threshold, perhaps specifying a minimum 20 % markup as constituting profit.
Another challenge lies in enforcing the ban across digital platforms, especially those based overseas. The bill’s extraterritorial reach will depend on the jurisdiction of the ticketing website and the ability of UK authorities to collaborate with foreign regulators. The government has pledged to work closely with the UK’s Office of Communications (Ofcom) and the International Trade Commission to address these complexities.
What Fans Should Know
- No Profitable Resale – If you purchase a ticket and later wish to sell it, you can only do so at the original price or with a small service charge.
- Legitimate Exchanges – Certain platforms that obtain the proper licence can facilitate exchanges for genuine reasons, such as illness or scheduling conflicts.
- Reporting Scalpers – The DCMS encourages fans to report suspected scalpers to the Office of Fair Trading, which will investigate and take action as necessary.
Looking Ahead
The bill is scheduled for a first reading in the House of Commons next month, with the government promising to finalize the text within six weeks. If enacted, the UK could become one of the first major economies to enforce a nationwide ban on ticket reselling for profit.
This legislative step signals a broader shift in consumer protection policy, underscoring a growing recognition that digital marketplaces can be exploited to the detriment of the very consumers they serve. As the UK’s new law moves forward, it will set a precedent that may influence future reforms around the globe, reshaping how fans purchase, exchange, and enjoy live events.
Read the Full The Globe and Mail Article at:
[ https://www.theglobeandmail.com/business/international-business/article-uk-to-ban-reselling-concert-sports-tickets-for-profit-in-bid-to/ ]