Britain is preparing to ban the resale of tickets for live events such as concerts, theatre and sport at prices above face value, the government said on Tuesday. Housing minister Steve Reed told the BBC the practice of ticket touting, where people buy tickets only to resell them at multiples of their original price, is “hugely damaging” for fans who end up paying “through the nose” to attend events.
He said ministers will set out detailed plans in the coming days and repeated that the government is “committed to ending the scandal of ticket touts.”
Why ticket touting is under fire
Tickets for major events in the UK, such as Oasis’s reunion tour this summer, routinely appear on resale sites within minutes of selling out, often at heavily inflated prices.
Earlier this year the government consulted on the option of capping resale prices at up to 30% above face value. According to a report in The Guardian, ministers have now shifted towards a full ban on resale above face value, along with a cap on the fees that platforms can charge on each transaction.
Impact on resale platforms
The policy shift has already hit listed companies. Shares in US based StubHub, owner of resale site Viagogo, fell 14% on Monday after reports that the Labour government would press ahead with a ban.
Separately on Tuesday, the UK’s Competition and Markets Authority (CMA) said it had opened investigations into the pricing practices of several online ticket platforms, including StubHub, which operates separately from the US listed parent, and Viagogo.
The CMA will examine whether platforms comply with consumer protection law, including how clearly they display prices, fees and availability to buyers.
Source: Reuters