Breaching of Limits on Ticket Sales Regulations 2018 — House of Lords, 2018-06-13
Topic: Domestic Commerce
Thomas Ashton (Conservative, Centre-right): My Lords, these regulations will be an important addition in our efforts to stamp out unacceptable behaviour in the ticketing market. I know that the activities of the secondary ticketing market are of interest to many noble Lords, including those here today. The Government recognise that the process of distributing and buying tickets can often be a cause for public frustration and concern. Many of us have experienced the frustration of waiting for tickets to go on sale for our favourite events, our fingers hovering over the keyboard in the final countdown, only to find that all the tickets seem to have been mysteriously snapped up in seconds What is even more frustrating is seeing tickets reappear on secondary sites almost instantaneously, often at a huge mark-up in price. There is evidence that this is largely caused by the use of software or bots to automate the ticket purchasing process on the primary market to circumvent limits on the maximum number of tickets that can be purchased. This issue was specifically addressed by Professor Waterson in his independent review of consumer rights provisions relating to online ticket sales, which reported in May 2016. His view, which the Government share, was that ticket sellers should adopt strategies to prevent automated ticket purchasing by bots, although he also noted that there was some uncertainty over the existing legal position on their use. This instrument clarifies the law in this area by making it a criminal offence to purchase more tickets than the maximum permitted for a recreational, sporting or cultural event in the United Kingdom where the purchase is made electronically through the use of software designed for this purpose and where the intent is to obtain financial gain While the regulations apply to events in the United Kingdom, they cover activity to obtain tickets in any jurisdiction. The intended offence will be summary only, with a maximum punishment of an unlimited fine in England and Wales, and an exceptional summary maximum in Scotland, as magistrates’ courts in Scotland do not have the power to impose unlimited fines. The relevant section of the Digital Economy Act 2017 was not commenced in Northern Ireland because of the ongoing suspension of the Northern Ireland Executive, but it is the intention for it to be commenced and for this instrument to apply to events in Northern Ireland once legislative consent is able to be secured These regulations will, we hope, significantly improve the current situation, in which so many tickets for an event can disappear within seconds of their going on sale. They should be seen alongside other measures to address unacceptable behaviour in the ticketing market, such as the ticket information requirements set out in the recently strengthened Consumer Rights Act 2015; the enforcement work of National Trading Standards, the Competition and Markets Authority and the advertising industry’s own regulator, the Advertising Standards Authority; and the adoption by event organisers and ticketing agencies of innovative technological solutions such as blockchain and ticketless tickets. I hope noble Lords will agree that these regulations are a necessary additional tool in helping fans improve their chances of securing tickets at reasonable prices.