Live Events Ticketing: Resale and Pricing Practices

18:05:00

With permission, Madam Deputy Speaker, I would like to make a statement about ticketing in the live events sector. In the words of the musical “Hamilton”, there is nothing quite like being “in the room where it happens”. I would hazard a guess that every single one of us here can remember the first time we went to a live event. My first rugby international was Wales versus Scotland at Murrayfield aged 12—the food was terrible. My first live gig was U2’s “The Joshua Tree” at Wembley arena. These moments of shared passion are part of what makes us the people we are. As Gloria Gaynor said, “There’s nothing to compare to live music, there just isn’t anything.” No wonder live events are so highly prized. But for far too long, ticket touts have leached off fans’ passion. In the past, it was spivs in long raincoats at the gates. Nowadays it is a trade made all the more pernicious by the internet, which enables modern-day touts, hiding behind multiple false identities, to hoover up tickets and sell them at vastly inflated prices. It is indefensible. It trades off other people’s hopes and does not return a single penny to the artists, the performers, the venue, the industry or the sport. We said we would tackle this, and that is precisely what we are doing. On Friday, the Department for Business and Trade and the Department for Culture, Media and Sport published a consultation on the resale of live event tickets and a separate call for evidence on pricing practices in the live events sector. It is not a consultation on whether to act; it is a consultation on precisely how we should act. The UK has a world-leading live events sector. Our artists, festivals and venues bring joy to audiences across the country. Last year, the sector employed over 200,000 people, contributing to local economies up and down the country, from stage technicians and sound engineers to venue staff and promoters. Every event—whether a major stadium event or an intimate gig at a grassroots venue—injects life into local communities and economies, supporting small businesses and generating significant revenue for our towns and cities. It is musicians, performers and athletes who make the events what they are and who create the value that sits behind them, not the ticket touts. Live events are a catalyst for creativity, too, where artists have a platform to hone their craft and relate directly to audiences, as well as to earn a living. Live performances create unforgettable shared experiences that transcend cultural and social boundaries, uniting communities up and down the country and shaping our national identity. However, too many fans are missing out on opportunities to experience those live events. Put simply, the ticketing market is not working for fans. The Government recognise that a well-functioning ticket resale market can play an important role—for instance, allowing those who cannot attend an event to give someone else the opportunity to go in their place. But far too often tickets are listed on the resale market at extortionate prices, many multiples of the face value. Just one example: standing tickets for Charli XCX’s current UK tour were originally priced at £54, but they have been listed on ticket resale sites for as much as £400. That is enough, as she herself would put it, to “Shock you like defibrillators”. So-called scalping is the work of organised touts, who systematically buy up tickets in bulk on the primary market then resell them to fans at hugely inflated prices. The Government are committed to putting fans back at the heart of live events and clamping down on unfair exploitative practices. In doing so, we want fairness for fans and an economically successful live events sector. We made a manifesto commitment to act on this issue, and that is precisely what we will do. That is why we have launched a consultation as the first major step towards delivering on this ambition. We want to act in an effective and responsible way, ensuring that any new protections work for fans and the live events sector. The consultation outlines a range of potential options to address ongoing problems. We are revisiting the recommendations from the Competition and Market Authority’s 2021 report on secondary ticketing that were not taken forward by the previous Government. They include a licensing regime for resale platforms, new limits on the number of tickets that individual resellers can list, and new requirements for platforms to ensure the accuracy of information about tickets listed for sale on their websites. We are also keen to tackle scalping—that is to say for-profit resales of tickets above face value. That is why we are considering a statutory price cap on ticket resales, as seen in many other countries. Its purpose would be to break the business model of organised touts by prohibiting resale at vastly inflated prices. In the consultation, we ask how a price cap should be designed and implemented, so as to deliver a genuine sea change in the ticketing landscape to the benefit of fans and the live events sector, and whether it should be face value only, or plus 10%, 20% or 30%. There is one other aspect—we might call it “the Oasis moment”—on which we are seeking evidence. The live events sector has adopted new approaches to selling tickets in recent years, including the use of new pricing strategies, and technologies such as dynamic pricing. I want to be absolutely clear: not all dynamic pricing is harmful. Fans often take advantage of early-bird tickets and last-minute price reductions—that is absolutely fine and we have no intention of stopping it. The key thing is that fans are treated fairly and openly, with timely, transparent and accurate information presented ahead of sales. To better understand these changes and the challenges faced by fans, we are publishing a call for evidence on pricing practices in the live events sector. The consultation and call for evidence will be open for 12 weeks. We strongly encourage all interested stakeholders—fans, artists and performers, ticketing platforms and the wider live events sector—to respond. Once the consultation is complete, we will decide on next steps, but the House should be no doubt that we intend to act. We have a world-class live events sector in the UK, but we do not have a secondary ticket market to match. In the words of T. Rex: “It’s a rip-off Such a rip-off”. To the fans, the performers and the touts, let me be crystal clear: we will clamp down on unfair practices in the secondary market. The question is not whether but how we improve protections for fans. I commend this statement to the House.

I call the shadow Minister.

18:12:00

I thank the hon. Gentleman for advance sight of his statement. As he said, dynamic pricing is a strategy used across many industries outside the creative sectors, including by hotels, taxis and airlines. It can offer significant benefits for consumers when prices are low—for example through early-bird tickets or late ticketing. The Government are right to emphasise the importance of transparency. Oasis fans know—I am one of them—that we did not have the necessary information up front, and I understand that the Competition and Markets Authority is rightly investigating that episode. However, it is my view that new regulations should be considered only when they are necessary and proportionate and do not duplicate existing rules. Current legislation already states that although dynamic pricing is legal, it must be implemented transparently. I can assure the Minister that we will carefully consider any proposals that could strengthen, improve or simplify the market for fans, but I warn him that we will oppose regulation introduced for the sake of introducing new regulation. The secondary ticket resale market plays an important role for artists, fans and venues. It can provide a safer way to transfer unwanted tickets, ensuring that seats in venues are not left empty. The Minister claims that his reforms will better protect fans, improve access to live events and support the creative sectors. He claims that the proposals will give power back to fans and prevent them from being fleeced by ticket touts. We know that that is not true, however. We know that Labour’s plans will harm fans and venues, and make live events even harder to attend. [Interruption.] The Minister wants to know so I will tell him. Let us first discuss price caps on resale tickets. The Government’s consultation proposes capping ticket resale prices to somewhere between the original price and a 30% uplift. That may seem on the surface like a reasonable measure, but we know that it will lead to an upsurge in black market activity and to more money flowing into the pockets of ticket touts. In fact, price controls would lead to a surge in unregulated and illegal transactions, leaving fans with little to no consumer protections. The Minister might not believe me, a free-marketeer, but in response to Government’s consultation, the Computer and Communications Industry Association, warned that “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.” I regret to say that the Government’s proposed measures to increase the regulation of resale websites and apps, and to raise fines for rule violations, will not prevent fans from turning to underground markets. We have already seen that in Victoria, Australia, where a 10% profit cap failed to prevent significant mark-ups on ticket prices, and even led a spike in the number of ticket scams. We know that scams are already a serious issue in the secondary ticketing market. For example, and as the Minister will be aware, Lloyds Bank estimates that Taylor Swift fans lost £1 million in ticket scams ahead of her tour. If his policy had been in place, how much more would fans have lost to scammers? We know that a ticket resale cap will lead to empty seats and the prevent spontaneous ticket purchases. We saw that at the Paris Olympics, where restrictions on the resale of tickets left empty seats at many venues. Empty seats are bad not just for artists, but for the economy. Events at stadiums and venues provide a boost for local businesses, including restaurants, bars and other hospitality venues. Let us be clear: the hospitality industry is already under a lot of strain, not least because of the Budget of broken promises. Labour’s national insurance jobs tax, and its slashing of reliefs, have led the Music Venue Trust to warn that many businesses are at “immediate risk of closure, representing the potential loss of more than 12,000 jobs, over £250 million in economic activity and the loss of over 75,000 live music events.” Let us be clear: the reason we are here today is that the spin doctors in No. 10 are trying to move the news cycle away from a beleaguered Prime Minister, a Chancellor already drowning in the debt markets, and an anti-corruption Minister being accused of corruption. All the while, the Government and the Department are throwing creative industries and hospitality businesses under the bus.

Lordy, lordy, lordy! The hon. Gentleman says that he is an Oasis fan, but to be honest given how he talks about the last Tory Government, I think he must be a Nirvana fan—because everything was absolutely perfect when he was a Minister, wasn’t it? Let me first put something right. The hon. Gentleman seems to think that our call for evidence on dynamic pricing is about all sorts of different industries, but it is only about the live events sector. We are not talking about the tourism industry, hotels, taxis or anything like that; we are talking solely about the live events sector. We recognise that that was not part of our manifesto commitments, so we want to hear people’s evidence and whether we need to take further measures. One thing that I can say confidently is that it seems horribly unfair for someone logged into the system to see the ticket price going up—£120, £125, £130, £135—because that creates a sense of panic that they must buy one. It is perfectly legitimate to consider whether that is a good way of selling tickets and whether it is fair to consumers. That is a legitimate question to ask. I cannot comment on the Oasis situation; the hon. Gentleman knows perfectly well that the Competition and Markets Authority is investigating that. Let me correct the hon. Gentleman’s other point. He kept saying, “We know that” this, that or the other will happen. Well, we do not know, for a start, but more importantly, let me explain to him what we are really trying to tackle. It is the thing where, say, Becky, who lives in flat 23, No. 75 High Street, is desperate to get two tickets to see her mum’s favourite band on her mum’s birthday later that year. She is absolutely desperate, so she tries and tries again to log on at 9 o’clock. She cannot manage to get into the system, but can see the tickets selling. At 20 past 9, all the tickets are gone but then—lo and behold—at 21 minutes past 9, they are available on the secondary ticketing market for vastly inflated prices. That is what we are trying to tackle. It is a very simple problem. The hon. Gentleman referred to just one country, but loads of places around the world—France, Italy, Ireland, Poland, Portugal, Norway, Japan, Belgium, most of Canada, most of Australia, Israel, and several states in the United States—have simple measures in place. We want to ensure that we tackle that very simple problem. In the end, the value is created by the artists themselves and by the passion of the fans. It should not go into pockets that are not, in the main, based in this country and certainly have not contributed anything to the creation of that value in the first place.

Having campaigned on this issue for over 15 years, I have reached three main conclusions. First, the cap on resale should be set as low as possible—for example, face value plus 5% or 10%—to take the incentive out of scalping, or else we should simply follow the Irish model and prohibit resale for profit altogether. Secondly, many touts and resale sites are based overseas, so legislation must be supranational. Finally, any crackdown on the black market must be fully enforced, unlike in the current situation where prosecutions are few and far between: there have been a handful—six at most. Does the Minister agree?

I agree that my hon. Friend has campaigned on the subject for 15 years, because I have heard nearly every speech she has made on it, and she has been absolutely magnificent over the years. I pay tribute to her. Many artists in this country will be grateful for her work because so often they are caught in a completely invidious situation as they see tickets going for preposterous prices. I looked earlier at StubHub, which is selling Dua Lipa tickets for Wembley on 20 June with a face value of £81.45 for £2,417. For Jimmy Carr at Milton Keynes in two days’ time, Viagogo has tickets with a face value of £60 for £202. That is the problem that we must deal with. My hon. Friend is absolutely right about supranational issues; this problem does not just apply in the UK. It is difficult for us to prevent these people from selling tickets for Olivia Rodrigo concerts in Mexico, but we can ensure that measures do apply for Olivia Rodrigo concerts in the UK. She is also absolutely right about enforcement. That is why we are looking at whether there should be a licensing regime and, if so, precisely how that should work. She has made this point in many speeches—I will reiterate it for her: we have hardly seen any prosecutions whatever under the complex set of rules that there are at the moment, and that is one of the things that we have to fix.

I call the Liberal Democrat spokesperson.

I add my thanks to the Minister for advance sight of the statement. It is good to have the Government’s next steps to try to support fans, performers and others working in the live events industry laid out in the announcement. We know the huge value of live events in this country, which make a great contribution to our economic as well as our cultural wellbeing, and it is right that the Government are taking action. Too many fans across the country have fallen prey to sharp practices and touts ripping them off, and the Liberal Democrats are supportive of taking action. The Liberal Democrats have long called for the implementation of the Competition and Markets Authority’s recommendations to crack down on ticket resale. Those recommendations should be leading the Government forward on this issue. Measures such as capping ticket resales are important. Can the Minister provide greater clarity on the Government’s intentions in that regard? Will he suggest what cap on ticket resales the Government would favour at the moment and what new powers of enforcement they will give to trading standards and the CMA? Beyond those measures, will the Government consider being more ambitious by, for example, giving consumers more control by requiring ticket companies to provide accurate information on price increases or answering Liberal Democrat calls to review the use of transaction fees? I want to be clear that we welcome the Government’s looking at the queuing systems used by ticket sellers in both the primary and resale markets and considering measures that could address the current situation, which, as the Minister described, too often feels unfair and arbitrary to those fans on the end of it. Hearing the voices of fans in this discussion is undoubtedly important, so we really welcome the consultation, but fans also want to know that the Government will get on and act to solve these problems. To conclude, may I ask the Minister to inform the House about when fans will start to see some changes being implemented?

I welcome the hon. Member to his post and welcome the Lib Dems’ support for what we are proposing. There are just a couple of things. He referred to accurate information, which it could certainly be argued is already legislated for but not well enforced. Indeed, when I looked at some of these sites earlier today, it was interesting to see that sometimes the face value was findable, but not at the same time as the price to be paid. We would think it should be mandatory for somebody to be able to see both at the same time, to see whether they are going to be ripped off. I personally do not subscribe to the line that if somebody is prepared to pay £2,417 for a Dua Lipa ticket, so be it. It seems to me that that is effectively the line from Eurythmics: “Some of them want to be abused”; I do not think that we should adopt that policy at all. On the point that the hon. Member made about transaction fees, I think that I am right in saying that section 230 of the Digital Markets, Competition and Consumers Act 2024 would already apply to what he is arguing for. If I have got that wrong, I will send him a note. Madam Deputy Speaker, I note that at one point—it may have been at a particular event—you said that your favourite song was “Girls Just Want to Have Fun” by Cyndi Lauper. She performed at the Royal Albert Hall last year, and I am not sure whether you were there.

I commend the Minister for his astonishing memory.

The statement is hugely welcomed by me, after the disappointment of my private Member’s Bill on this subject falling off, and by my constituent Alison Martin, the mum of Coldplay’s Chris, who fed into my Bill. Will my hon. Friend the Minister assure me that he will resist the argument about over-regulation of our lives and market forces that we hear “Time After Time” from Conservative Members? We just heard it again. When I was trying to get sign-ups for my Bill, many Conservative Members did not want to know. This is a consumer protection measure—a cap for all our constituents—to stop those bots from hoovering up tickets and hiking up prices. Will the Minister also reiterate that we are not against all dynamic pricing? The price of tickets can go down as well as up, and we do not mind that.

I commend my hon. Friend on her private Member’s Bill. I told her that we were going to be acting fairly soon so her Bill might not be necessary. She did not believe me, and she ploughed on, but we are intent on acting. My hon. Friend is quite right about dynamic pricing. I have been involved in a small arts festival in Treorchy in my constituency where we offer early-bird tickets. That is a form of dynamic pricing that I think works for everybody, and we certainly do not want to prohibit that. My hon. Friend is quite right: much as I like my opposite number, the hon. Member for Meriden and Solihull East (Saqib Bhatti), I find it quite easy to resist him. When I think of the previous Government, I keep thinking of this line from Pink: “What about all the plans that ended in disaster?”

I call the Chair of the Culture, Media and Sport Committee.

I welcome the Government’s putting music fans at the forefront of these consultations, although the Minister will know that I would like him to go further and have a full fan-led review of music. Meanwhile, looking at the details of these consultations, it is telling that while Ticketmaster welcomed the resale consultations, it is silent on the dynamic pricing issue. The Minister will recall that Oasis told their fans that dynamic pricing was a “tool to combat ticket touting”. Does he agree that if the Government act decisively to stop large-scale touting from inflating ticket prices, there will be less need for promoters such as Live Nation to have to use dynamic pricing?

The hon. Member makes a good point, and it is a delight to be able to agree with her on something in this area at the moment. We might yet have a little bit of a disagreement over copyright and artificial intelligence, but I think that is only because she has misunderstood what we are trying to do. I hope to be able to sit down with her and talk it all through. We want to ensure that we get the legislation right, and that is why we are doing a consultation rather than just storming ahead with a piece of legislation. As my hon. Friend the Member for Washington and Gateshead South (Mrs Hodgson) said, there is no point in carrying out any of these measures unless we have a proper system of enforcement.

I pay tribute to my hon. Friend the Member for Washington and Gateshead South (Mrs Hodgson) for the doughty way in which she has fought this corner for many years. I remember how even back when I was the shadow sports Minister and this was my area, she was campaigning hard on it. This is very much legislation in favour of the fans. We have to remember that, in many cases, the artists realise that their own fans are being priced out of being able to go to their concerts by the practices of these online ticket touts, so legislation is well overdue if we want to make tickets affordable so that true fans can see their favourite bands and artists. I urge my hon. Friend to move ahead swiftly to bring it in.

I am very grateful to my hon. Friend, and I commend him too, because he has been working on this issue for quite a long time—when he was shadow sports Minister, it was one of the things that he was keen for us to progress. I am joined by the sports Minister, my hon. Friend the Member for Barnsley South (Stephanie Peacock), and of course one of the ironies is that in some sports, we already implement something remarkably similar, if not tougher. It is perfectly legitimate for us to be moving in a direction that puts those sectors on an equal footing. I take my hon. Friend’s point about speed. I recognise that I did not respond to the question from the hon. Member for St Neots and Mid Cambridgeshire (Ian Sollom) about when we will get action. I very much hope that if we get a clear answer from the consultation, we will be able to come forward with plans as a matter of urgency. There must be a King’s Speech coming along some time soon.

Continuing the Cyndi Lauper theme, I am sure the Minister agrees that we have to see these touts in their true colours. The fact is that they will try to find ways around these eminently praiseworthy proposals. Let us imagine that the Minister gets his cap in place; what is to stop an undercover operation going ahead with a large number of individuals trying to make a small number of sales each on a website such as eBay? How would the Minister be able to enforce the cap in a situation like that?

It is not just about the cap—we are consulting on several elements, one of which is how many tickets an individual seller should be able to purchase. The shadow Minister, the hon. Member for Meriden and Solihull East, could have argued that some of this is already dealt with in the legislation, but I would argue that the legislation is not clear enough, which is one of the things we need to tackle. If we look at all the different bits of legislation we have accumulated over the years, every time there has been a Bill that my hon. Friend the Member for Washington and Gateshead South has been able to table an amendment to, with support from some magnificent people in the House of Lords, it has been possible to get things through. That is why we may need to do quite a bit of rationalisation of the legislation in this field, but the right hon. Gentleman makes a good point: we will always have to keep ahead of the game.

I am delighted by the Minister’s statement today. This consultation will be welcomed by the entire co-operative movement, which has been campaigning to keep fans at the heart of music. Access to culture is such an important part of our country, and our movement stands as the party of the consumer. Does the Minister agree that actions such as taking this consultation forward are the best way to extend access to culture for real fans?

Yes, I do. Incidentally, there is another point on which we want to make real progress. We must have not only the massive gigs that everybody loves going to—where you can celebrate with thousands—but very intimate gigs. One of the most special moments is seeing a band perform first in a tiny venue of just 100 or 150 people, and then seeing them in a massive venue, performing at Glastonbury or whatever it might be. We need to look at the whole of the music system in the UK. That means a creative education for every single child—wouldn’t it be good if every child had the opportunity to go to live music at least once a year, as well as the opportunity to learn a musical instrument or learn how to sing? Those are all parts of the whole-of-music approach that we need in this country.

I warmly congratulate the Government on bringing forward these measures, which I wholeheartedly support. I was very surprised by the response from the Conservative Front Bench; I think they have got caught up in some garbled, ill-informed nonsense, but I really hope that in time, they come on board with these proposals, because they are important. For too long, music fans have been ripped off and abused by the touts and scalpers, who have been nothing other than parasites on our live music sector, so I wholeheartedly welcome these proposals. I pay tribute to the hon. Member for Washington and Gateshead South (Mrs Hodgson), as well as the FanFair Alliance—which has been campaigning on this issue for such a long time—and campaigning newspapers such as the Daily Record that regularly feature large articles on it. While we have this in place, I would like to hear more about the proposals on dynamic pricing, which I think is the issue that perplexed music fans more than anything else over the summer. We now have some sort of routeway towards resolving ticket touting, but we need to hear more about exactly what the Minister will do about dynamic pricing, because that is something that needs fixed.

It is always a delight to be able to please the hon. Gentleman—as I think he would confess, that is not an event that happens very often on the Government Benches. I am not sure whether any tickets are available for his music gigs, or whether they are selling at multiple prices, but he has been a doughty campaigner for the creative industries over the years, and I welcome that. We were very clear in the general election about what we were going to do in relation to the primary issue. We did not make any commitments around dynamic pricing, which is why we are offering a much more tentative approach to that issue. We also know that there are forms of dynamic pricing that work extremely well; when a person buys a last-minute theatre ticket, that is a form of dynamic pricing, because you want to get the theatre full at the end of the day. We want to tread a bit more carefully in that area, which is why we are launching a call for evidence, rather than presenting our proposals at this stage. If the hon. Gentleman has got good ideas about what we should do, my door is open—do come and talk to us.

I am made up at today’s statement, especially as someone with a music industry background and as a big fan. Dynamic pricing made headlines last summer when Oasis’s fans were hit by prices that were two, three, or even four times the face value of the tickets after they had queued for hours and hours. When they got to the payment stage, they had a matter of minutes to decide whether they wanted those tickets. John Robb, the music writer, said that dynamic pricing is “exploiting people’s excitement in the worst possible way” after Ticketmaster behaved no better than the touts they claim to protect fans from. I welcome the call for evidence about this practice, but can the Minister assure me that it will lead to real action so that fans are no longer ripped off by surge pricing?

Just about the first thing my hon. Friend said to me when she collared me in the Lobby after we had won the general election was, “You are going to do something about ticket touts, aren’t you?”, so I am glad I am able to please her this afternoon. One of the worst things that can happen—I am sure every member of Oasis would say this—is for everybody who has gone through the process of buying tickets to be saying, “Don’t look back in anger.” [Hon. Members: “Oh!”] Sorry, I had to work really hard to fit that in, but it is a true point. We want the process of buying a ticket to be fair, open and transparent, and for the person buying the ticket to feel that they have got a sane and sensible deal, rather than that they have been ripped off. The problem with the present situation is that all too often, people feel that they have just been ripped off, which undermines the joy and passion of the event.

Every time the Government propose something that is in the interests of the consumer and the public, I am so excited, so I welcome the Minister’s statement. As well as dynamic ticket pricing, where the price of the ticket itself fluctuates —always in the wrong direction—there are high and disproportionate service fees, which can also become higher during peak times. Does the Minister agree that there is a clear need for transparent pricing for consumers, so that they can see a breakdown before they press “buy”?

I agree 100% with the hon. Gentleman about the fees issue. There is an argument that it is already dealt with by section 230 of the Digital Markets, Competition and Consumers Act 2024, but that is why we are consulting on that specific issue. To the ticket touts who have complained about this, I say that in the words of the musical “Chicago”, they had it coming—they only had themselves to blame.

I thank the Minister for his very positive statement, and I believe everybody in the Chamber will be encouraged by what he has announced. He is surely familiar with the Oasis lyrics, which I promise not to sing: “And so Sally can wait, she knows it’s too late as we’re walking on by.” Unfortunately for many fans, waiting was not an option, and they were left with the painful reality that dynamic pricing made their wallets melt away. Given reports that fans were subjected to inflated prices through in-demand dynamic pricing, with tickets jumping from less than £150 to over £350 in moments, how will the Minister ensure that ticket sellers—and event organisers in particular—comply with the proposed consumer protection laws, especially those requiring transparency in pricing?

I am grateful for the hon. Member’s comments, and for his musical rendition. He did not put it into song, for which I should probably be grateful as well, but—I do not know—maybe he has a beautiful high tenor voice. One of my anxieties about this whole situation is that there have not been very many prosecutions, which is perhaps because the law has been too complicated. However, it may also be because trading standards departments have really struggled in recent years, because they are subject to local authority budget cuts. That is why this, for me, is part of the whole of what the Government are trying to do, which is to put our public services back on a much more solid and secure footing and to bring in legislation that stands up for consumers. However, I am grateful to the hon. Member, and if he has any particular ideas on how we could specifically ensure that there is proper enforcement, not least in Northern Ireland, I would be really grateful to hear from him.