StubHub Speaks on UK Gov Plan to Introduce Ticket Resale Caps

Photo Credit: Mike Mozart / CC by 2.0

As the UK government prepares to introduce a price cap on the resale of tickets to live events, ticket resale platforms are speaking out.

The UK government plans to ban the resale of live event tickets at inflated prices in a bid to tackle the onslaught of ticket touts snapping up tickets for popular events to make a profit. As a result, shares in the U.S. company StubHub, which also owns reseller Viagogo, fell by 14% on Monday. Now, StubHub and Viagogo are speaking out.

“The government’s intention to implement a price cap on the resale of live event tickets will condemn fans to take risks to see their favorite live events,” said a StubHub International spokesperson in a statement to DMN. “With a price cap on regulated marketplaces, ticket transactions will move to black markets.”

“When a regulated market becomes a black market, only bad things happen for consumers: fraud, fear, and zero recourse,” the spokesperson continued. “We have seen the evidence—jurisdictions with price caps have fraud rates four times higher than in the UK. A robust and well-functioning secondary ticketing market is vital to protecting fans and providing safe access to the events they love.”

“We urge the government to rethink this policy, working collaboratively with the ticketing sector on a regulatory solution that does not put fans at more risk,” they concluded. “StubHub International is committed to providing a secure, trusted, and transparent marketplace to buy and sell tickets. We are one of the safest options for consumers wishing to purchase a resale ticket, and we remain dedicated to protecting fans in their pursuit to see their favorite live events.”

Viagogo, meanwhile, said that processes to verify tickets would be a more effective way to stop illegal bot activity than limiting resale prices.

“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,” a Viagogo spokesperson told Reuters. “Opening the market to greater competition also helps drive prices down, benefitting fans.”

The government had reportedly been considering setting a cap of up to 30% above face value for the resale of tickets. But since then, outlets like The Guardian and Financial Times have reported that the resale of tickets above face value would be banned altogether, with a cap on the fees that resale platforms could charge.

On Tuesday, November 18, the UK’s Competition and Markets Authority (CMA) said it had opened investigations into a number of online platforms’ pricing practices, including StubHub—which is separate from the U.S.-listed company—and Viagogo.

“We remain fully cooperative, and look forward to working with the CMA as part of its investigations,” the StubHub spokesperson told DMN. Viagogo also said it was cooperating with the investigation.

“At a time when household budgets are under constant pressure and we’re all hunting for the best deal possible, it’s crucial that people are able to shop online with confidence, knowing that the price they see is the price they’ll pay, and any sales are genuine,” said CMA chief executive Sarah Cardell.

The CMA has reviewed over 400 businesses across 19 sectors since April, but has also sent advisories to 100 firms about online sales tactics, which also included fitness chain Gold’s Gym and homeware retailer Wayfair in the UK. These outlined concerns about the use of additional fees and other online sales tactics.