UK Government Confirms Price Cap for Ticketing Advertising and Dynamic Pricing Advice

UK Government Introduces Ticket Resale Regulations

The UK government has revealed plans to implement a price cap on the resale of tickets by scalpers and conduct formal consultations with the industry regarding the contentious “dynamic pricing” practice. Below are the specifics, along with insights from our interview with MP Chris Bryant.

Public Consultation and Proposed Changes

A public consultation was initiated today (Friday, January 10), outlining “a variety of measures for the ticket resale market to enhance fan protection, improve access to live events, and support the growth of outstanding live entertainment in the UK.”

This initiative includes capping the resale price set by companies, websites, and individuals for non-essential tickets to concerts, theaters, and sporting events. According to a government statement, the aim is to “combat ticket advertising that exploits the public,” with reports indicating music fans incur an additional cost of £145 million per year due to such practices. Last year, Oasis revealed intentions to cancel over 50,000 tickets for their reunion tour sold through secondary ticketing platforms.

In an interview with NME, Sir Chris Bryant, Minister of State for Data Protection and Telecommunications and a member of the New Labor government, emphasized the necessity of the price cap, stating, “it’s now just a matter of how the government gets things done.”

“Imagine Becky, living in flat number 83 High Street, desperately trying to secure tickets for her mother’s favorite show on her birthday,” Sir Chris explained. “She logs on at 9 am and within five minutes, all tickets are sold out. Within thirty minutes, those same tickets are up charged by five times on the secondary market. It’s just unfair.”

While discussing challenges in the secondary ticket market, Sir Chris raised two main concerns: “The first issue is how many tickets an individual can purchase, as it is evident that bots using artificial names are capable of hoarding large quantities. How can we address this?”

“Second, we need to determine the pricing limit. Should it be face value only, as implemented by the Principality Stadium for Welsh Rugby Union matches, or should it allow additional charges of 10-30%? This is part of the consultation.”

Additionally, there is discussion about establishing a licensing system, as opinions are being gathered on this topic.

Sir Chris continued, stating that “Our goal is to tackle the horrendous abuses currently visible in the secondary ticket market. We are committed to pursuing this issue during the general election.”

Proposals and Future Considerations

Other suggestions arising from the consultation include “enhancing accountability of ticket resale websites and improving consumer monitoring,” as ministers also make a “call for evidence regarding pricing practices in the live events industry, such as dynamic pricing.” This comes in the wake of recent incidents where highly sought-after tickets for Oasis’ reunion tour sold out at “surge” prices, often increasing by hundreds of pounds due to high demand without prior notice, a practice some have claimed could violate consumer protection laws. This matter is currently under investigation by the European Commission and the UK Competition and Markets Authority (CMA).

Oasis previously mentioned that they were unaware of dynamic pricing being utilized for these sales and that initial discussions between promoters, Ticketmaster, and band management did not meet expectations.

Sir Chris noted that while he could not comment on Oasis’ specific situation due to ongoing investigations, “dynamic pricing is evidently a concern.” He explained that there are various forms of dynamic pricing: “Recently, I purchased theater tickets last minute at a lower price since they were struggling to fill seats; that type of dynamic pricing is acceptable. I also run a small arts festival in South Wales, employing an early bird ticket strategy.”

“For dynamic pricing, we broadly inquire about public sentiment. We must gather evidence on the matter and may choose to act, though that is not guaranteed,” he stated, emphasizing that transparency and fairness within the ticketing system is essential. “If a system causes increased anxiety and irrational price hikes, we must ask ourselves—is this fair? We want to understand public perspective on how to rectify this.”

When asked if dynamic pricing could effectively mean primary sellers morphing into advertisers themselves, Sir Chris replied, “This consultation is open for discussions, and we welcome all perspectives on the matter.”

The 12-week consultation is set to conclude on April 4, with hopes to implement changes by 2026. Sir Chris emphasized that certain actions could be initiated immediately: “Some organizations could be much clearer about the face value of tickets, avoiding last-minute confusion with additional charges and dynamic pricing.”

“We have indicated our intention to legislate in this arena. Although this will involve primary legislation that may take time, we aim to accomplish this next year,” he added. The CMS committee, tasked with oversight of the Government Department for Culture, Media, and Sport, has expressed support for the consultation.

“The government’s initiatives will help eliminate skewed incentives that lead music fans to overpay ticket firms and advertising agencies,” said CMS committee chair Dame Caroline Dinenage MP. “The sentiments of fans need to resonate within Whitehall and throughout the live music ecosystem. This consultation should lay the groundwork for an extensive fan-driven evaluation of the music sector as mandated by the Culture, Media and Sport Committee.”

Dame Caroline also urged, “There must be an assessment of the music industry’s operations to ensure that fans’ expenditures benefit smaller venues, emerging artists, and songwriters vital to this essential sector.”

This follows the CMS committee’s endorsement of the government’s suggestion to impose a ticket charge for concerts at the arena level and above, ensuing from its investigation into the necessity for the music industry’s higher echelons to support grassroots music venues and artists.

The government has set a deadline, aiming for “concrete progress in the music industry by the first quarter of 2025” on a voluntary basis before entertaining the thought of a mandatory tax.

Recent reports indicated that UK music sales reached a 20-year high; however, industry insiders have asserted that “beyond a façade, UK artists are earning significantly less than the average salary.”