Ticket Touting: Musical Events

Sharon Hodgson Excerpts

Wednesday 2nd May 2018 Westminster Hall

[Pete Wishart]

I am grateful to my hon. Friend for that intervention, and she is absolutely and utterly right. Last week, I listened to the presentation by the Competition and Markets Authority at the meeting of the all-party parliamentary group on ticket abuse, which was hosted by the hon. Member for Washington and Sunderland West (Mrs Hodgson). These measures have been far too slow in coming; the Government need to get a move on with them. I will come back to that point later, because what the Government are doing is important, but there is lethargy at the heart of their response.

I was trying to describe how all this works. We have Live Nation putting on the shows and Ticketmaster selling the tickets at the venues, which are all hoovered up by the touts. The tickets then go on sale on the secondary sites owned by Ticketmaster. Google is then incentivised to promote those secondary sites by placing them at the top of their searches. So what happens in this perfect model is that the touts get their hit on the secondary sites and Google gets a share, but critically Ticketmaster and Live Nation secure their secondary cut from their secondary sites.

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)]

I am grateful to the hon. Gentleman for securing this important debate. We have had numerous debates on this issue over the years, but this one is extremely timely, with the “bot law” coming in just last week, and following the meeting that we had with the CMA. He mentioned Google. Does he agree that most people are driven to these sites by Google? If he does, does he also agree that Google has a role to play—by not giving these sites top billing and by ensuring that consumers realise that these markets are secondary markets and not primary ones?

[Pete Wishart]

Absolutely, and what Google actually does is breach its own certification rules, which suggest that it must ensure that such sites are designated as secondary sites. Google has a big role to play in this, and the hon. Lady is absolutely right to mention it.

This business model is almost elegant in its exploitative design. Last year, Live Nation made over £1 billion just from its secondary sites. There is also good anecdotal evidence, which I will try to relay under parliamentary privilege, suggesting that the players at the very top of the music business tree—at management level and at promoter level—have a working relationship with some of the biggest touts in the world, to ensure that the wheels and the cogs of this huge, exploitative machine are properly oiled and working at maximum efficiency.

Everywhere throughout this broken infrastructure, relationships and models of exploitation such as those I have mentioned are the norm. StubHub is another one of the “big four” secondary sites. It is owned by eBay, which purchased it in 2007. StubHub now has a global partnership with AEG, which just so happens to operate the O2 and Wembley Arena. That means that, by default, the parasite-infested StubHub is the official resale partner of the O2 and Wembley Arena, which are two of the most prestigious venues in the United Kingdom.

However, the daddy of them all is the truly appalling and exploitative Viagogo. I do not know what arrangement Viagogo has with Google, but if you were to look online for your Stormzy ticket, Sir Christopher, you would be directed to Viagogo to try and purchase it.

Our ticketing infrastructure, therefore, is a broken monolith of misery, where tech giants are in cahoots with touts, who are in cahoots with the promoters and managers. But I will spend just a couple of minutes on Viagogo. How a company that exists exclusively to exploit people and to rip them off is allowed to continue operating is simply beyond me. If anybody is watching this debate at home, I say to them, “Do not buy tickets from Viagogo! Go nowhere near them! You will be ripped off totally! Do not touch them!”

At the all-party group meeting last week, I listened to some of the unfortunate victims of Viagogo. Viagogo is so exploitative that a self-help group has emerged among its customers—that group has thousands and thousands of members, who are ordinary, honest people just trying to secure a ticket for a friend or a grandchild, or as a rare treat for themselves. They had no reason to believe that the simple fact of trying to buy a ticket would expose them to such shark-infested waters and such danger. Why would they? Here was “nice Mr Google” directing them to these sites, so that they could find tickets. But that is where the horror starts, as the victims of Viagogo are exposed to all sorts of hard sells, tricks and exploitative practices.

[Mrs Hodgson]

Will the hon. Gentleman give way?

[Pete Wishart]

I will give way one last time to the hon. Lady.

[Mrs Hodgson]

I am intervening because I want the hon. Gentleman to join me in congratulating Claire Turnham for her amazing work. She set up Victims of Viagogo, originally because she was a victim herself and wanted to try to get her money back. After that long fight, however, she put out the information she had gathered, in order to help others. She has now helped thousands of people to receive hundreds of thousands of pounds in refunds. So will he join me in welcoming Claire’s work?

[Pete Wishart]

I have no hesitation in doing so, and I also commend the hon. Lady herself for her diligent work over the years in chairing the all-party parliamentary group on ticket abuse. In fact, it is in my speech to congratulate Claire Turnham, whom I met last week and who has done a fantastic job. She has managed to reclaim thousands and thousands of pounds for the Victims of Viagogo, but why should she have to do that? It is not the job of individuals—drummers, guitarists and singers—to protect the public; it is the Minister’s job. That is your job, Minister. It should be you who is protecting people—not individuals such as Claire Turnham, who are having to do that difficult job.

I heard about the emotional impact of being ripped off and realised how stressful and difficult it is for people to try to reclaim the money they have been swindled out of. I heard that health, relationships and work have all seriously suffered. As a musician, I heard about people being put off attending gigs for the rest of their lives because of the experience they have suffered from these parasites and companies that exist solely to rip people off.

--- Later in debate ---

[Margot James]

I think the hon. Lady is slightly mistaken. I believe it is only professional football that has that protection, for historical reasons. The rest of sport is dealt with in the same way as the music industry.

I welcomed the CMA’s announcement last week, as part of its ongoing enforcement investigation, that it had secured commitments from three of the largest secondary ticketing platforms to provide additional information. It will come as no surprise to hon. Members that the one secondary site that has not yet co-operated is Viagogo, which is controlled from abroad. I believe it is based in Switzerland, which presents an extra challenge. I echo the remarks made by the hon. Member for Perth and North Perthshire, advising customers not to use Viagogo’s services until it comes within the law. The CMA is concerned that all ticketing sites, secondary and primary, accept their responsibilities to consumers.

The Government are also giving approximately £15 million to National Trading Standards for national and cross-boundary enforcement. I welcomed the NTS’s announcement at the end of last year that its officers had conducted raids on a number of properties across the UK, resulting in four people being arrested under suspicion of breaches of the Consumer Protection from Unfair Trading Regulations 2008. I congratulate National Trading Standards and local trading standards officers on their excellent work.

In addition, the Advertising Standards Authority has recently taken action against the main four secondary ticketing websites, banning the misleading presentation of pricing information on those websites. Companies will have to show prices in a clear, transparent and upfront manner before consumers make their purchasing decision. Hopefully, that will put an end to the drip-pricing practice that has been commonplace.

Clearly, enforcement bodies are taking the matter seriously. We are prepared to go after those who flout the law or abuse the ticketing market. The ticketing industry and online platforms need to take action, and we are attacking the situation on a number of fronts.

Google recently introduced new rules for ticket resellers advertising through its AdWords platform, requiring them to be certified. To apply for certification, they will need to comply with a number of rules to improve transparency, and stop implying that they are a

“primary or original provider of event tickets”.

We are getting at them through Google as well, and industry is becoming increasingly adept at using technology to improve the ticketing experience, exerting greater control over the transfer of tickets through the use, for example, of blockchain and “ticketless” tickets attached to fans’ mobile phones.

[Mrs Hodgson]

I welcome what the Minister has said. She has outlined the plethora of instruments and laws that we now have. As someone who has worked on this for 10 years, I feel that it is all starting to come together. I know she takes this issue seriously, but will she commit to keeping a very close personal eye on it? As those of us who have fought Viagogo and the secondary market for years know, they are slippery characters. I doubt they will ever comply, so we will be back here revisiting this issue.

[Margot James]

I thank the hon. Lady and congratulate her on her work over the years, and on her chairmanship of the all-party parliamentary group. I will stay across this issue. I have exactly the same suspicion: that the company that we have already mentioned in no uncertain terms will drag its feet and fight all the way. We will have to be across that, and I welcome the hon. Lady’s continued involvement in helping us. I also welcome the work that the Society of Ticket Agents and Retailers and sports bodies have undertaken with the CMA to look at ways to ensure that terms and conditions are considered to be fair, particularly in instances where tickets were put on sale many months before the performance.

I recognise that there is no magic bullet to solving the worst excesses of the secondary ticketing market; it requires concerted and consistent effort. I have laid out our efforts as they stand. I thank the hon. Lady for her comments about how we are now pulling together a number of strands to deal with the issue. We are making good progress, but I have no doubt that there is more to do. We must ensure that the UK is a vibrant place for fans to experience great music.

Question put and agreed to.