Live Events Ticketing: Resale and Pricing Practices Debate
Full Debate: Read Full DebateCaroline Nokes
Main Page: Caroline Nokes (Conservative - Romsey and Southampton North)Department Debates - View all Caroline Nokes's debates with the Department for Science, Innovation & Technology
(2 days, 10 hours ago)
Commons ChamberWith permission, Madam Deputy Speaker, I would like to make a statement about ticketing in the live events sector.
In the words of the musical “Hamilton”, there is nothing quite like being
“in the room where it happens”.
I would hazard a guess that every single one of us here can remember the first time we went to a live event. My first rugby international was Wales versus Scotland at Murrayfield aged 12—the food was terrible. My first live gig was U2’s “The Joshua Tree” at Wembley arena. These moments of shared passion are part of what makes us the people we are. As Gloria Gaynor said,
“There’s nothing to compare to live music, there just isn’t anything.”
No wonder live events are so highly prized.
But for far too long, ticket touts have leached off fans’ passion. In the past, it was spivs in long raincoats at the gates. Nowadays it is a trade made all the more pernicious by the internet, which enables modern-day touts, hiding behind multiple false identities, to hoover up tickets and sell them at vastly inflated prices. It is indefensible. It trades off other people’s hopes and does not return a single penny to the artists, the performers, the venue, the industry or the sport. We said we would tackle this, and that is precisely what we are doing.
On Friday, the Department for Business and Trade and the Department for Culture, Media and Sport published a consultation on the resale of live event tickets and a separate call for evidence on pricing practices in the live events sector. It is not a consultation on whether to act; it is a consultation on precisely how we should act. The UK has a world-leading live events sector. Our artists, festivals and venues bring joy to audiences across the country. Last year, the sector employed over 200,000 people, contributing to local economies up and down the country, from stage technicians and sound engineers to venue staff and promoters. Every event—whether a major stadium event or an intimate gig at a grassroots venue—injects life into local communities and economies, supporting small businesses and generating significant revenue for our towns and cities. It is musicians, performers and athletes who make the events what they are and who create the value that sits behind them, not the ticket touts.
Live events are a catalyst for creativity, too, where artists have a platform to hone their craft and relate directly to audiences, as well as to earn a living. Live performances create unforgettable shared experiences that transcend cultural and social boundaries, uniting communities up and down the country and shaping our national identity. However, too many fans are missing out on opportunities to experience those live events. Put simply, the ticketing market is not working for fans.
The Government recognise that a well-functioning ticket resale market can play an important role—for instance, allowing those who cannot attend an event to give someone else the opportunity to go in their place. But far too often tickets are listed on the resale market at extortionate prices, many multiples of the face value. Just one example: standing tickets for Charli XCX’s current UK tour were originally priced at £54, but they have been listed on ticket resale sites for as much as £400. That is enough, as she herself would put it, to
“Shock you like defibrillators”.
So-called scalping is the work of organised touts, who systematically buy up tickets in bulk on the primary market then resell them to fans at hugely inflated prices. The Government are committed to putting fans back at the heart of live events and clamping down on unfair exploitative practices. In doing so, we want fairness for fans and an economically successful live events sector. We made a manifesto commitment to act on this issue, and that is precisely what we will do.
That is why we have launched a consultation as the first major step towards delivering on this ambition. We want to act in an effective and responsible way, ensuring that any new protections work for fans and the live events sector. The consultation outlines a range of potential options to address ongoing problems. We are revisiting the recommendations from the Competition and Market Authority’s 2021 report on secondary ticketing that were not taken forward by the previous Government. They include a licensing regime for resale platforms, new limits on the number of tickets that individual resellers can list, and new requirements for platforms to ensure the accuracy of information about tickets listed for sale on their websites.
We are also keen to tackle scalping—that is to say for-profit resales of tickets above face value. That is why we are considering a statutory price cap on ticket resales, as seen in many other countries. Its purpose would be to break the business model of organised touts by prohibiting resale at vastly inflated prices. In the consultation, we ask how a price cap should be designed and implemented, so as to deliver a genuine sea change in the ticketing landscape to the benefit of fans and the live events sector, and whether it should be face value only, or plus 10%, 20% or 30%.
There is one other aspect—we might call it “the Oasis moment”—on which we are seeking evidence. The live events sector has adopted new approaches to selling tickets in recent years, including the use of new pricing strategies, and technologies such as dynamic pricing. I want to be absolutely clear: not all dynamic pricing is harmful. Fans often take advantage of early-bird tickets and last-minute price reductions—that is absolutely fine and we have no intention of stopping it. The key thing is that fans are treated fairly and openly, with timely, transparent and accurate information presented ahead of sales.
To better understand these changes and the challenges faced by fans, we are publishing a call for evidence on pricing practices in the live events sector. The consultation and call for evidence will be open for 12 weeks. We strongly encourage all interested stakeholders—fans, artists and performers, ticketing platforms and the wider live events sector—to respond. Once the consultation is complete, we will decide on next steps, but the House should be no doubt that we intend to act.
We have a world-class live events sector in the UK, but we do not have a secondary ticket market to match. In the words of T. Rex:
“It’s a rip-off
Such a rip-off”.
To the fans, the performers and the touts, let me be crystal clear: we will clamp down on unfair practices in the secondary market. The question is not whether but how we improve protections for fans. I commend this statement to the House.
I agree that my hon. Friend has campaigned on the subject for 15 years, because I have heard nearly every speech she has made on it, and she has been absolutely magnificent over the years. I pay tribute to her. Many artists in this country will be grateful for her work because so often they are caught in a completely invidious situation as they see tickets going for preposterous prices. I looked earlier at StubHub, which is selling Dua Lipa tickets for Wembley on 20 June with a face value of £81.45 for £2,417. For Jimmy Carr at Milton Keynes in two days’ time, Viagogo has tickets with a face value of £60 for £202. That is the problem that we must deal with.
My hon. Friend is absolutely right about supranational issues; this problem does not just apply in the UK. It is difficult for us to prevent these people from selling tickets for Olivia Rodrigo concerts in Mexico, but we can ensure that measures do apply for Olivia Rodrigo concerts in the UK. She is also absolutely right about enforcement. That is why we are looking at whether there should be a licensing regime and, if so, precisely how that should work. She has made this point in many speeches—I will reiterate it for her: we have hardly seen any prosecutions whatever under the complex set of rules that there are at the moment, and that is one of the things that we have to fix.
I add my thanks to the Minister for advance sight of the statement. It is good to have the Government’s next steps to try to support fans, performers and others working in the live events industry laid out in the announcement. We know the huge value of live events in this country, which make a great contribution to our economic as well as our cultural wellbeing, and it is right that the Government are taking action. Too many fans across the country have fallen prey to sharp practices and touts ripping them off, and the Liberal Democrats are supportive of taking action.
The Liberal Democrats have long called for the implementation of the Competition and Markets Authority’s recommendations to crack down on ticket resale. Those recommendations should be leading the Government forward on this issue. Measures such as capping ticket resales are important. Can the Minister provide greater clarity on the Government’s intentions in that regard? Will he suggest what cap on ticket resales the Government would favour at the moment and what new powers of enforcement they will give to trading standards and the CMA? Beyond those measures, will the Government consider being more ambitious by, for example, giving consumers more control by requiring ticket companies to provide accurate information on price increases or answering Liberal Democrat calls to review the use of transaction fees?
I want to be clear that we welcome the Government’s looking at the queuing systems used by ticket sellers in both the primary and resale markets and considering measures that could address the current situation, which, as the Minister described, too often feels unfair and arbitrary to those fans on the end of it. Hearing the voices of fans in this discussion is undoubtedly important, so we really welcome the consultation, but fans also want to know that the Government will get on and act to solve these problems. To conclude, may I ask the Minister to inform the House about when fans will start to see some changes being implemented?
I welcome the hon. Member to his post and welcome the Lib Dems’ support for what we are proposing. There are just a couple of things. He referred to accurate information, which it could certainly be argued is already legislated for but not well enforced. Indeed, when I looked at some of these sites earlier today, it was interesting to see that sometimes the face value was findable, but not at the same time as the price to be paid. We would think it should be mandatory for somebody to be able to see both at the same time, to see whether they are going to be ripped off. I personally do not subscribe to the line that if somebody is prepared to pay £2,417 for a Dua Lipa ticket, so be it. It seems to me that that is effectively the line from Eurythmics:
“Some of them want to be abused”;
I do not think that we should adopt that policy at all.
On the point that the hon. Member made about transaction fees, I think that I am right in saying that section 230 of the Digital Markets, Competition and Consumers Act 2024 would already apply to what he is arguing for. If I have got that wrong, I will send him a note.
Madam Deputy Speaker, I note that at one point—it may have been at a particular event—you said that your favourite song was “Girls Just Want to Have Fun” by Cyndi Lauper. She performed at the Royal Albert Hall last year, and I am not sure whether you were there.
I commend my hon. Friend on her private Member’s Bill. I told her that we were going to be acting fairly soon so her Bill might not be necessary. She did not believe me, and she ploughed on, but we are intent on acting.
My hon. Friend is quite right about dynamic pricing. I have been involved in a small arts festival in Treorchy in my constituency where we offer early-bird tickets. That is a form of dynamic pricing that I think works for everybody, and we certainly do not want to prohibit that.
My hon. Friend is quite right: much as I like my opposite number, the hon. Member for Meriden and Solihull East (Saqib Bhatti), I find it quite easy to resist him. When I think of the previous Government, I keep thinking of this line from Pink:
“What about all the plans that ended in disaster?”
I welcome the Government’s putting music fans at the forefront of these consultations, although the Minister will know that I would like him to go further and have a full fan-led review of music. Meanwhile, looking at the details of these consultations, it is telling that while Ticketmaster welcomed the resale consultations, it is silent on the dynamic pricing issue. The Minister will recall that Oasis told their fans that dynamic pricing was a
“tool to combat ticket touting”.
Does he agree that if the Government act decisively to stop large-scale touting from inflating ticket prices, there will be less need for promoters such as Live Nation to have to use dynamic pricing?