Secondary Ticketing Market

Emma Foody Excerpts

Thursday 24th October 2024 Westminster Hall

[Emma Foody (Cramlington and Killingworth) (Lab/Co-op)]

I beg to move,

That this House has considered the secondary ticketing market.

It is a pleasure to serve under your chairship, Mr Rosindell. I am delighted to see so many other Members who have long campaigned on this issue, including my north-east colleague, my hon. Friend the Member for Washington and Gateshead South (Mrs Hodgson), and I look forward to her contribution. I also thank organisations such as the FanFair Alliance for their hard work on this matter, and the Co-operative party for its End the Ticket Price Rip-off campaign.

Live sport, music and entertainment brings joy to millions of people every single week. Whether it is watching their favourite team or going to a gig, concert or play, people save up for events, wait in online or telephone queues and eagerly anticipate games and shows. I am sure that that is something just about everyone in this country has experienced, and we can all think back to our favourite game, gig, concert or play. They are memorable events that we remember for decades—moments shared with friends, family or partners that last a lifetime. Members need not worry—I will not go around the room and ask everyone about their first gig or their favourite one, or about that live sporting fixture that lives with them forever.

Growing up, my friends and I would save our pocket money or our paper round money, and we would queue up at local music shops such as Pet Sounds to get tickets to gigs, generally at the local universities. As true millennials, we got to see loads of our favourite punk bands—NOFX, Bowling for Soup, and Spunge being just a few. For those who think that punk is just a phase, I am looking forward to the Tour of the Setting Sum farewell tour by Sum 41 next week.

These are formative moments and cherished memories, but for everyone who gets to enjoy them, there are those who have missed out—those who were not able to secure tickets and make those memories. Far too often, those consumers are then left at the mercy of what is the topic of today’s debate—the secondary ticketing market. The issue profoundly affects music and sport fans, event-goers and the integrity of our live entertainment industry, but it appears to be inadequately addressed by current regulatory frameworks. People understand that they will not always get a ticket to the show, gig or game, but they feel a real sense of injustice at the scale of secondary ticketing platforms, with tickets often appearing just moments after people have attempted to purchase them. While allowing a space for those tickets to be resold is important, it is also important that that is not to the detriment of consumers.

The industry is vast, with one in five tickets ending up on secondary platforms, so the need for education and measures to protect consumers is becoming increasingly clear. Recent findings from O2 show that consumers lose an estimated £145 million each year due to inflated resale prices, which are pricing many out of the events and experiences they love. A study by ITV News and the FanFair Alliance found that over two thirds of resale tickets for 174 festivals and outdoor events were being offered by just three traders, who collectively sought to profit by almost £1 million.

Earlier this year, it was reported that two prolific touts were jailed after buying tickets for high-profile gigs and reselling them on secondary sites for up to 500% of their original cost, with the scheme being worth more than £6.5 million. Worryingly, with technology, the issue is becoming more and more prevalent. In just six weeks, O2 prevented 50,000 suspected bots from accessing its Priority platform, with those tickets almost guaranteed to end up on resale sites and other people losing out. I will touch a little later on the practice of ticket harvesting, and while some progress has been made to prevent it, new technologies and techniques continue to circumvent the measures in place.

With that as a backdrop, is it any wonder that research from the FanFair Alliance found that 80% of respondents believe that secondary ticketing services are unfairly exploiting fans? Practices such as drip-feeding, surge pricing and strategic holdbacks create a precarious environment for consumers, and concerns have been raised about practices that manipulate supply and demand, driving up prices and creating artificial scarcity. Shockingly, between 30% and 50% of tickets may be withheld from public sale, leading to heightened frustration among genuine fans who simply want to attend events. As the cost of attending events increases, it is ultimately fans who are missing out. We cannot allow a situation where genuine fans are priced out of culture, art and entertainment because of these practices. We are already at a stage where too many fans opt out of trying to attend events, dispirited by the existing landscape, with little chance of seeing their team, group or artist at what would be the normal asking price. Again, at the heart of this is people—consumers—who are missing out. Due to enhanced costs, they cannot attend the gig or event they have dreamed of.

What do consumers have to navigate at the moment? As I have said, ticket harvesting, surge pricing and a concerning transparency deficit. Ticket harvesting—where individuals or groups use automated software and bots to acquire large quantities of tickets during primary sale—is preventing fans from accessing culture at an industrial scale. As mentioned earlier, O2 indicated that it prevented 50,000 suspected bots from accessing its Priority platform in just six weeks. Similarly, FanFair found platforms where people bragged about the extent of their exploits. Members of a Discord group were able to purchase up to 1,700 tickets to an upcoming tour next year, with the tickets then being sold at enhanced prices, and fans paying the price. Those alarming statistics highlight the scale of the problem.

We have all heard what this can lead to. Whether it is tickets to major concerts, Eurovision or other events, I am sure everyone has seen and heard the stories. The latest hot tickets go live, and within minutes they are listed on secondary platforms at significantly inflated prices. To give one example, after the swift sell-out of Eurovision tickets in 2023, tickets resold for upwards of £9,000—more than 20 times their initial price. That kind of price gouging creates an environment where only the wealthiest fans can afford to attend popular events, alienating loyal supporters and pricing them out of culture.

Turning now to transparency in the market, consumers deserve clear and accurate information regarding who is selling tickets, how many are available and the pricing structures involved. One of the most pressing issues is the information gap that exists on secondary ticketing platforms. When consumers purchase tickets, they often receive insufficient details regarding their authenticity, the identity of the seller and the potential risks involved. Enhanced transparency is crucial to enable fans to make informed decisions. At the moment, it is unclear what exactly the secondary ticket market is, with research showing that 62% of music fans purchasing from resale platforms do not realise they are buying from individual sellers, creating confusion for many. In the best-case scenarios, we hear of fans having to meet people in car parks for handovers of tickets; at worst, the tickets do not exist.

Greater transparency would play a pivotal role in educating consumers about the risks of ticketing, and especially the practice of speculative selling, where tickets are listed that do not exist or are not available. That practice can lead to dire consequences, with fans thinking they have secured tickets, only to find that they have been misled. Investigations have uncovered instances where tickets worth more than £1 million were speculatively advertised online. Despite consumers being assured that protections are in place, it appears that some sellers remain able to circumvent protections, with the consumer paying the price and experiencing the double whammy of missing out and losing out financially.

Fans, whether at sports events, gigs or other events, should be at the heart of events, yet current practices lead to disillusion among fans and a disconnect with those they support and the sector more widely. Inflated prices leave loyal fans priced out of attending live events they once enjoyed, with the prohibitive cost of attending eroding the connection between fans and artists. Trust among fans is another casualty; when fans feel they are being exploited, their trust in both the industry and the teams or artists involved is eroded. Anger at missing out can be directed at those acts or teams, with allegations that they are complicit in a system that excludes ordinary fans, when this is largely through no fault of their own.

We have seen many recent examples where fans have expressed upset at the initial difficulty of getting a ticket and then at the surge pricing and instant relisting on secondary platforms. When tickets are resold at an inflated price, that does not benefit the artist or the venue. Instead, the profits are siphoned off, removing crucial funding from cultural communities. We know that artists rely on ticket sales as a significant portion of their income, especially in an era when traditional revenue streams such as album sales have dwindled due to streaming services. The success of a tour can hinge on the ability to sell tickets at a fair price, and unfair practices undermine the economic viability of live performances. So this is about protecting not just consumers, but entertainment more widely and making it more accessible.

So what is currently in place to protect consumers and the sector? Well, there is regulation and enforcement from a number of organisations: the Competition and Markets Authority, the Advertising Standards Authority, trading standards and, in some cases, the police. The CMA published a comprehensive report in 2021 that outlined recommendations aimed at curbing detrimental practices in the ticketing market. Among them was a call for stronger measures against ticket resellers who exploit fans with excessive prices. The CMA’s investigation revealed that a significant portion of tickets listed were being sold at inflated prices on secondary platforms.

The previous Government were hesitant to implement all the CMA’s recommendations, which included further proposals. However, there have been recent changes in regulations in this area, with the Digital Markets, Competition and Consumers Act 2024, and we have taken a significant step forward. There has been an expansion of the CMA’s investigation and enforcement powers, allowing for direct action against non-compliant reselling platforms. Additionally, the Act will enable the CMA to enforce existing rules, addressing a long-standing concern over the lack of transparency and ensuring that consumers have access to clear and accurate information. The previous Government could have gone further, but held back from embracing some of the reforms, which could have further strengthened consumer protections. I am pleased that the new Labour Government have already confirmed that a new consultation will take place and that we will revisit the recommendations.

As a proud Labour and Co-operative Member of Parliament, I am delighted that the party has launched a new consumer campaign on this issue. The End the Ticket Price Rip-off campaign highlights the fact that, whether it is dynamic pricing way above face value or fans being frozen out of culture, the party movement has always had consumers at the heart of it, standing up for consumers and helping to deliver everything from the Consumer Protection Act 1987 to the Weights and Measures Act 1985. I really welcome the latest campaign, alongside a petition that has already been signed by thousands calling for strong powers to stop fans being taken advantage of and to protect them from being exploited by touts and resale sites.

I know that the Government are setting up the consultation as we speak and that it will involve not only DCMS but the Department for Business and Trade. I hope that it provides a real opportunity to look at all options to take action that can fundamentally transform the ticketing landscape for fans, artists and the integrity of the market and to enhance consumer protection, ensure fair access to tickets and mitigate the current issues faced.

Campaigners have raised concerns about whether the current regulatory framework is being enforced. Following high-profile cases, the CMA has opened investigations, but the problem is far more prevalent. Will the Minister comment on how we can better use current legislation to provide protections to consumers? The Co-operative party has been campaigning for much tougher enforcement action against platforms hosting ticket touts. Where websites continuously exploit fans, could the use of fines and the removal of websites entirely be considered to strengthen the protection of fans?

Much as the Co-operative party has long been a movement for the consumer, access to arts and culture is a Labour value. It is why our trade union movement adopted the bread and roses slogan from the American suffrage movement. Life should not be just about the basics—food, housing and wages—but about the roses too. For too many at the moment, culture is becoming inaccessible because of a trade that relies on the exploitation of enjoyment, buying up excessive numbers of tickets before real fans have a chance, and reselling them at extortionate prices. I am sure that the Minister agrees that culture enriches lives, that it should be open to people and that fans should not be priced out due to a secondary ticket market. Can he reassure me that that will be at the heart of what we do as part of the consultation?

To conclude, although this matter may not be at the top of the list of things impacting on people across the country, it is important in demonstrating our values. Culture should be available to all and not just the privileged few. Live entertainment should not be in the purview only of those who are able and willing to pay extortionate prices. People already save up for the cost price to access events; they should not be made to pay multiples of that. A system that allows ticket harvesting, surge pricing and tickets being resold at multiple times their original value excludes people from the enjoyment of a gig, sporting event or show. Those actions freeze people out of enjoyment and take away their chance of having the special, memorable moments that live entertainment can bring, whether that is music or sport.

As the great Newcastle United manager Bobby Robson once said of football and our beloved Newcastle United,

“What is a club in any case? Not the buildings or the directors or the people who are paid to represent it. It’s not the television contracts, get-out clauses, marketing departments or executive boxes. It’s the noise, the passion, the feeling of belonging, the pride in your city. It’s a small boy clambering up stadium steps for the very first time, gripping his father’s hand, gawping at that hallowed stretch of turf beneath and, without being able to do a thing about it, falling in love.”

Everyone deserves that opportunity to fall in love. I hope we can work to protect fans and end the ticket rip-off.

--- Later in debate ---

[Emma Foody]

I thank the Minister for his response, and I look forward to working with him to take forward this crucial issue. I thank all hon. Members across the Chamber for their contributions—the shadow Minister, the hon. Member for Hinckley and Bosworth (Dr Evans); my hon. Friend the Member for Washington and Gateshead South (Mrs Hodgson); and everyone else. The amount of concern and shared endeavour on this matter is hugely welcome.

Question put and agreed to.

Resolved,

That this House has considered the secondary ticketing market.