Contribution
My Lords, we appreciate the Statement from His Majesty’s Government. As the Minister in the other place said, the Department for Business and Trade and the Department for Culture, Media and Sport have launched a consultation on the resale of live event tickets. That consultation will consider a cap on the price of ticket resales, increasing the regulation of ticket resale websites and apps, and strengthening consumer protections.
All noble Lords will be aware that the resale market plays an important role in supporting artists, fans and venues. Authorised resellers can provide a safe and secure way to transfer unwanted or unusable tickets, which ensures that seats are not left empty at venues and that those who cannot attend events any more are not left out of pocket. This is a mechanism which would seem to be sensible and which we can all support.
Indeed, His Majesty’s Official Opposition, when in government, launched a review of secondary ticketing, led by Professor Michael Waterson, in 2016. We passed the Breaching of Limits on Ticket Sales Regulations 2018, which banned ticket touts from using automated software to avoid security measures designed to help fans see their favourite musicians and sports teams at a fair price.
The Consumer Rights Act 2015 required resellers to inform buyers of the true price of tickets, which should allow fans to make informed and educated decisions on what they choose to purchase. Much was done to protect fans and supporters from unfair practices in secondary ticket markets. Although protecting consumers from bad practice and exploitation is critically important, we should also remember that secondary ticket markets are not new and are no different from other types of secondary market that exist in many different sectors.
The consultation proposals announced in the Minister’s Statement in the other place consider imposing price caps on secondary ticketing. This may, prima facie, sound like an attractive proposal but His Majesty’s Official Opposition are concerned about this increasing the likelihood of a black market emerging. Price caps in other countries have been known to lead to shortages in the availability of goods subject to them and tickets are no different. That view has been supported by the Computer & Communications Industry Association, which has warned:
“Draconian regulation, targeting only the secondary market, will only mean more tickets changing hands in informal settings without the same protections that exist in proper marketplaces”.
Rob Wilson, a professor of applied sport finance, has said:
“There is little doubt that a cap on resale prices will lead to an explosion of underground activity as punters seek market value for their purchases and the flexibility to buy and sell when and how they wish”.
If the proposal for a cap on secondary ticket prices were introduced, what safeguards and extra precautions would the Government take to prevent a rise in scammers and black market ticket reselling?
Another concern we have is the proposal for a ticket resale cap. The issues with such a policy were very well evident at the Paris Olympics, where the restrictions on the resale of tickets meant that many event venues had empty seats. This not only impacted the Olympic venues themselves but meant that many fans could not participate and enjoy seeing their nation compete in a sport that they love following.
This is not the right time to go back over the national insurance contributions debate, but one has only to read Hansard to see that many noble Lords are greatly concerned about the impact that measure will have on the live music and sporting industries. At a time when these sectors already face potential negative headwinds, many of the proposals in this consultation could have further significant and detrimental effects on the venues, not to mention on the fans.
We very much hope that the Government will proceed with a measured approach and carefully consider how such proposals as outlined in this consultation will affect music, sporting venues and, crucially, those who derive so much fun and enjoyment from attending these events.