Putting fans first: the CMA’s stance on live event ticket reselling

In response to the Government’s consultation on the resale of live event tickets, the Competition & Markets Authority (CMA) published its recommendations at the end of March. In this article, we take a look at how the Government’s proposals and the CMA’s response might reshape the landscape of live event ticket reselling. 

Background 

Live event tickets are frequently resold on the secondary market through various channels ranging from specialised secondary ticketing platforms like viagogo and StubHub to in-person ticket touts and box office return outlets. Whilst ticket reselling can offer benefits to consumers – allowing them to buy tickets for otherwise sold-out events, and enabling them to sell tickets if their circumstances change – significant concerns remain around inflated prices and lack of transparency. 

Earlier this year, the Government launched Putting fans first, a consultation aimed at gathering feedback on proposals to improve fairness for fans. In March, the Competition and Markets Authority (CMA) published its response, welcoming the Government’s proposals to introduce a resale price cap, increase platform/reseller accountability and enhance consumer law enforcement. 

Key issues in the secondary ticketing market

Both the Government consultation and CMA response identify several key factors and issues affecting the secondary ticketing market, including: 

1. Bulk-buying by touts – sometimes illegally, which creates artificial scarcity and drives up prices in the secondary market. This often makes it difficult for fans to purchase tickets at face value and results in inflated prices;
2. Speculative selling by touts – a fraudulent practice where touts advertise tickets for sale that they have not yet purchased themselves, in the belief that they will be able to source these tickets later; 
3. Unclear pricing and misleading ticket labelling – the CMA outline that consumers must be given clear and timely information about ticket pricing and packages, as highlighted in its Ticketmaster consumer protection investigation; and 
4. Dynamic pricing models – which impact consumers and competition, as such mechanisms can lead to unpredictable and often higher prices due to changing market conditions.

The Government and the CMA acknowledge that these factors lead to ticket sales companies prioritising “sold-out” status for primary ticket sales, instead of pricing tickets based on demand. This enables touts to purchase tickets and resell them at higher prices on the secondary market. To address this, the Government has suggested a number of proposals. We take a look three key Government proposals and the CMA’s response to these below.

Three key takeaways from CMA response

1. Introducing a resale price cap

The Government has proposed a price cap on resold tickets, making it unlawful to sell tickets above their original price or a fixed percentage above it. This cap could apply to all live events or only certain events based on criteria such as venue capacity or popularity, with exemptions for charitable purposes or other agreed circumstances.

The CMA supports this proposal, emphasising that both resellers and secondary ticketing platforms should comply. Additionally, the CMA suggests that the Government regulates additional buyer fees to prevent excessively high charges by resale platforms under a capped model, capturing surplus from high demand events. The CMA also highlights potential issues with the proposed cap, such as circumvention through unregulated channels and the need for continuous market monitoring to ensure the cap's effectiveness. 

1. Enhancing consumer protection enforcement

Alongside the increased CMA enforcement powers introduced by the Digital Markets, Competition and Consumers Act 2024 earlier this April, the CMA welcomes the Government’s proposal to introduce a licensing system for resale platforms permitting resale above face value. This licensing system aims to increase transparency and provide regulators with better oversight of resale activity. Licensed platforms would need to meet specific requirements or face penalties for non-compliance. 

1. Increasing platform accountability and tackling incentives for touts

The Government has proposed measures to increase platform accountability, emphasising the importance of ensuring ticket price information is accessible and verifiable. To enforce the price cap, the CMA notes that primary sellers and resale platforms must ensure original ticket prices are easily identifiable. Platforms should verify key information about tickets, such as original ownership, price, and location within the venue, before listing them for resale. Additionally, the CMA recommends that platforms prohibit sellers from listing more tickets than they can legally buy on the primary market and clearly display details of any event-wide resale restrictions.

Conclusion

The Government’s consultation closed on 4 April and the outcome is expected soon. In the meantime, the Government’s proposals along with the CMA’s response paint a clear picture of what the future secondary ticketing market might look like, promising greater fairness and transparency for consumers. As we await the outcome of the consultation, companies selling and reselling live event tickets must prepare for significant changes. These changes will likely demand increased accountability, adherence to new rules and a commitment to ensuring fair access to tickets for fans. 

If you would like any further information or have any questions about the contents of this article, please contact Richard Hugo or another member of our Commercial & Technology team.

This article was written by Yadhavi Analinkumar and Emily Fox.