Ticket Abuse

Debate between Andrew Bingham and Mike Weatherley

Tuesday 21st January 2014 Westminster Hall

[Mike Weatherley]

The argument goes that the creator will still get the same sort of money, but that is not true, especially if there is an audience that they want to target. Taking away control from performers also takes away control of how money is distributed. I have no problem with a band giving a promoter tickets to sell on the secondary ticket market, if they want to generate additional income. However, the process should be transparent.

My hon. Friend did not mention the fact that the Treasury is disadvantaged by the practice. There are people who do not pay VAT or tax on their secondary ticketing sales, and that is wrong. If they make a profit from someone else’s activity, I do not see how he can disagree about their paying that.

In 2011, I supported the private Member’s Bill on ticket touting promoted by the hon. Member for Washington and Sunderland West (Mrs Hodgson). The sensible suggestion that profits from re-selling should be limited to 10% more than the face value of the ticket has already been adopted in some Australian states. We can argue about whether 10% is the correct amount, as there could be ticket fees and so on in addition.

[Andrew Bingham (High Peak) (Con)]

That would not work, because it would drive certain people to the underground market, as they would have to get more than 10%. Surely it would be back to blokes outside concert venues shouting “Tickets, tickets, tickets.”

[Mike Weatherley]

I tend to agree. I am not that worried about the odd ticket tout outside a venue, but I am worried about people making money from a bank of about 1,000 computers in a room the size of this one automatically buying tickets, when they have no intention of going to the gig. Those are not touts as we know them. Things have substantially changed since 2006-07. We are in a completely different sphere of ticket purchasing. Those people do not buy tickets for any other reason. The solution of a 10% limit on reselling would stop the people who buy purely intending to resell, rather than to go to the gig, who take rights away from the intellectual property creator.

Even for those who have not personally had experience of ticket touts, the extent of the problem is illustrated by the lengths to which they go to subvert ticketing controls. A potential solution to touting, which has been adopted by some venues already, is credit card verification, and many other methods are available. Nevertheless, touts often generate such large profits from many events that even that method is ineffective.

That does not, of course, address the issue of completely fraudulent tickets. When people buy, or are driven to buy, from a ticket reseller, they expose themselves to a greater risk. It is not uncommon for someone to buy tickets through a website that looks genuine, and make travel and accommodation plans to attend the event, only to discover when they arrive at the venue that their tickets are fakes. I take the point made by my hon. Friend the Member for Shipley that such activity is already illegal, but secondary ticketing makes such illegal activity easier.

The Metropolitan police published a comprehensive report on fraudulent ticketing and the danger it posed to the Olympics that specifically cited ticket fraud, touting and ticket reselling websites as areas of concern. Among several issues, the Met noted that websites with their servers based overseas were causing serious problems by advertising fraudulent tickets and then making it difficult for law enforcement agencies to track the offenders or shut down illegal sites. That is an irrefutable fact, and the Culture, Media and Sport Committee did not address it in 2007.

The Met’s report stressed, as I do, the need for an open and transparent system for ticket reselling, with clear and appropriate regulations. Transparency is the key to protecting not just content creators but ticket buyers from dubious and misleading transactions. It is common in the entertainment industries for all or part of the fee for professionals involved in an event to be paid in tickets. The venue might be paid in tickets to a corporate box, or a promoter or manager might be given them as part of their fee. That is done with the tacit understanding that the recipients of those tickets will subsequently be able to sell them on for significantly more than their face value. It is, of course, the prerogative of the content creators to do that if they want to, but it should be done transparently.

Some of my colleagues, including my hon. Friend, have suggested that trying to regulate ticket touting represents an interference in the natural free market. However, that is a misunderstanding of one of the key principles of the free market—the ability of a market to respond to demand by increasing supply. That is one of the five conditions of a free market. In the case of sports matches or live music, there is no way to increase supply. There are only so many games in the season and bands can only play so many dates.

Secondary Ticketing

Debate between Andrew Bingham and Mike Weatherley

Tuesday 13th March 2012 Westminster Hall

[Mike Weatherley]

I thank the hon. Lady for her intervention and I applaud her efforts in this field, without which I would never have been alerted to the issue. I thank her for that. I agree and France does, too. As I said, France has gone live today with a law specifically about this form of ticket touting, which is along the lines of the hon. Lady’s private Member’s Bill, which although introduced did not get past the next stage.

I am not advocating that every ticketed event be subject to additional legislative support. Many artists and events will be happy for the secondary market to buy and sell their tickets, but those that wish to have protection should be able to apply for support under law, in the same way the Olympics did. If it is good enough for the world’s premier sporting event, it should be good enough for our creative industry, which is worth protecting before we lose the world-beating position Britain currently enjoys.

[Andrew Bingham (High Peak) (Con)]

Does my hon. Friend agree that, whereas in days gone by people queued to buy tickets and paid cash, many tickets are now bought online via different means and that is another example of how the internet and online communication are moving at a pace? We should move to use that to help us to prevent the scenarios that he is outlining.

[Mike Weatherley]

I agree. Some 20 years ago, ticket touting at events was a quaint issue, but now it is on an industrial scale. We live in rapidly changing times. I agree that the internet is a huge game changer. The UK Government need to catch up.

It is worth noting, as I said earlier, that a secondary ticketing law goes live in France today. The French are leading the way, the Olympics demanded it, the music industry is begging for action and the fans certainly want it, but what is lacking is our Government’s grasp of the overwhelming evidence for action.