UK Government Bans For-Profit Ticket Resale in Major Consumer Protection Move
The UK government has confirmed a ban on the for-profit resale of event tickets above face value, targeting specialist platforms and social media sales. This regulation, excluding the Wimbledon debenture model, aims to curb ticket touting and protect consumers, with the implementation date yet to be announced. Minister Kate Dearden described the policy as a "no-brainer."
The new stance follows a decade of campaigning by consumer groups and musicians, including Radiohead, and aligns with Labour's manifesto pledge to prohibit resale for profit. The government expects consumer savings of up to £112 million annually, approximately £37 per ticket.
Oversight will be conducted by the Competition and Markets Authority (CMA), with penalties reaching up to 10% of turnover, which could amount to roughly $180 million for Viagogo's US parent company. The move threatens the current resale market model, especially affecting top resellers and potentially reducing viability for low-margin platforms like Twickets.
Industry reactions highlight concerns about ticket guarantees and refund policies offered by resale platforms. Banks have warned of potential increases in fraud and chargebacks, while the FanFair Alliance remains skeptical of the policy's effectiveness. A Bradshaw Advisory report linked to StubHub notes higher fraud levels in comparable markets but lacks pre-ban data for full assessment.
Cross-border enforcement remains a concern; however, officials suggest legislation will apply internationally, similar to protections established around the London 2012 Olympics. Since the announcement, StubHub Holdings shares have dropped by approximately 20%.
