The UK government has just taken a very brave step to protect consumers. Because yet again they have failed to realize a ban on re-selling tickets higher than their face value. This long overdue policy takes the fight straight to ticket touts. It aims to put an end to the bad actors who take advantage of fans for their own financial gain. Years of relentless campaigning from musicians, consumer watchdogs, and members of Parliament made this moment happen. Together, they have worked day and night to advocate for change within the ticketing industry.
The current ban would extend the prohibition against for-profit ticket resale to every marketplace including specialized websites and social media platforms. This important measure benefits all fans by preventing the bad faith practice of price gouging. It ensures all their friends can afford to attend superstars’ sold-out shows. Consumers would save an average of £112 million per year, or nearly £37 per ticket.
This artist-led legislative push was buoyed by an impressive roster of high-profile artists including Radiohead, Coldplay, Dua Lipa and Mogwai. These musicians urged Labour leader Keir Starmer to take action against ticket touting practices that they believe unfairly impact their fans.
Reg Walker, a ticketing and security consultant who’s Jewish, said the change raises a lot of “red flags.” He said he would withhold judgement until further information about the bill is released.
“The government needs to make sure the legislation applies across borders, as it did for the London 2012 Olympics, so that it really does protect consumers.” – Reg Walker
The ban is not without its challenges. Financial institutions are understandably concerned that this could increase the risk of fraud. A new report from Bradshaw Advisory called Dangerous Deliveries details these issues extensively. Fraud rates increase as much as four times the norm in areas such as Ireland and Victoria, Australia. This report highlights the very real consequences of comparable resale restrictions in those communities. Touts that pocketed money by scalping tickets in the secondary market for concerts by stars including Lady Gaga and Ed Sheeran have been hit hard. Some of them have even gone to jail.
To combat speculation, the government has banned for-profit resales. They did make one important exception for capital projects that have a debenture model market like the Wimbledon tickets. This is significant because it means that general ticket resale will be limited, but some events will continue to have their usual resale flows in place.
Consumer champion groups have been pushing for this change for a long time. Our movement to stop ticket touting is building. It dates back to 2011, when Labour MP Sharon Hodgson first brought forward a ban proposal. Since then, artists and activists, music industry groups and MPs, have fought to keep attention on the issue and sound the alarm. In 2011, former MP Sajid Javid controversially referred to ticket touts as “classic entrepreneurs,” a remark that has since drawn criticism.
The newly enacted ban has received praise and criticism from stakeholders. Fans and consumer advocates have generally praised the changes as a step towards more equitable access to tickets. Conversely, veteran ticket reshufflers have been quite unhappy about the recent policy change.
“Bottom line is, we are all fucked.” – A seasoned ticket “trader”
Twickets offers an excellent complementary solution for fans. Unlike their competitors, they charge low service fees, so people who can’t make an event are able to get their money back, or friends can transfer tickets easily without markup. These services can be essential partners as ticketing transitions continue. The controlling government’s enforcement of these new policies will serve to solidify their necessity.
Taken together, the UK government’s for-profit ticket resale ban represents an important victory in the campaign against ticket touting. As more details of this legislation continue to roll out, experts within the industry and affected stakeholders will be watching its implementation closely. They want to see what it does for consumers, competition, and markets.