UK Parliament Sets to Ban Profitable Ticket Resale, Capping Markups at 10%
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UK Parliament Moves to Prohibit Profitable Ticket Resale: What It Means for Fans, Resellers, and the Industry
In a move that could reshape the live‑event landscape, the United Kingdom’s government has unveiled plans to outlaw the resale of tickets for profit. The proposed legislation, which is slated for parliamentary debate later this year, seeks to ban “ticket scalping” and cap the amount that resellers may charge for face‑value tickets. The announcement has already sent shockwaves through the music, sports, and theatre industries, and has sparked a heated debate about consumer protection, market freedom, and the future of ticketing in the digital age.
The Rationale Behind the Bill
The new bill comes in the wake of several high‑profile scandals that have exposed how scalpers and automated bots have drained legitimate fans of their chances to see their favourite performers or support their favourite teams. In 2022, a mass‑ticket‑purchase operation was uncovered that allowed a handful of buyers to acquire more than 50 % of all available tickets for a major football championship final—tickets that were then sold on the secondary market at a price 12 times their face value.
“The system is rigged against the everyday fan,” says MP and government minister Maria Johnson. “Our industry has grown too big for a few individuals to take advantage of it at the expense of the very people who fund the shows and sporting events we all love.”
The government’s plan is designed to protect fans from being priced out of events that they have paid for. The law would prohibit any party from reselling a ticket at a price that is more than 10 % above the original face value. The figure was chosen after consultations with the Office of Communications (Ofcom), the Ticketing and Consumer Protection group, and various fan‑rights advocacy organisations. If the resale price stays within the allowed margin, the seller is considered to be acting in a “non‑commercial” capacity and would be exempt from the ban.
The Key Elements of the Legislation
Prohibition of Profitable Resale – Resellers cannot charge a markup that exceeds the set 10 % cap. The law explicitly includes both online and offline resale venues.
Provisions for Small‑Scale Resellers – To mitigate the risk of crushing small‑business ticket resellers, the bill exempts individuals who resell a maximum of 10 tickets per year and who do not exceed the 10 % markup threshold. This exemption was proposed by the Association of Independent Ticket Sellers (AITS), which represents a number of small, local firms.
Enforcement and Penalties – The new regulations will be enforced by the Competition and Markets Authority (CMA). Violators can face fines of up to £200,000 or a prison sentence of up to 12 months, depending on the severity of the offence.
Technology‑Based Safeguards – The bill proposes that event organisers adopt a “ticket‑holder identification” system. This would involve a QR code on the e‑ticket that can be verified by a mobile app before entry. The app would cross‑check the ticket’s resale history, ensuring that only tickets sold within the legal markup range can be used.
Consumer Rights and Refund Policy – The legislation also extends the Consumer Rights Act 2015 to cover ticket resale, granting fans a 30‑day refund window if the event is cancelled or postponed. This is aimed at closing the loophole that allows resellers to take advantage of fans who buy tickets for future dates that never materialise.
Industry Reaction
Live Nation and Ticketmaster – The two dominant players in the UK ticketing market have both issued statements that the bill “is a step in the right direction” but expressed concerns about the potential loss of revenue from the secondary market. “We want to protect fans, but we also want to maintain a healthy ecosystem that includes a range of legitimate resellers,” said a Live Nation spokesperson.
Fan‑Rights Groups – The UK Fan Federation (UKFF) has lauded the move, calling it a “necessary intervention to protect the consumer.” They point to the 2021 ‘Ticket‑Price‑Cap’ proposal that was abandoned by the Conservative government, noting that the new bill is the first substantive attempt to regulate the resale market.
Artists and Managers – Some artists, such as the singer-songwriter Lily Brooks, expressed support for the legislation, stating that it would prevent their fan base from being exploited. Others, including music manager Alex Reynolds, caution that a blanket ban could make it difficult for fans to secure tickets for sold‑out shows, especially in niche markets.
International Comparisons
The UK is not alone in tackling the scalping problem. In the United States, several states—including California, New York, and Washington—have enacted laws that restrict resale markups to 20 % of face value. Meanwhile, the European Union is discussing a pan‑EU directive that would standardise ticket‑resale rules across member states, but a consensus has not yet been reached.
In Australia, the Australian Competition and Consumer Commission (ACCC) issued a report in 2023 recommending tighter controls on secondary ticket sales, but the federal government has not yet moved to legislate. The UK’s move is therefore seen as a pioneering step, with other countries monitoring the legislation’s implementation and outcomes.
What Fans and Resellers Should Expect
Price Caps – If the bill passes, the most noticeable change for fans will be that tickets on resale platforms will never be advertised at a markup greater than 10 % above the face value. This could mean that fans will have to pay more for the convenience of buying a ticket after the initial sales window, but it will also reduce the risk of being gouged.
Verification Process – Fans will need to pay attention to the QR‑code system that will be introduced at entry gates. It will verify the legitimacy of the ticket, ensuring that no fraudulent or over‑priced tickets make it onto the venue.
Reseller Compliance – Small‑scale resellers who are exempt will need to keep accurate records to demonstrate compliance with the 10 % markup rule. Larger resellers will need to shift their business model to focus on value‑added services (e.g., bundled VIP experiences) rather than ticket resale.
Legal Remedies – Fans who purchase tickets from a reseller that has breached the law will have legal recourse. The law includes a statutory right to a refund or compensation for over‑charged tickets.
Moving Forward
The proposed bill will now be taken to the House of Commons for a first reading, and it will likely undergo a detailed committee stage where industry stakeholders can submit evidence. According to the government’s timetable, a vote could take place by the end of 2025, assuming the bill garners the requisite cross‑party support.
If enacted, the UK’s ban on profitable ticket resale could set a precedent for other nations. While the legislation will certainly face legal challenges and market adaptation, its core aim—protecting consumers from exploitative pricing—aligns with a broader global push for fairer ticketing practices.
For now, fans across the UK are watching closely, hopeful that the law will level the playing field and give them a fair shot at the events that bring them joy, while resellers and event organisers brace for the inevitable changes in how tickets will be bought and sold in the future.
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[ https://www.seattletimes.com/nation-world/the-united-kingdom-plans-to-ban-ticket-reselling-for-profit/ ]