UK Government Moves to Outlaw Ticket Resale for Profit
London, UK – The UK government is poised to outlaw the resale of tickets for profit, a move set to dramatically reshape the secondary ticket market and potentially impact major event organizers and resale platforms like Viagogo and StubHub. The proposed legislation, announced Monday, aims to cap resale prices at face value, effectively eliminating the practice of “tout” activity that has long inflated ticket costs for consumers.
The crackdown responds to years of criticism over exorbitant markups on tickets for concerts, sporting events, and theater performances.While legitimate resale platforms argue they provide a service connecting fans, consumer advocates and artists have decried the industry’s practice of allowing individuals to profit from scarcity and demand. The change will affect fans,ticket vendors,and resale companies,with shares in US-listed StubHub Holdings dropping 10% following reports of the ban.
In practice, the viability of platforms like Viagogo and StubHub is now in question, as their business models rely on taking a commission from inflated resale prices.Face-value resale sites, such as Twickets and Ticketmaster‘s internal exchange, offer alternatives but currently represent a smaller portion of the secondary market.
The Guardian has previously investigated the ticket resale industry, revealing how prolific touts have generated substantial income by acquiring tickets and capitalizing on high demand.
StubHub International responded to the planned cap, stating it would “condemn fans to take risks to see their favorite live events,” arguing transactions would shift to unregulated black markets. A spokesperson said, “With a price cap on regulated marketplaces, ticket transactions will move to black markets.”
Viagogo echoed these concerns, with a spokesman claiming, “Evidence shows price caps have repeatedly failed fans, in countries like Ireland and Australia fraud rates are nearly four times higher than in the UK as price caps push consumers towards unregulated sites.”
StubHub Holdings is the parent company of Viagogo, though the UK StubHub brand operates as a separate entity following a 2020 split mandated by the UK consumer watchdog during a proposed merger. The government has declined to comment on the specifics of the legislation at this time.
