PARLIAMENTARY DEBATE
Digital Markets, Competition and Consumers Bill - 21 May 2024 (Commons/Commons Chamber)
Debate Detail
After Clause 308
Secondary ticketing facilities
That this House disagrees with the Lords in their Amendment and proposes Amendments (a) and (b) to the Bill in lieu of the Lords Amendment 104B.
The Bill will drive growth and deliver better outcomes for consumers across the UK. Both Houses have now reached agreement on digital markets measures relating to appeals, proportionality, the countervailing benefits exemption and guidance. However, the Bill returns to the House today as the need to agree on secondary ticketing remains outstanding.
Lords amendment 104B, tabled by Lord Moynihan, would introduce additional regulatory requirements on resale sites. In our view, new regulations should be considered only if they are necessary, proportionate and future-proof, and should not duplicate existing rules. Simply adding new rules and regulations that add little to what is already there is not the answer to the problems of the secondary ticketing market.
The first provision that the Lords seek to add to the Bill would require secondary ticketing platforms to obtain proof of purchase of the ticket from the reseller before listing the ticket for resale, but it is already a criminal offence—of unfair trading or fraud—for a reseller to offer for sale products that cannot be legally sold.
Secondly, the Lords amendment requires that the ticket’s face value and trader’s details be clearly visible to the consumer, but likewise, existing legislation already provides that traders must make that information clear and comprehensible. The amendment would also prevent resellers from selling more tickets than can be legally purchased from the primary market. We agree with the principle, but believe that to be unenforceable. Many sources on the primary market sell tickets, and each has their own ticket limit.
A person could purchase multiple tickets from different sources on the primary market and resell them on a platform. That would make it nearly impossible for either the platform or an enforcer to calculate what the total limit of tickets should be. We must avoid the trap of thinking that we are solving problems simply by adding words to legislation. We should not be tempted to devise legislation that cannot be implemented.
We believe that the solution lies not in more regulations, but in regulation—in other words, enforcement. This House has already radically strengthened the CMA’s enforcement powers in part 3 of the Bill. That strengthening applies to all consumer law, including on secondary ticketing. The CMA will have civil fining powers, and fines could total 10% of the global turnover of firms breaking consumer law. New powers will mean that the CMA can process many more cases even more quickly.
However, the Government appreciate the strength of feeling in both Houses on the issue of secondary ticketing. We have therefore tabled Government amendments to further strengthen the enforcement powers. Amendments (a) and (b) in lieu of Lords amendment 104B will give the CMA new powers, first to enforce existing rules against unfair buying-up of tickets using electronic bots, and secondly to enforce existing rules on the information that platforms and resellers must present to consumers. That is in addition to the Government’s previous commitment to review the primary and secondary ticketing markets. That review will allow us to gain a deep understanding of how tickets flow from the primary market to the secondary market. It will also include consideration of the timeliness and effectiveness of the information that must be provided to buyers, and of what reassurance is necessary for consumers to be confident that ticket offers are genuine.
Taken together, the CMA’s new enforcement powers and the upcoming Government review represent a clear strengthening of consumer protections. They will help to ensure that further steps can be taken in future, in the light of the good practice that has recently been emerging in the market.
In conclusion, I encourage this House to agree with the Government’s position on Lords amendment 104B, and accept the Government’s proposed amendments (a) and (b) in lieu. It is imperative that Royal Assent be achieved without further delay, so that the legislation can be implemented and the Bill’s benefits realised as quickly as possible.
“agrees with the Lords in their Amendment”.
I confess that I am completely perplexed as to why the Government have adopted the attitude that they have taken today. The Bill could have gone through both Houses quite easily and have steamed ahead to Royal Assent if they had simply agreed to these very minor recommendations from the House of Lords. We do something very similar to what the amendment suggests in relation to Olympics tickets, partly because the Olympics’ organisers insist on such legislation for any Olympics, but we also do something very similar for sporting events. The question of why we do not do exactly the same for music, comedy and other events is legitimate.
Over the years, Members have repeatedly given evidence—
Over the years, Members have repeatedly given evidence that the secondary ticket market is not working: with tickets advertised with no declaration as to whether they are real, or of their face value; websites that only declare the face value of a ticket at the very last stage, with a clock ticking away and the fan already hooked; fake tickets being sold, leaving consumers out of pocket and completely in the lurch; tickets sold without evidence of proof of purchase, or of the seller’s title to the tickets; and websites circumventing artists and venues’ policies on the resale of tickets.
Taylor Swift tickets with a face value of £75 are presently selling on Viagogo for £6,840. If a Foo Fighters fan from the Rhondda wanted to buy a ticket to see them at Cardiff’s Principality Stadium, it would have cost them £95 direct from that stadium; on Viagogo today, that exact same ticket would cost them £395. If a child from the Rhondda who loves space and hopes to one day become an aeronautical engineer wanted to see “Tim Peake: Astronauts - The Quest to Explore Space” at Swansea Arena, they would have paid £48.75 face value; on Viagogo, they would have to find £134. This is about much more than just price gouging and ripping people off from their hard-earned money: it is robbing children of their chance to be inspired, to spark a creative idea, to see a career in our growing creative industries, or to learn from an expert. That is why I wish the Government were adopting the measure passed by the House of Lords.
Fans, the people who really create the value, are being excluded from live concerts. The UK’s secondary ticketing market is estimated to be worth £1 billion annually, but it is rife with fraud and scamming, which affects people every single day. I would not even mind if just some of the inflated price money went into the creative industries, and into training young people and providing them with a creative education, but not a single penny of it does. It is set to get worse, too: ticketing security expert Reg Walker has reported “a massive escalation” of harvesting using software. People who have long used bots to bulk-buy items such as iPhones are now turning to ticket touting because it is more profitable, and according to Reg Walker, there is a new generation of young, tech-savvy armchair touts
“smashing ticket systems to bits”.
It is a market that simply does not work, and Labour will fix it.
The Lords have given us a perfectly sensible measure. Their amendment establishes a legal requirement that secondary ticketing facilities must not permit a trade or business to list tickets without evidence of proof of purchase or evidence of title, a matter not mentioned by the Minister. It forbids a reseller from selling more tickets to an event than they can legally purchase on the primary market. It requires the face value of any ticket listed for resale, and the trader or business’s name and trading address, to be clearly visible in full on the first page on which a purchaser can view the ticket—I have had a bit of debate with the Minister about that proposal, so I will come on to the specifics later. It also requires the Government to lay before Parliament the outcomes of a review of the effect of these measures on the secondary ticketing market within nine months of Royal Assent. I cannot understand why any sane person would oppose such a measure, unless it was purely and simply for ideological reasons.
I cannot understand why any sane person should oppose such a measure, but unfortunately the Government have. Their amendment (a) in lieu is a weak sock puppet of a concession. It does not strengthen the rules; it simply leaves them in place. It does not prevent tickets from being sold without evidence of proof of purchase or the seller’s title to the tickets. It does not limit the quantity of resale tickets to the original number limited by the seller or artist. It leaves in place the current system for showing the face value of a ticket, despite the fact that section 90(8) of the Consumer Rights Act 2015, in my view and in the view of everybody who has spoken to Members about this, is very opaque and open to interpretation—or, I would argue, open to deliberate misinterpretation by the secondary ticketing market.
For instance, Viagogo does not say “face value”, but has a little box that says “FV”, which is not explained anywhere on the website, and people have to click on that. If Viagogo genuinely wanted to be open and transparent, it would say “face value”, and put the price at the very beginning. StubHub is similarly advertising tickets for Taylor Swift on 21 June at £711, but nowhere on the first page does it give the face value. I note that, if someone goes on to the second page, it says $75 there, but I am told that that is not the actual cost of the ticket. Seatsnet has tickets for Murrayfield—for Taylor Swift again—selling at £1,294.79 or £1,092.15 each, and nowhere does it give the face value of the tickets. Interestingly, AEG Presents and AXS, which are managing the tickets for the concerts at Murrayfield, say that tickets are strictly not to be resold:
“Any tickets found to be purchased via re-sale on the non-official secondary market will not be valid for entry into the concerts.”
In other words, it is completely in doubt whether the tickets being sold at £711 or £1,294 are tickets that will actually gain admittance for an individual.
The Minister says that he wants to give more powers to the CMA to be able to enforce the action. The problem with that is that the CMA itself gave evidence that, when it tried to take Viagogo to court, it came up against inherent weaknesses in the existing consumer protection toolkit, and the Government are not adding anything to that consumer protection toolkit whatsoever. Indeed, they are deliberately voting down precisely what they said they wanted.
“We think that many of the changes in the Bill will address those weaknesses directly by giving us civil fining powers for the first time.”––[Official Report, Digital Markets, Competition and Consumers Bill Public Bill Committee, 13 June 2023; c. 7, Q3.]
It is not right to say that the CMA is getting no more ability to oversee this regime.
Labour will strengthen the consumer rights legislation to protect fans from fraudulent ticket practices, restricting the resale of more tickets than permissible and ensuring anybody buying a ticket from the secondary market can see—clearly, easily, readily and absolutely unambiguously —what the original price of that ticket was and where it came from. All of this could have been done today if the Government had not rejected the Lords amendment, but supported Labour on the cross-party amendment from the Lords. However, they have put touts before fans, and profits before the public.
If Labour is given the chance to form a Government, we will also go further. We will restrict the resale of tickets at more than a small set percentage over the price the original purchaser paid for it. No more touts buying a £50 ticket and selling it on for £500; no more bulk buying of seats for Taylor Swift concerts that could go to a 13-year-old fan from Wigan, but instead go to a millionaire from the US. No more scalping of our creative industries and artists, who set reasonable prices for their tickets, only to find somebody else making money off their talent and hard work by reselling them at 10 times the price. Ministers say that the CMA will enforce more, but I doubt that anything will change as a result of anything the Government are intending to do with this measure.
We have heard stories in interventions and substantive contributions, and in past debates, about the effect of an under-regulated secondary market that leaves fans paying over the odds for tickets, and places experiences beyond the financial reach of families. There is also a high risk involved that tickets purchased that way will not even grant entry to the events, and I had hoped that by this stage the Government might have read the room, understood that, and decided to respond in a meaningful manner. Let us be in no doubt: the Government amendment does little other than add the Competition and Markets Authority to the list of bodies that are able to enforce the already existing and inadequate rules on secondary ticket sales. As just about all Opposition Members can see, even if Government Members cannot, the existing rules are not working as well as they are intended to work.
The Government amendment is fine as far as it goes. It might bring a little more resource to the problem and a more strategic capability when tackling rule-breakers. I also gave two cheers when the Minister announced the promise of an inquiry at the tail end of the previous debate, but the Government are still not taking those practical measures that could be taken today with amendment 104B to clean up the marketplace for secondary ticketing.
Amendment 104B would involve measures such as a requirement to provide proof of purchase or evidence of title for the tickets for sale, which would forbid resellers from selling more tickets than they would legally have been able to purchase from the primary market. It would ensure that the face value and end price paid are clearly visible, along with the name and trading address of those doing the secondary vending. Crucially, it would also allow secondary legislation to be introduced, which could take account of and bring in anything from the inquiry that the Minister has announced, and it would compel the Secretary of State to have concluded that work within nine months. Contrary to what the Minister says, I believe that the measures in Lords amendment 104B are proportionate and add clearly to the existing Bill.
Lord amendment 104B is a bit like Lords amendment 104 which came before it. Indeed, it is almost the holy grail of amendments—it is popular, it does not cost anything, and more to the point it would be effective and do the right things in the right way for the right reasons. I do not think I am speaking out of turn when I say that hardly any Government in these isles, whether Labour in Wales, the SNP in Scotland or the Conservatives at UK level, are so overwhelmed with public support and good will at this time that they can afford to turn down good ideas when they are presented to them on a plate. It is therefore baffling that the Government would seek once again to steer these practical and effective measures off the road and into the ditch.
I will conclude my remarks by remarking on the “Dear Colleague” letter that was sent from the Minister yesterday, in which he expressed a clear desire to get the Bill on to the statue book without delay. Not a single Member of the House looking at the Bill in its totality would want it to be delayed, but we want it to go forward into legislation in as strong a form as it can be. That, for me, clearly means going forward in a way that can tackle the egregious abuses of people’s trust, and the reasonable expectations they have when they participate in the secondary ticketing market. Accepting the Lords amendment would allow everyone to do that, and I hope the Government will take heed of the genuine strength of view that exists on this matter, not just within this House or the other place, but outside and among the population at large, and that they will allow the Bill to progress as amended accordingly.
The Lords amendment includes the minimum of protection that fans deserve. It would ensure that anyone reselling a ticket has to show evidence that they have bought the ticket in the first place. As we have been hearing, that is a big issue in the secondary market, where ticket touts often list tickets that they do not own. The Lords amendment also aims to stop touts from listing more tickets to an event than they can legally purchase from the primary market.
If the Minister looks at Viagogo’s listings for BBC Radio 1 upcoming Big Weekend, he will see that touts based in Germany are selling more than 10 times as many tickets as can legally be acquired. He has said that measures to do anything about that are unenforceable, but that should not be an excuse. We cannot be standing here in this House and saying that a law that we could pass is unenforceable—it is ridiculous.
Another important measure in the Lords amendment is provision for a review to be published within nine months of the Bill passing. That is an urgent issue, and the Government must be ambitious in acting to tackle it.
I point out again to the Minister that action to crack down on ticket touting has significant support from the music industry and fans. Regulating against exploitative secondary ticketing practices is part of the manifestos put forward by music industry bodies including Live music Industry Venues and Entertainment and UK Music.
Many promoters, artist managers, venues and musicians have been highly critical of the market as it currently operates and called on the Government for urgent action to tackle the problem, but it is not just a problem for the music industry; foremost, as we have heard, it is an issue for fans. It is now commonplace for fans to miss out on tickets to sporting and cultural events only to see those same tickets on sale on a secondary ticketing site for far more money than they can afford.
With about a third of UK ticket buyers in the lowest socioeconomic bands, those inflated prices are reinforcing inequalities. The price of a ticket can make a significant difference to social and cultural inclusion, in some cases enabling marginalised or disadvantaged groups the opportunity to access events.
It is important that many venues and artists now endeavour to widen access to tickets by through-ticket pricing to certain groups, but that approach is undermined when touts use software to restrict fans’ access to the primary market and then force them on to resale sites such as Viagogo, which charge prices at the top of what consumers can bear, as we have been hearing. For example—this is disgraceful—I have been told that touts will buy up discounted tickets intended for young people, for people in wheelchairs, for carers and for others, and sell them on at the going rate on the secondary market to increase their profit margins. That has a serious impact on those consumers, who are then refused entry at the door, as well as impacting on the venue or artists that had subsidised tickets, and on the people for whom the lower priced tickets had been intended and who can no longer afford to attend the show.
I have spoken about music so far, but touting also affects other live events such as sport. Most recently, we have seen Viagogo listing up to 100 tickets for the England versus Iceland friendly at Wembley on 7 June, despite the fact that listing football tickets is illegal on unauthorised platforms—including Viagogo’s platform—for reasons of the safety of fans. When The Guardian journalist Rob Davies highlighted the listings on social media, Viagogo took down the tickets straightaway. Resale platforms should not be waiting to be caught out before complying with the law, but that is what we are seeing.
Another example of a secondary resale site having to be pushed into acting by media coverage was a recent BBC “Watchdog” report that raised concerns that some customers have not been able to receive a refund from Viagogo after being sent invalid tickets. Beth from Salisbury told the programme that she had booked a trip to Singapore to see her husband’s favourite band Coldplay as a thank you to him for his unwavering support during her cancer treatment. The two tickets to the show were bought through Viagogo for £500, but when the tickets arrived, the piece of paper said
“this is not a valid ticket”.
When she tried to get a refund, she was refused, despite the fact that Viagogo has a guarantee, apparently. In fact, it only refunded Beth’s money for the faulty ticket after the BBC “Watchdog” report. Given the weight of evidence of market dysfunction, which we have heard here and in the other place, it is disappointing that the Minister insists that the Government are already doing enough. If that is the case, why not agree to the amendment and see what comes out in the review?
Here we are again. I see that we have been joined by the hon. Member for Shipley (Sir Philip Davies), who back in 2011 did the terrible thing—he might not think it was, but I do—of talking out my private Member’s Bill, the Sale of Tickets (Sporting and Cultural Events) Bill. If it had been passed, we would not be here today, because we would have already fixed this broken market well over a decade ago. I welcome him to his place—I know he likes to keep an eye on his handiwork.
I welcome the opportunity to speak in today’s debate, as short as it might be. I am sure that the Minister is aware that I am here in my capacity as chair of the all-party parliamentary group on ticket abuse, which has done some great work in this area. I support the Opposition’s manuscript amendment, and therefore support the revised Lords amendment 104B as it relates to the secondary ticketing market. As others have done, I thank the excellent Lord Moynihan for his continued efforts as co-chair of the all-party group to regulate black market resale sites such as Viagogo. He is right to do so, and I commend his tenacity and brilliant work over many years. I fully supported the original amendment 104, but I warmly welcome the difficult decision to reintroduce the amendment with some notable changes.
The Government’s reason for rejecting the original amendment was:
“Because protections for consumers in relation to secondary ticketing are adequately provided for under existing legislation.”
However, despite uncontrolled touting taking place on an industrial scale, with tickets resold through sites such as Viagogo, there has not been a single prosecution under the Breaching of Limits on Ticket Sales Regulations 2018, no convictions for using bots under the Digital Economy Act 2017, and only two major tout prosecutions, with six individual convictions, since 2017. I can hardly see how the Government can describe current legislation as adequate.
Viagogo claims that “bad actors” such as the ticket queen
Yet while British music lovers were conned and defrauded by these crooks—they are crooks, because they are now in jail—Viagogo and other secondary websites are likely to have made millions of pounds in service fees from their transactions, perhaps as much as £4 million by my calculations. And that is for only one group of touts who were permitted to list tens of thousands of tickets, no questions asked.
I fear that this dirty money is now being used to fuel a huge lobbying and public relations campaign that, I have to say, appears to have worked on some Government Ministers and some advisers. When they champion Viagogo’s rip-off business model at the Dispatch Box, they are regurgitating at length its bogus evidence and unsubstantiated claims about the impacts of our current pro-consumer legislation, which, as I have already said, is just not adequate. From the few convicted touts alone, the secondary ticketing market is receiving potentially tens of millions of pounds in—it has to be said—the proceeds of crime. Viagogo’s boss, who has no-showed multiple times at parliamentary inquiries, declined to answer whether Viagogo may have benefited, inadvertently or not, from the proceeds of those crimes, when asked in an interview recently by Rob Davies of The Guardian.
Had amendment 104, with its five uncontroversial measures, been in place at the time, it is unlikely that these crimes would have been committed in the first place. Three things would have occurred. First, the touts would have been allowed to re-sell only the same number of tickets they could buy in the primary market. Secondly, the secondary platform operators, Viagogo and Ticketmaster, would have needed to check the receipts of those tickets. Thirdly, ticket buyers would have been provided with far clearer information about who they were buying from, and would have likely reconsidered.
This past weekend, I was also made aware, again from the article in The Guardian by Rob Davies, which my hon. Friend the Member for Worsley and Eccles South also referred to, that Viagogo was listing 100 seats at Wembley for England’s 7 June friendly against Iceland. I remind the House that the resale of football tickets without permission from clubs or football governing bodies has been illegal in England and Wales since 1994. Viagogo has been asked how many football tickets it has sold over the years—not just recently, through what it called human error—how much it has made from such sales and whether it would donate that income to grassroots football charities. Its answer? Silence. The Government must be under no illusions: this is a thriving online black market that is scamming hard-working families. With the cost of living crisis ongoing, it is heartbreaking to see live events added to the pile of small luxuries being taken away by parasitic touts and Government inaction.
In a few weeks’ time, fans will be gathering for Taylor Swift’s first UK performance. I do not know whether any colleagues are going to see Taylor Swift, but the first concert is on 7 June in Edinburgh. I have already heard of single seats, with average to poor views, going on sale for up to £600 on secondary websites—many times their face value—and seats next to each other for upwards of £1,000 each.
While this will be an amazing night for many—I am sure that the Minister and his family will enjoy it—as will all the nights that follow, I have heard from industry specialists that they expect dozens of fans at each gig, perhaps more, to be heartbroken when they are turned away with invalid tickets bought from sites such as Viagogo. Many venues have now had to set up special services to deal with these victims of fake or invalid tickets bought online, because they know that it is going to happen. Lots of fans will already have shelled out hundreds of pounds for travel and accommodation, and some may not even receive a refund for their ticket, despite Viagogo’s so-called guarantee. This was the focus of the “Watchdog” section of the BBC’s “The One Show” recently, which I shared with the Minister just last week—I hope he had time to watch it. It is still not too late to fix this broken market, and I implore the Government to support the revised Lords amendment 104B. The Minister could change his mind when he gets to his feet.
In addition, despite the overwhelming evidence and the already damning findings of the excellent independent review produced by Professor Michael Waterson in 2016 following the enactment of the Consumer Rights Act 2015, Lords amendment 104B endorses yet another review of the secondary ticketing market, which the Government have previously called for, while maintaining some of the problems that Lords amendment 104 would have fixed.
If the Government are truly committed to another review, I know that Lord Moynihan—as we have heard, a highly respected Conservative Lord and a former Minister—has already been recommended to them as a possible chair. [Interruption.] I hope that the hon. Member for Shipley is agreeing with me. I hope he agrees that that would be a very fair and pragmatic selection. It is one that I would wholeheartedly support.
I will conclude. On two occasions the Lords, having listened to evidence and the stated views of the CMA, have voted through these amendments, but Ministers seem hellbent on ignoring the views of the other place. The Lords have sent a clear message to the Government, asking them to look at the facts and think again. I ask the Minister once again: will he finally side with fans, artists and athletes, support Lords amendment 104B today, and not let this be another opportunity wasted by the Conservative Government? As I said in our last debate on this matter, they should either start putting fans first, or move aside so that we can.
The hon. Member for Rhondda (Sir Chris Bryant) presented a cap on ticket prices as his solution to this problem, but that flies in the face of the evidence given by the CMA in its report. It said that such a measure would not significantly diminish the incentive, and the misconduct would therefore continue. However, it was good to hear the hon. Gentleman finally admit that the market is a good thing—that, coming from an Opposition Member, is a revelation.
There is a common factor between what was said by the hon. Gentleman and what was said by the other contributors to the debate. He said, for instance, that face value was not made sufficiently clear on the various secondary sites, but there is a key saying clearly what face value is on the first pages of the Viagogo and StubHub websites. All those points relate to one thing and one thing only, namely enforcement, because the requirements are there in the existing legislation. We are keen to bolster enforcement. He says that we are somehow kicking and screaming to do so with this amendment, despite the fact that this Government have unilaterally brought forward this legislation. Part 3 offers huge new powers that were not added through an amendment in the Commons or the Lords; they were on the face of the Bill from day one.
The hon. Member for Gordon (Richard Thomson) asked about resources, as did the hon. Member for Na h-Eileanan an Iar (Angus Brendan MacNeil). The CMA’s budget is £122 million, so we feel that it has the necessary resources available to it. The fines and penalties can be kept by the CMA for its enforcement activities.
The hon. Members for Worsley and Eccles South (Barbara Keeley) and for Washington and Sunderland West (Mrs Hodgson) made similar points about the inappropriate resale of tickets—for England football matches, for example—and refunds that have not been processed properly. Only six people have been prosecuted for abuse in this sector, and we want to see more. Prosecutions for the use of bots have not been brought forward, and the amendment allows the CMA to do that. All the concrete action that the hon. Member for Worsley and Eccles South calls for is about enforcement, not more regulations. I absolutely agree with that, and we want to ensure that there is more enforcement in this space.
It is of paramount importance that we get this Bill on to the statute book so that it can start delivering for businesses and consumers as soon as possible. I thank all who have helped to get to this place, including the Clerks, the officials in the Department and the Bill team. I thank them for their hard work on this legislation, and I hope that all Members will feel able to support our position.
Question put, That the amendment be made.
Resolved,
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