By John Q. Hosedrinker 
The government is set to announce a ban on reselling tickets for more than their original purchase price, effectively ending the practice of ticket touting, which will be enforced by the Competition and Markets Authority. This decision, expected to be included in next year’s King’s speech, follows pressure from artists and concerns over exorbitant markups. While resale platforms will still be able to charge fees, the amount will be capped to prevent artificial inflation. The ban will also apply to social media sites, and resale companies will be legally liable for sellers who do not comply with the new regulations.
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Reselling tickets for profit to be outlawed in UK government crackdown is definitely a hot topic, and it’s easy to see why. The frustration surrounding the current system, particularly with the practices of platforms and the dreaded “dynamic pricing,” is palpable. Many people have tales of woe involving long online queues, only to find tickets immediately resold at inflated prices. The fundamental problem is this: people are buying tickets with the sole intention of flipping them for a profit, effectively exploiting genuine fans.
So, the UK government’s move to outlaw reselling tickets for profit is a welcome step for many. The basic premise is straightforward: anyone selling a ticket will not be allowed to charge more than they originally paid. However, the details are where things get interesting, and potentially tricky. Resale platforms will still be allowed to charge fees on top of the face value, which is a crucial aspect of this crackdown. The government plans to put a ceiling on those fees to prevent them from being artificially inflated to offset the loss of profit from reselling. The exact limit on these fees hasn’t been decided yet, so there’s still a question mark over how effective this will actually be in practice.
However, the question of enforcement raises some serious concerns. Historically, it’s been difficult to prevent ticket resales above face value. As many have pointed out, there’s a strong likelihood that people will find ways around the law. Tickets could be sold on sites hosted abroad, or even transferred privately, making it difficult to monitor. The idea of restricting ticket transfers is also a contentious one. If ticket transfers are still allowed, the platforms will find a way to enable trades, no matter the laws. As long as a ticket can be sent to an email, there will be a way to facilitate these transactions.
It’s also worth thinking about how this might impact the market. One concern is that it might make it harder for people to sell tickets they can no longer use, which can leave them with a completely unusable asset. If you can’t resell your ticket and can’t go to the show, it is a loss of money. On the other hand, limiting the ability to profit from ticket resales should, in theory, help to make tickets more accessible to genuine fans. This might also have the positive effect of reducing the use of bots that are often used to buy up large quantities of tickets, pushing prices up artificially.
The impact on different players within the industry is also something to consider. Resale platforms are likely going to adapt their business models to comply with the new rules. Some people think that official resellers like Viagogo could become even more prevalent and powerful, particularly if the fees are too high. Others might find loopholes, potentially bundling the ticket with other items or services to get around the limits.
The question of “fees” is central to this debate, too. The final price must include all taxes, fees, and administrative charges. The ticket is sold to a customer at a price that includes everything, from the start. They are planning to cap the fees added as well. The devil, as always, will be in the details.
Of course, the UK isn’t alone in facing this issue. Many people are eager to see similar measures adopted in other countries, particularly the US. The frustration with ticket scalping is universal, and the desire for fairer practices is widespread.
Overall, the UK government’s crackdown on ticket reselling for profit is a complex issue. The legislation’s effectiveness will depend on how rigorously it’s enforced and whether it truly addresses the root causes of the problem. While it’s a step in the right direction, it’s probably not going to be a perfect solution, and some of the more serious issues, such as dynamic pricing, may still remain. Still, making the practice of reselling tickets for profit illegal is a win.