Live Events Ticketing: Resale and Pricing Practices

Earl of Effingham Excerpts

Thursday 16th January 2025 Lords Chamber

[The Earl of Effingham (Con)]

My Lords, we appreciate the Statement from His Majesty’s Government. As the Minister in the other place said, the Department for Business and Trade and the Department for Culture, Media and Sport have launched a consultation on the resale of live event tickets. That consultation will consider a cap on the price of ticket resales, increasing the regulation of ticket resale websites and apps, and strengthening consumer protections.

All noble Lords will be aware that the resale market plays an important role in supporting artists, fans and venues. Authorised resellers can provide a safe and secure way to transfer unwanted or unusable tickets, which ensures that seats are not left empty at venues and that those who cannot attend events any more are not left out of pocket. This is a mechanism which would seem to be sensible and which we can all support.

Indeed, His Majesty’s Official Opposition, when in government, launched a review of secondary ticketing, led by Professor Michael Waterson, in 2016. We passed the Breaching of Limits on Ticket Sales Regulations 2018, which banned ticket touts from using automated software to avoid security measures designed to help fans see their favourite musicians and sports teams at a fair price.

The Consumer Rights Act 2015 required resellers to inform buyers of the true price of tickets, which should allow fans to make informed and educated decisions on what they choose to purchase. Much was done to protect fans and supporters from unfair practices in secondary ticket markets. Although protecting consumers from bad practice and exploitation is critically important, we should also remember that secondary ticket markets are not new and are no different from other types of secondary market that exist in many different sectors.

The consultation proposals announced in the Minister’s Statement in the other place consider imposing price caps on secondary ticketing. This may, prima facie, sound like an attractive proposal but His Majesty’s Official Opposition are concerned about this increasing the likelihood of a black market emerging. Price caps in other countries have been known to lead to shortages in the availability of goods subject to them and tickets are no different. That view has been supported by the Computer & Communications Industry Association, which has warned:

“Draconian regulation, targeting only the secondary market, will only mean more tickets changing hands in informal settings without the same protections that exist in proper marketplaces”.


Rob Wilson, a professor of applied sport finance, has said:

“There is little doubt that a cap on resale prices will lead to an explosion of underground activity as punters seek market value for their purchases and the flexibility to buy and sell when and how they wish”.


If the proposal for a cap on secondary ticket prices were introduced, what safeguards and extra precautions would the Government take to prevent a rise in scammers and black market ticket reselling?

Another concern we have is the proposal for a ticket resale cap. The issues with such a policy were very well evident at the Paris Olympics, where the restrictions on the resale of tickets meant that many event venues had empty seats. This not only impacted the Olympic venues themselves but meant that many fans could not participate and enjoy seeing their nation compete in a sport that they love following.

This is not the right time to go back over the national insurance contributions debate, but one has only to read Hansard to see that many noble Lords are greatly concerned about the impact that measure will have on the live music and sporting industries. At a time when these sectors already face potential negative headwinds, many of the proposals in this consultation could have further significant and detrimental effects on the venues, not to mention on the fans.

We very much hope that the Government will proceed with a measured approach and carefully consider how such proposals as outlined in this consultation will affect music, sporting venues and, crucially, those who derive so much fun and enjoyment from attending these events.

[Lord Foster of Bath (LD)]

My Lords, unlike the Conservatives, with their somewhat lukewarm response, we on these Benches very strongly welcome the Statement, not least because it is a clear promise of action. We welcome the words of the Minister in the other place, Chris Bryant, that

“the House should be in no doubt that we intend to act”.

To date, there has been too little action to address concerns that have been raised over very many years. Twenty years ago, in the other place, I asked the then Labour Government what they planned to do about widespread concerns about ticket touting. I waited until 2006 to get an answer, which was to call on the industry to find a voluntary solution to ticket touting. After four so-called summit meetings, very little was achieved.

More recently, the same voluntary approach was adopted by the then Conservative Government, who said in response to the CMA’s report and recommendations in 2021:

“The Government believes in the power of competitive markets to give consumers choice and flexibility”,


and concluded that

“it is too soon to conclude that the only way forward is further legislation focused on this market”.

The voluntary approach has not worked.

There have, of course, been some improvements over the years—measures restricting the use of bots have been referred to already—but overall, Governments of all persuasions have failed to seriously address these issues, despite the growing concerns of fans, artists, event promoters, live venues and many others. With the Government doing little, many in both Houses have pressed for action. I pay particular tribute to the noble Lord, Lord Moynihan, who, together with my noble friend Lord Clement-Jones, has doggedly raised concerns and, more importantly, offered solutions to the ticketing and touting issues that are now at last being covered in the consultation.

It is no wonder that the Statement—a statement of intended action—is so widely welcomed, including on these Benches. That is, of course, hardly surprising, since we supported amendments covering many of the points in the consultation paper during the passage of the Digital Markets, Competition and Consumers Act. The FanFair Alliance, which also deserves praise for its dogged campaigning on these issues, has gone so far as to say that the suggested measures “are potentially game-changing”.

The Statement sets out the issues to be addressed very clearly, but while it illustrates the Government’s intended direction of travel, I would have preferred, and wished for, greater clarity about some of the preferred options. I hope the Minister will provide more detail. What is the preferred limit on resale price? Are the Government in favour of a licensing system for resale platforms? Will they prohibit platforms from allowing sellers to list more tickets for an event than the seller can legally procure from the primary market? Will they make platforms strictly liable for incorrect information about tickets listed on their websites?

There are two further issues. Not included in this consultation is dynamic pricing, which is to be consulted on separately. Although I welcome that it is only in relation to the live events sector, I regret that it is not part of the main consultation. Surely it would have been better for implementation if the two were considered alongside each other with the outcomes forming one plan of reform. Can the Minister explain why they are not? Given that we know that the separate consultation is to last 12 months, can she tell us when it will start and how the two consultations will work together?

Finally, it is obvious that there is little point in new legislation unless it is rigorously enforced, but despite existing regulation on bots, for example, we know that there are still cases of them being used. We need tougher enforcement in this area. There are continuing concerns about the black market and even about our ability to deal with touts operating outside the UK. Can the Minister say a little more about plans for enforcement of both existing legislation and the new legislation that will arise following the consultation? Does she accept that a licensing system for resale platforms will be a great help in that enforcement procedure? Is she aware that various bodies, such as the CMA, will be involved? Trading standards departments will certainly be involved, yet in recent years there has been a significant drop in the number of available qualified trading standards officers right across the country.

Trading standards and other enforcement bodies will require additional resources, including to recruit new staff to take on additional responsibilities. What assurances are there that funds will be provided to meet these additional needs? Will the new burdens principle apply, for example?

Our current ticketing market is not working for fans, and voluntary measures will not solve the problems. We have waited too long for action, so we welcome the Statement and the promise of action. I look forward to the Minister’s response.