Lord C-J argues for ticket abuse legislation
In the recent 2nd Reading Debate on the the Consumer Rights Bill I argued strongly for new legislation to prevent ripping off of consumer by secondary ticketing sites as suggested recently by the All Party Ticket Abuse Group.
see here
http://www.publications.parliament.uk/pa/ld201415/ldhansrd/text/140701-0001.htm#14070156000078
"There is then the whole question of ticketing abuse. Increasingly—as Channel 4’s “Dispatches” investigation and the BBC’s “Watchdog” have shown—professional secondary ticketing touts buy tickets solely with the intention of denying them to real fans, to whom they then resell their tickets at inflated prices.
With internet ticket selling becoming more streamlined, touts are able to use sophisticated computer systems to buy large volumes of tickets automatically, seconds after they go on sale. That often means that it is practically impossible for genuine fans to access the event. An artificial shortage of tickets and an inflated secondary market are created. Content providers gain no share whatever of the inflated prices charged.
As the All-Party Group on Ticket Abuse—of which I am a member—noted, that market does not adhere to the same principles of transparency and consumer protection as other markets. Members of the group believe, as I do, that the large-scale, unauthorised resale of event tickets is against the interests of both consumers and content creators. We believe that the solution is greater transparency in the secondary market and a greater ability for event holders to control who can resell their tickets. The Metropolitan Police report drawn up by Operation Podium after the Olympic Games stressed the need for an open and transparent system for ticket reselling, with clear and appropriate regulations. Secondary websites should be required to publish full details of the ticket being offered, including the original face value, seat number and location. They should identify the seller, state whether or not the seller has the permission of the originator to resell the ticket, and declare where the tickets are being listed by the event organisers."
Government Agrees with Peers to Put Fans First
Earlier this year the Coalition Government agreed a compromise on the Consumer Rights Bill with proponents of transparency measures to prevent ticket fraud and by secondary ticket sellers.
As a signatory to the original amendment and a member of the All-Party Group on Ticket Abuse I paid tribute to Lord Moynihan, Sharon Hodgson MP, Mike Weatherley MP and Lady Heyhoe Flint for their roles in the campaign and their for their efforts in securing this agreement, which will benefit music and sports fans immensely.
Here is what I said:
http://www.publications.parliament.uk/pa/ld201415/ldhansrd/text/150224-0001.htm#15022465000505
We are now waiting for the new Conservative Government to set up the review of the law governing Secondary Ticketing as promised in the last Parliament and enshrined in the Consumer Rights Bill. I asked a question in the Lords about this recently and this is the reply I received
To ask Her Majesty’s Government when they intend to commence the review of the consumer protection measures for the secondary ticketing market under section 94 of the Consumer Rights Act 2015; and who will undertake it.
The Parliamentary Under-Secretary of State, Departments for Business, Innovation and Skills and for Culture, Media and Sport (Baroness Neville-Rolfe) (Con): My Lords, work on appointing the chair and expert group is well advanced and the review will proceed once this and the terms of reference are finalised. We are aware of our statutory obligation to publish a report on its findings by 26 May 2016.
Lord Clement-Jones (LD): My Lords, I thank the Minister for that reply but ticket fraud continues to soar this summer. Circle Tickets has defrauded hundreds of music fans just this June while the RFU reports zero compliance with the Act for World Cup tickets, so the problem remains acute. This review is enshrined in statute as a result of the efforts of the noble Lord, Lord Moynihan, and others only recently. We are now two months out from the general election. When will this review start, will BIS or the DCMS oversee it and what will its scope be?
Baroness Neville-Rolfe: My Lords, as I have said, we will publish details of the review shortly. I share the noble Lord’s disappointment on the enforcement side and, prompted by his Question, I spoke to the City of London Police only last week. I was reassured about some of the actions it is taking, both on its own and with the cultural and sporting bodies, for the important events of this summer. As the noble Lord
Here is the original piece I wrote after the vote in the Lords in November
The House of Lords has handed a big boost to music, sport and comedy fans as a cross-party coalition of Peers yesterday passed an amendment to curb the actions of ticket touts.
In a defeat for the Government, Peers forced through a new clause to the Consumer Rights Bill to increase transparency in the ticket resale market.
The new provisions, passed by 183 votes to 171, will mean that touts selling their tickets through major internet platforms like Seatwave and Viagogo will have to prominently disclose key facts to potential customers, including:
- Their identity, particularly where they are selling tickets as a business;
- The original face value of the tickets being sold;
- The individual characteristics of the tickets being sold, such as the seat number or the booking reference, and;
- Whether the terms and conditions on the ticket mean that it can be cancelled if the organisers find out it has been resold.
It is hoped that the information being made public will enable event holders to identify the largest ticket touts and prevent them from buying up large quantities of tickets to re-sell, leaving ordinary fans with no choice but to pay inflated amounts on the secondary market.
The latest high-profile tour to be affected is that of Fleetwood Mac, with thousands of tickets being resold on the secondary market at way above face value within minutes of the tour selling out. Similarly, next year’s Rugby World Cup has been plagued by touts reselling tickets to England games.
The amendment follows a similar attempt in the Commons earlier in the year. Both amendments were informed by a report from the All-Party Parliamentary Group on Ticket Abuse, which held an inquiry at the beginning of the year into the secondary ticketing market.
Liberal Democrat Peer and signatory to the New Clause, Lord Tim Clement-Jones, said: “This is a victory both for the ticket-buying public and for the hugely important live event industry. The Police and the entertainment industry have been clear that action needs to be taken on ticket touts to ensure that genuine fans can get access to gigs, shows and games without having to pay extortionate prices, and these new measures would do exactly that.”
Labour Co-Chair of the All-Party Parliamentary Group on Ticket Abuse, Sharon Hodgson MP, said: “Ticket touts have operated with impunity for far too long. In no other market would we put up with not knowing who we were buying from or whether they even had permission to sell us a product. This amendment is a significant step towards tackling the scourge of touts and putting fans first, and I hope that the Government now listens to the will of Parliament.”
Conservative Co-Chair of the All-Party Parliamentary Group on Ticket Abuse, Mike Weatherley MP, said: “It’s been clear for a long time that this market is not working in the interest of genuine fans or the people who put in all the hard work and investment to put on live events. Anyone operating honestly has nothing to fear from these changes, but they will make a big difference for ordinary fans. It’s imperative that the Government doesn’t try to reverse this amendment when the Bill comes back to the Commons.”
See the Report in the Evening Standard