UK govt rejects CMA’s calls to tighten resale laws
The UK government has rejected the recommendations of the British competition regulator to tighten laws around online ticket touting.
In a 2021 report, the Competition and Markets Authority (CMA) proposed stronger rules to deal with illegal activity on non-price-capped secondary ticketing sites, including measures to clamp down on the bulk-buying of tickets as well as the practice of “speculative ticketing”, where sellers list tickets they don’t yet own.
Other suggestions included ensuring platforms are fully responsible for incorrect information about tickets that are listed for sale on their websites, and a new system of licensing for platforms that sell secondary tickets that would enable an authority to act quickly and issue sanctions.
However, in the government’s response, business secretary Kevin Hollinrake MP says he is “not convinced” by the need for additional legislative changes.
“I am not convinced that the additional costs that would fall on ticket buyers (as regulatory costs would be passed on) are justified by the degree of harm set out in your report,” says Hollinrake. “This is especially the case when we are already proposing to give the CMA additional administrative powers to protect consumers which the CMA could deploy in the secondary ticketing market.
“However, we propose to keep the position on maximum numbers of ticket resales under review as part of our ongoing monitoring of the legislative landscape in the ticketing market and in the light of technological, enforcement and other market developments.”
“It appears the uncapped market may still provide a service of value to some consumers”
He continues: “The government notes and agrees with the CMA recommendation that there should not be a ban on the uncapped secondary ticket market. Whilst both the way tickets are sold and used are changing and there is a growing authorised capped ticket resale market to help those who can no longer use their purchased ticket, it appears the uncapped market may still provide a service of value to some consumers.”
Hollinrake argues that is “too soon to conclude that the only way forward is further legislation focused on this market”.
“As you are aware, there are a number of improvements to other aspects of consumer law which we have now published in our response to the 2021 consultation,” he adds. “These will be our priority in the immediate future, rather than changes to the secondary ticketing regime specifically.”
“The government has effectively given bad actors a free pass to continue acquiring tickets in bulk to popular events and to engage in speculative and fraudulent selling”
Sharon Hodgson MP, chair of the APPG on ticket abuse, says the group is “struggling to understand” why the government has turned down the CMA’s recommendations.
“In August 2021, the CMA made it clear to the government that a handful of additional safeguards could help reduce the scale of unlawful online ticket touting, and better protect consumers,” says Hodgson. “Nineteen months on, and all their recommendations have been rejected. We are still struggling to understand why, and on what basis.
“Rather than improving the capacity of enforcement agencies to clamp down on malpractice, the government has effectively given bad actors a free pass to continue acquiring tickets in bulk to popular events and to engage in speculative and fraudulent selling. These individuals can make extraordinary profits at the expense of ordinary fans who are left ripped off and out of pocket.
“The UK is rightly proud of its live event industry, but an uncontrolled black market risks harming the consumer experience and wreaking untold damage on the sector overall.”
“The experiences of consumers appear to have been overlooked entirely”
Adam Webb, campaign manager of UK-based campaign against industrial-scale online ticket touting FanFair Alliance, shares similar sentiments.
“In August 2021, the Competition & Markets Authority published a series of common sense recommendations to the government that aimed to further protect consumers from being ripped off by unscrupulous ticket touts and parasitical ticket resale sites,” he says. “These included new measures to clamp down on the unlawful bulk-buying of tickets and large-scale speculative fraud, where rogue traders list tickets for sale that they do not possess. Research by FanFair Alliance has shown these problems remain rampant on certain secondary ticketing platforms.
“Nineteen months down the line, and, despite overwhelming evidence of continuing bad practice, the government has today comprehensively rejected the CMA’s advice – without, we believe, consulting with experts, campaigners or the live music industry.
“The experiences of consumers appear to have been overlooked entirely. Although much progress has been made in recent years to tame the UK’s black market for tickets, FanFair Alliance shares the views of the CMA that further action is still required to tackle these evident and ongoing problems with online secondary ticketing.”
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Superstruct UK forges deal with resale platform Tixel
Superstruct UK festivals has enlisted Tixel as the exclusive resale platform for a number of its domestic events including Bluedot, Boardmasters, Christmas at Bute Park, Kendal Calling, NASS, Tramlines Festival, Truck Festival and Y Not Festival.
The partnership includes direct technology integrations that will facilitate functions like real-time, accurate ticket validation on all tickets listed (eliminating fakes and/or speculative listings) and the ability for a buyer to list and sell a ticket before ticket barcodes have been distributed.
“We are delighted to announce our partnership with Tixel, which demonstrates the strength and scale of our UK portfolio of festivals and their commitment to enhancing the customer experience,” says Chris McCormick, UK festival’s band partnerships director.
“[This deal] demonstrates the strength and scale of our UK portfolio of festivals and their commitment to enhancing the customer experience”
“Today’s ticket buyer is different to who they were three years ago,” says Tixel CEO Zac Leigh. “We’re much more used to digital and in-app purchasing and around 80% of us say that we’re more likely to buy a ticket if we know that we can easily resell it later. We love that our festival partners are embracing the new behaviours of today’s festival-goers in an effort to super-serve their attendees, and we’re excited to help them do that.”
Founded in Australia in 2018, Tixel’s partners include leading festivals and promoters such as Beyond the Valley, Strawberry Fields, and Corner Hotel, artists such as Tame Impala, and primary ticketing platforms Eventbrite, Eventix, and Oztix. The company officially launched UK operations in late 2021.
Superstruct Entertainment has amassed over 85 festivals in Europe and Australia, making it the second-largest festival promoter in the world after Live Nation. Outside of the UK, the Providence Equity Partners-backed company owns festivals such as Elrow (ES), Sziget (HU), Wacken Open Air (DE), Mysteryland (NL), Hideout (HR), Sonar (ES) and Flow (FI).
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NL to tackle ‘billon-dollar’ resale industry
The Dutch government says it will devise a strategy this autumn to tackle the resale of tickets for extortionate prices.
The state secretary for culture and media Gunay Uslu called resale a “persistent problem” and wants to better protect consumers.
It comes after reports that Lowlands tickets were being resold for more than €100 over the original price, prompting politicians to wade in.
The 60,000 tickets for the Mojo-promoted festival cost €300 euros each and sold out within 15 minutes.
Ticketholders are only allowed to resell tickets through Ticketmaster, with a maximum of 20% on top of the purchased price.
She said she expects to come up with a plan in the autumn after researching how other countries deal with this problem
However, Ticketmaster in the Netherlands reportedly charges over €40 euros in service costs per transaction, hiking the price of a Lowlands ticket up to over €400.
The Socialist Party of the Netherlands has been calling on the government to crack down on the ‘billion-dollar’ resale industry for years, to no avail.
However, the party submitted a motion last year that was widely supported in the House of Representatives, subsequently drawing the attention of Uslu.
She said she expects to come up with a plan in the autumn after researching how other countries deal with this problem.
Ticketing fees have been thrust under the microscope of late after The Cure persuaded Ticketmaster to offer partial refunds for “unduly high” ticketing fees charged in the Verified Fan sale for the band’s upcoming North American tour.
Various markets are already making moves to eliminate “excessive” ticketing fees for concerts and other events, with the US recently introducing a “Junk Fee Prevention Act”.
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Prodiss backs ‘landmark’ Google resale verdict
Prodiss has hailed a “landmark decision” after Google failed in its appeal against a ruling banning the purchase of adverts promoting tickets sold by unauthorised secondary ticketing platforms in France.
The French live music association brought the lawsuit against Google France and Google Ireland after noticing advertisements for tickets to shows by Rammstein, Drake and Metallica on sites including Viagogo.fr, StubHub.fr and Rocket-Ticket.com at, or near, the top of Google’s search results.
In France, it is illegal to sell tickets without authorisation from the event organiser.
The Judicial Court of Paris found Google liable for reputational damage to live entertainment professionals back in 2020, noting that by accepting advertising from ticket resale sites, it may have given fans the false impression that rightsholders benefit from inflated secondary market prices.
The court prohibited Google Ireland, which operates Google Ads (formerly AdWords), from allowing the purchase of advertising keywords relating to the sale of tickets for shows in France, unless the purchaser can prove that they have written authorisation from the rightsholder.
“This is another step in the right direction to ensure a fair, safe, and legal process for ticket sales in France”
That judgement, which applies to all live shows taking place in France, has now been upheld, with the company also fined €300,000 in damages.
“This is a landmark decision for us,” says Prodiss CEO Malika Séguineau. “We are very pleased that the court of appeal has ruled in favour of protecting the rights of the producers and the rights of the audience. After several previous decisions against illegal platforms over the last years, this is another step in the right direction to ensure a fair, safe, and legal process for ticket sales in France.”
Sam Shemtob, director of the Face-value European Alliance for Ticketing (FEAT), adds: “This is a big win for those of us who want to see tickets in the hands of fans and not sold on by price-gouging touts. Rightfully, a lot of fans’ anger gets focussed on the resale platforms themselves, but Google is a major player in steering people away from face value tickets sold by the primary seller, even when there are still tickets available. The clearer Google’s role becomes for all to see, the better.”
Google began accepting advertising from Viagogo once more in November 2019, having previously banned the site from its AdWords platform.
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Live orgs unite for Make Tickets Fair! campaign
A coalition of live industry organisations and professionals from across Europe is launching the Make Tickets Fair! campaign to help music fans avoid being ripped off on the secondary ticketing market.
The group comprises agents including UTA’s Jules de Lattre and One Fiinix Live’s Jon Ollier, as well as organisations including German live entertainment association BDKV, the European Music Managers Alliance, European Arenas Association, FanFair Alliance, Swiss consumer association FRC, Pearle – Live Performance Europe, PRODISS, the Sports Rights Owners Coalition and Victim of Viagogo.
Further details of the initiative will be revealed tomorrow at Eurosonic, at a panel hosted by pressure group FEAT and Dutch venues association VNPF. Speakers include De Lattre, Henk Schuit (Eventim Nederland), Sam Shemtob (FEAT) and Silke Lalvani (Pearle – Live Performance Europe).
“It’s vital that this campaign is successful, and that means becoming front-of-mind with agents, managers and promoters when they are planning shows – so safe resale information goes out with all communications, including on ticket pages,” says De Lattre.
“The current ticket resale market is, frankly, broken and the time for the industry to come together and act is long overdue”
“We are delighted to be part of the campaign Make Tickets Fair! to bring awareness to all audiences about how and where to safely buy their event tickets,” says Silke Lalvani, head of public affairs at Pearle. “It is crucial that the live performance sector as a whole collaborates on stopping illegal ticket resale to make sure that fans have a great experience at live shows and other events.”
A new industry-facing website has launched, providing free resources and advice for event organisers, with the goal of getting more agents, promoters, venues and indeed artists, involved ahead of consumer launch. It also offers a clear overview of ticket resale laws country by country.
“The current ticket resale market is, frankly, broken and the time for the industry to come together and act is long overdue,” adds Neo Sala, FEAT director and founder & CEO of Spain’s Doctor Music. “As the first Europe-wide campaign of its kind, Make Tickets Fair! has huge potential to help fans and rebuild trust in live music. To achieve this, cross-industry collaboration is essential, and we look forward to getting as many members of the live business on board as possible.”
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FEAT sets out objectives and welcomes new members
The Face-value European Alliance for Ticketing (FEAT) has pledged to continue campaigning for a Europe-wide ban on ticket resale above face-value.
At its first in-person general meeting since the pandemic, FEAT also unveiled plans for an international consumer awareness initiative geared at educating fans on the risks of buying tickets from uncapped secondary ticketing sites. The messaging and strategy is currently in development, with FEAT facilitating a working group made up of organisations across Europe, including BDKV, the European Music Managers Alliance, the European Arenas Association, FanFair Alliance, FRC, Pearle – Live Performance Europe.
In addition, the organisation welcomed new members Chris Ortiz, director of Cordova-based Riff Producciones, and Iñigo Argomaniz, CEO of Get In, based in San Sebastián.
“There’s a renewed energy to tackle touting, and we have been invigorated by positive changes in national and EU legislation over the last year”
“It’s great to finally meet again in person and welcome more new faces among us,” says FEAT director Neo Sala, founder and CEO of Doctor Music, who hosted the meeting. “There’s a renewed energy to tackle touting, and we have been invigorated by positive changes in national and EU legislation over the last year – demonstrated not least in MCT-Agentur and Rammstein’s recent injunction against Viagogo in Germany.”
Held in Barcelona, the meeting saw the board refocus its priorities after the past year’s successful campaign for tougher regulation of online marketplaces in the EU’s Digital Services Act (DSA). The landmark DSA includes measures to ensure professional sellers are identifiable, prevent certain manipulative sales tactics, and require regular reporting to improve transparency for consumers.
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Most fest tickets on Viagogo sold by three traders
Just three people are responsible for over two thirds of UK festival and outdoor event tickets listed by resale platform Viagogo, according to a new report.
An investigation by ITV News, based on research carried out by anti-touting campaign group FanFair Alliance, found that fewer than 10% of tickets on the secondary ticketing site were being sold by ordinary consumers.
Analysis of more than 11,000 tickets from 174 events over a three-month period revealed that over two-thirds were being sold by just three “traders” for a combined total of £1.7 million – almost £1m above face value.
The report found evidence of so-called “speculative” tickets – which sellers do not yet possess – being illegally offered for sale.
The investigation contacted 10 festivals being listed by the three traders, with two saying the sellers had bought nowhere near the number of tickets being advertised, and the rest saying they had no record of them buying any tickets at all. One of the traders’ listings have since been removed from Viagogo’s website.
“We treat concerns about tickets with the utmost priority”
“We treat concerns about tickets with the utmost priority,” says a spokesperson for Viagogo. “In this instance, we acted swiftly to remove the relevant listings and have returned several to the site that have clearly demonstrated that they are legitimate and valid.
“We continue to review the remaining listings and these remain off site.”
The decision followed an investigation by Italy’s financial crime enforcement agency the Guardia di Finanza, which found the platform had listed tickets for 131 events at prices up to six or seven times above their face-value. Viagogo responded that since it had already been held a ‘passive’ intermediary platform by the Council of State in a previous final judgment, it was confident the fines would be annulled on appeal.
Earlier, in May, Australia’s full federal court dismissed Viagogo’s appeal against a ruling that it had made misleading claims on its website relating to the reselling of concert and sports tickets.
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Twickets reveals next steps after record quarter
Twickets founder Richard Davies has revealed to IQ that the company’s revenues from international territories have doubled from pre-pandemic levels.
The face value or less fan-to-fan resale site is coming off its best-ever quarter in the midst of a huge summer for live music in the UK. In excess of 300,000 tickets were listed on the platform from May to July, with gross revenue up 140% compared to the same three months in 2019, with single tickets making up 40% of sales.
According to the firm, 74% of ticket sales now come in the first 48 hours post-listing, while two-thirds of tickets sold are within a week of the event itself.
“Post-pandemic there’s been a very positive impact on resale activity, as reflected in our recent results,” Davies tells IQ. “With so many more events scheduled –and rescheduled – coupled with fans changing their own plans, we’ve seen a real surge in trading.
“With the majority of tickets listed on secondary platforms coming from ‘brokers’, fans have come down on the side of our ethical approach to resale.”
The company says that 1.5 million unique users visited the Twickets platform during the three-month period, while a record 18,500 alerts were set up for the Taylor Hawkins Tribute Concert, which takes place at Wembley Stadium on 3 September. Twickets is the benefit show’s official resale partner and will be donating its fee from the event.
“Growth has been particularly strong in mainland Europe”
Established in 2011, the London-headquartered company works with more than 300 live entertainment partners in the UK including venues, artists, promoters, festivals and ticketing companies, and confirmed a link-up with the UK’s Music Venue Trust earlier this year, with a number of significant new partnerships to be announced soon.
Backed by several high-profile managers, agents and promoters, Twickets also has local operations in the US, Spain and Australia, with further overseas expansion plans on the horizon.
“Revenue from international territories has doubled since pre-pandemic levels, and growth has been particularly strong in mainland Europe,” says Davies. “As a result, we’re now focused on building a local Twickets team in key territories there, notably Germany and France.”
The firm, which has previously partnered on tours by artists such as Adele and Ed Sheeran, used the downtime inadvertently provided by Covid-19 to enhance its services.
“We invested a lot of time re-engineering our apps during lockdown, and have subsequently witnessed a large increase in adoption rate,” says Davies. “Over 70% of users now access Twickets through mobile.
“Furthermore, the introduction of an ‘events happening near you’ feature in the app has increased last minute purchases by those seeking inspiration for a local night out.”
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Resale marketplace Tixel targets further expansion
Australian ticket resale marketplace Tixel is targeting further international growth following a successful funding round and European launch.
Founded in 2018, the company’s partners include festivals such as Australia’s Beyond the Valley, the UK’s Boardmasters, End of the Road, 2000 Trees, Strawberry Fields, Dekmantel in the Netherlands and Sonus in Croatia, along with artists such as Tame Impala, and primary ticketing platforms Eventbrite, Eventix and Oztix.
“We are a global platform” Tixel CEO and co-founder Zac Leigh tells IQ. “Australia and New Zealand is where we started and that really set the foundations. Now we’re in the UK and Europe, and we also work with event organisers in the US. Anywhere there’s an event, we can help.”
A self-styled “honest resale marketplace”, Tixel verifies tickets in real-time to detect and reject fake tickets before they’re listed and create a fresh barcode for the new buyer. Prices are capped at 10% above face value, and Leigh stresses that the firm has a track record of reducing refund requests and no-shows.
“We believe that buying and selling tickets should always be safe, easy and honest,” he says. “We’re set up to make sure that fans have an amazing and safe experience from when they buy a ticket to when they walk in the gate.”
“Part of our technology is focused on the people putting on the show”
Product features include a customised backend for event organisers that provides actionable pricing and audience data, and proprietary dynamic waitlist technology that creates a real-time repository of interested buyers.
“Unfortunately, we still see a lot of people rock up to the gates with fake tickets. That’s a lost night and is pretty heart wrenching, so we’re trying to solve that problem,” notes Leigh. “But what makes us unique is that we have an organiser-centric mentality. Part of our technology is focused on the people putting on the show. We work directly with ticketing companies and event organisers to support them throughout the whole campaign and make sure they have an amazing experience as well.”
Tixel landed in the UK in late 2021, having raised A$1.5 million (€1m) last year in a funding round that included a number of leading concert businesses and music investors. Promoters Unified Music Group and I Oh You, labels Rose Avenue and Future Classic and investment firms Alberts and Galileo Ventures were among to participate.
“One of the big things for us was getting people on board who actually understand the problems faced and appreciate it from an industry perspective,” says Leigh. “Some of our investors are event organisers and can see the value that our platform can provide. That’s exciting in the sense that what we’re doing is obviously resonating – they obviously see the importance of having a strong resale marketplace and the value that we can provide.
“The market is pretty dynamic and we’re pumped at what the future has to hold. Global expansion is a big focus for us – the US is definitely on the radar – but positioning ourselves as being uniquely placed to be able to solve a lot of the problems in the post-Covid era is important. Things are changing and we see a lot of opportunity there.”
“Ticketing has been stuck in the past”
Tixel was recognised at last week’s Ticketing Business Awards at Emirates Old Trafford, Manchester, where it was presented with the Product Innovation Award for “a product or service that has uniquely transformed and improved the way ticketing entities do business”.
“Technology is slowly catching up,” adds Leigh. “Historically, ticketing has been stuck in the past and Covid acted as a catalyst in kickstarting this new wave of innovation, and I think that that’s going to continue.
“There are a whole lot of new promoters putting on events in new, creative ways and we’re happy to be a part of it, but I think there are going to be a lot of new problems that come up and a lot of new solutions moving forward: whether that be pricing, whether that be digital ticket capability, or whether that be understanding more about the audience, there are always opportunities to innovate and I think that we’re going to see a lot of the gaps filled.”
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Campaigners back landmark ticket resale ruling
Campaigners against ticket touting have backed the European Parliament’s decision to approve new laws strengthening regulation around online marketplaces, including ticket resale sites.
The landmark Digital Services Act (DSA), which was passed by 539 votes to 54, includes measures to ensure professional sellers are identifiable, prevent certain manipulative sales tactics, and require regular reporting to improve transparency for consumers.
Crucially, online marketplaces will now be required to obtain essential information about third party professional sellers before traders are allowed to list tickets on the platform.
Resale platforms must also make it clear throughout the buying process that the tickets listed are provided by a third party, while dark patterns – user interfaces designed in such a way as to trick users into making certain decisions, such as “pop-ups” or giving prominence to specific choices – will be banned.
“The introduction of the Digital Services Act is a key moment for the live events sector in the UK, as well as across Europe”
The development follows two years of lobbying by the Face-value European Alliance for Ticketing (FEAT), which culminated in arranging an open letter signed by more than 130 representatives from across Europe’s live sector, calling for the EU to introduce tougher laws to combat online ticket touting. However, FEAT argues the text could have gone further and will continue to campaign for tougher rules.
“The introduction of the Digital Services Act is a key moment for the live events sector in the UK, as well as across Europe,” says FEAT director Sam Shemtob. “The new legislation regulating online marketplaces will see EU countries catch up with the UK in terms of stricter rules for verifying professional sellers and making sure fans know who they’re buying from. This will directly impact all UK artists who tour Europe, as well as make it harder for UK touts to operate under the guise of anonymity on European ticket resale sites.”
“This is an important step towards increasing accountability and to prevent scams, which will contribute towards a healthier European touring industry”
The DSA will now go through the formal adoption procedures by the European Council before it is published in the EU Official Journal. It will enter into force 20 days after its publication in the Official Journal of the European Union, and its provisions will mainly apply 15 months after entry into force or from 1 January 2024, whichever comes later.
Per Kviman, CEO of Versity Music and chair of the European Music Managers Alliance (EMMA), which represents 1,800 music managers in 10 European countries, adds: “EMMA is very pleased to see new rules which protect both artists and the ticket-buying public have been approved by the European Parliament. This is an important step towards increasing accountability and to prevent scams, which will contribute towards a healthier European touring industry.”
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