Why has there been a crackdown on sports ticket touting? A solicitor explains | City A.M.
Solicitor Ilana Baines explains why a legal crackdown on bots should spell the end of outrageous mark-ups on secondary ticket sales – for now, at least.
What are the problems surrounding ticket resales in sport?
We have seen a crackdown in the secondary ticketing market, widely known as touting, in the UK. A series of arrests were carried out in December, in particular individuals and companies purchasing tickets en masse, often with the use of computer programs, and reselling at vastly inflated rates.
High profile music artists such as Ed Sheeran have put in place measures to clamp down on unfair practices, but the problems surrounding the secondary market equally apply to sporting events.
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Anthony Joshua’s fight at Wembley earlier this year was a prime example, with tickets on secondary sites at prices inflated to almost £90,000.
What are the new rules, introduced in April, which affect ticket resales?
The main provisions in respect of ticketing are in the Consumer Rights Act 2015, but additional regulations came into play on 6 April 2018 primarily to deal with the increasingly online platform in which tickets are sold.
The rules provide a positive obligation for specific information to be provided when a ticket is offered for resale, including: a specific seat or gate number; details of any restrictions which limits the use of the ticket; the face value of the ticket; details of any connection the seller has with the online selling facility or the event organiser; and the Unique Ticket Number (UTN) where one has been provided.
In addition, there is now a requirement to report criminal activity to the police and event organisers. Contravention of these provisions will result in a fine of up to £5,000 for each breach.
Tickets for big sporting events are being resold at vastly inflated prices (Source: Getty)
What are ticket-buying bots and how big a problem are they causing?
As of this month, new rules have been introduced to address the use of bots. These computer programs are used to purchase huge volumes of tickets at an expeditious rate.
It is now a criminal offence to use bots, and those breaking this law could face an unlimited fine.
What specifically is being done and what are the potential battlegrounds?
The government is cracking down on the secondary ticket market to ensure consumers are protected. This can be seen by the introduction of the new regulations and also the ongoing criminal investigations being conducted by National Trading Standards.
However, these regulations will only make an impact if breaches are enforced and consequences follow. The requirement of operators of secondary ticketing facilities to report criminal activity should aid the identification and enforcement of touts who break the rules.
While the regulation should limit the bulk purchase of tickets for resale, technology is constantly evolving and prolific touts are likely to find and exploit loopholes in the legislation.
Time will tell how well consumers are protected but for now fans should enjoy sporting events without the vast mark-ups we have seen previously.
Ilana Baines is a criminal and regulatory lawyer at specialist fraud firm Byrne and Partners.