Waterson Report On Secondary Ticketing

It states that the secondary market “cannot be considered in isolation from the primary ticketing market (…) because many of the issues encountered by secondary market ticket buyers stem from issues in the primary market or are influenced by the interaction between the primary and secondary ticketing markets.” The fact that promoters and venues often used a variety of ticket sellers led to consumer confusion regarding legitimate and illegal offers. A consumer survey accompanying the professor’s review found that “nearly a quarter of tickets buyers thought the reseller website was an official vendor of the ticket,” which “demonstrates some lack of consumer knowledge.”

Waterson makes a total of nine recommendations, including clarifying and enforcing the ticketing provisions that already exist in Britain’s Consumer Rights Act. “Clarification and enforcement should, in my view, take precedence over the creation of new legislation wherever possible,” Waterson states. The onus of making sure resellers comply with the CRA should be on the secondary sites, which is why a mechanism to monitor the major platforms was needed. In cases of actual fraud, police should get involved.

While secondary sites tend to hide behind the fact that they just provide a platform, they’re best-positioned to identify traders from consumer sellers. If they aren’t willing to cooperate in identifying volume sellers, it might become necessary to license everybody selling sizable quantities, the report continues. Waterson also brings up dynamic pricing as a possible solution to maximize attendance and, at the same time, get most out of customers willing to pay more.

As far as the primary market is concerned, Waterson recommends more transparency. He suggests that promoters list all authorized primary sellers as well as point out unauthorized sites. They should also be transparent about the “extent to which a ‘general sale’ is in fact a sale of the whole venue’s tickets. It is clear that in many cases, only a minority of tickets is actually available for purchase.” Last but not least, transparency should be extended to pricing and refund information. Waterson also suggests working closer with the secondary market, rather than excluding it from membership of industry bodies. This would facilitate coming up with a common standard for tickets to confirm their authenticity. He does not recommend a ban on the secondary market. For one, business would simply move underground.

What is more, many primary sites also operating a secondary offering suggest “their implicit approval of such activities.” It didn’t take long for the first industry reactions to arrive. “Professor Waterson exposes a dysfunctional and under-regulated ticketing market,” a joint statement by leading UK managers, agents and promoters reads. “His review calls on Government to enforce the law, and for secondary ticketing sites to apply the law and show responsibility. Fans must have clarity and fairness.”

The statement was signed by Adam Tudhope (Everybody’s Management), Alex Bruford (ATC Live), Annabella Coldrick (MMF), Brian Message, Craig Newman, Phil Middleton, Sumit Bothra and Ric Salmon (ATC Management), Emma Banks and Mike Greek (CAA), James Sandom (Red Light Management), Jeff Craft (X-ray Touring), Lucy Dickins (ITB), Neil Warnock and Geoff Meall (United Talent Agency), Paul Pacifico (Featured Artists Coalition), Paul Reed (AIF), Rob Challice (Coda), Rod Smallwood (Phantom Music Management), Sam Faulkner, (First Access Entertainment), Scott Rodger and Jay Barbour (Maverick UK) and others.

Referring to one particular solution Waterson raised, namely enforcing the provisions that are already stated in the Consumer Rights Acts, the joint statement reads: “More than 40,000 fans have already signed a petition demanding that Parliament enforce the Consumer Rights Act amendment brought in last year, providing tougher sanctions for resale websites that break the law. They also demand that ticket resellers are forced to reveal their identities.”

The signees agree that Waterson’s recommendations would help reform the market, if implemented. Another statement was released by trade organization STAR, which lists Skiddle.com, See Tickets, Last Second Tickets, Eventim UK and AXS among its members. STAR “believes the most effective way to achieve improvements is to extend its current Code of Practice to encompass resale.

All STAR members are of course required to abide by the law, but the proposed Code will go further, defining the very highest standards for the secondary market and ensuring only the most reputable resale platforms are able to join as Members.“ The organization’s chief executive, Jonathan Brown, added: “This is not about whether tickets should or shouldn’t be offered for resale or for how much they are sold. It is about pragmatically working to fill a gap in consumer protection by ensuring that customers are able to feel confident whenever they buy tickets and by improving standards even further in the legal ticket resale sector.”

Richard Davies, founder of online fan-to-fan ticket exchange Twickets, said: “It is now vital that the Government responds to ensure compliance with the Consumer Rights Act and that all relevant legislation is enforced. It must also be prepared to step in once more if self-governance measures fail.

“Ideally, we would like to have seen the report go further to protect fans. It acknowledges that profiteering prevents consumers securing a ticket, yet calls for evidence of manipulation before recommending a price-cap. The report further blames event organizers for creating the conditions for the secondary one, but doesn’t consider that they are seeking to make music, arts and sports events affordable.

“In our view the only way fans can be properly protected is through a blanket ban on resale for profit – as has been implemented in other markets around the world, and was successfully achieved for London 2012.”