Digital Economy Bill

Debate between Lord Ashton of Hyde and Earl of Glasgow

Committee: 4th sitting (Hansard - continued): House of Lords
Wednesday 8th February 2017 Lords Chamber

[The Earl of Glasgow (LD)]

My Lords, I support Amendments 230 and 231, to which my noble friends Lord Clement-Jones and Lord Foster of Bath have put their names. I am very aware of the time, so I am going to be very brief. Most of what I wanted to say has already been said. The intention of the two amendments, as I understand them, is to help prevent fans who are keen to attend a concert, sporting event or popular West End show from being misled or ripped off when they buy their tickets from a secondary market on the internet.

The first choice, of course, is to buy tickets directly from the theatre, sporting venue or event organiser. This is known as the primary market, where people pay the advertised price and there should be no problem. But if someone has trouble getting tickets from a primary source they may find themselves resorting to one of the secondary market websites—StubHub and viagogo are two of the best known. The buyer is now in a sort of digital marketplace where buying and selling is the name of the game. If they are lucky they may find what they are looking for but still have to pay considerably more than the face value of the tickets. If they are very lucky, close to the date of the event, they may even have to pay less than the original price. None the less, they have entered a world where fraudsters and touts thrive.

Tickets for popular events may already have been bought up by groups that are only out to make a profit by reselling them. Sometimes many of the tickets have already been hoovered up by bots and offered at an extortionate price. Of course people can always refuse to buy them, but there are those who are want a ticket at any price. Mark McLaren of FanFair has stated that online event ticketing started as a great idea, has grown into a very big business and has now become no less than a racket.

These important amendments attempt to contain and control that racket. The Consumer Rights Act 2015 addresses the issue and tries to regulate those practices, but as my noble friend Lord Clement-Jones said, we seem to be having trouble in enforcing the law. One of the problems is that many of the secondary ticket websites are registered abroad. The recently commissioned Waterson report has made recommendations that should improve the situation, but even that report had to admit that this is a very complex issue, with a lot of potential loopholes. If my noble friend’s amendments can be agreed, that would be an important step in the right direction.

[Lord Ashton of Hyde]

My Lords, I too would, of course, like to pay tribute, on behalf of the Government, to Baroness Heyhoe Flint today. I agree that it is particularly appropriate that we should be discussing this subject today.

In 2015 this House acknowledged the complexity of online ticketing by including the requirement for a review of consumer protection measures relating to online secondary ticketing in the Consumer Rights Act 2015. Professor Michael Waterson conducted that review, and his independent report makes a number of points relevant to these amendments. I will come to the specific question asked by the noble Lord, Lord Clement-Jones, in a minute.

First, Professor Waterson does not recommend a ban on the secondary ticketing market, recognising instead its benefit to consumers. Amendment 231, in the name of the noble Lord, Lord Clement-Jones, on the unauthorised resale of tickets, could in effect ban the secondary ticketing market. There would be no obligation for organisers to approve a resale platform, or to accept returns. As a result there would be no outlet to recoup money for those who found they could not attend an event. Consumers could be left unable to sell any tickets they cannot use, other than through the black market. That would expose buyers and sellers to much greater risk of fraud than using the online secondary ticketing market, which has safeguards and guarantees built in.

Significant market intervention should be carefully considered and consistently applied. Professor Waterson calls for the existing provisions of the Consumer Rights Act to be enforced and tested. We should therefore welcome and await the outcome of the recently announced enforcement investigation by the Competition and Markets Authority.