Ticket Resale: Ontario Scraps Price Cap, EU Bot Ban Moves Forward

Ken Hively/Los Angeles Times via Getty Images – Ticket Resale
Moves have been made around the world to curb the resale of tickets

The Progressive Conservative government in Ontario, Canada, has scrapped the part of the Ticket Sales Act capping the resale price of tickets.

The particular subsection on price caps had already been pushed back when the current government took office last year. Now, it has been scrapped entirely.

“It was unenforceable,” government and consumer services minister Bill Walker is quoted on globalnews.ca, and, referring to the previous government, he added, “It was like a lot of things with the Liberals. It was a nice soundbite, but there was no enforcement.” 

According to the news report, the new budget, which contains the change of law, also removes a requirement for secondary ticket sellers to disclose their name, location and contact information, “as long as they have made a guarantee in writing that a full refund will be provided if the event is cancelled, if the ticket is counterfeit, or if it doesn’t actually allow the buyer to attend the event.”

The bot ban, which is also part of the Ticket Sales Act, remains intact. Fines for non-compliance with the act were increased from CAD 10,000 to CAD 25,000.

– FEAT
The Face-value European Alliance For Ticketing Launched At Eurosonic Noorderslag 2019

Meanwhile in Europe, members of the EU Parliament have voted to outlaw the use of specialised software, i.e. bots, to circumvent the maximum buying limit on ticket purchases and any other rules applicable for purchase. 

The vote also requires resellers to declare if they are professional traders.

As is the case with new EU laws, they have to be implemented by the EU member states next. Proponents believe the legislative basis created by the EU will allow for more stringent provisions at national level, such as a complete ban on resale for profit. 

The UK, for instance, has already introduced legislation preventing the use of bots for ticket harvesting, still, the EU Parliament vote will strengthen the hand of national bodies like the Competition and Markets Authority and Advertising Standards Authority.

Once implemented in the UK, the ruling will be applicable through the two-year Brexit transition period and form part of the UK’s incumbent laws on consumer rights. 

Instrumental in bringing the secondary ticketing issue to the attention of EU Parliamentarians was the Face-value European Alliance for Ticketing (FEAT). 

Sam Shemtob and Katie O’Leary of FEAT commented: “We welcome the move to curb the use of bots in this first Europe-wide anti-touting law. As well as requiring professional sellers to identify themselves, it also enables member states to go further and potentially regulate the resale price of tickets.  

“Most importantly, this represents the first step in harmonising regulation across Europe. This approach is critical as secondary ticketing companies tend to exploit regulatory gaps between countries. There is still much to be done and we will be campaigning for tougher legislation in the next parliamentary term.” 

Daniel Dalton UK MEP and rapporteur of the revised Unfair Commercial Practices Directive, in which the new legislation is captured, said: 

“Everyone apart from touts loses out from bot bulk-buying of tickets. Real fans are either unable to see their favourite team or artist or are forced to pay many times the face value price, whilst event organisers are seeing their purchasing limits flagrantly violated. So this first ban at a European level is an important first step, with the possibility to go further in future depending on how the ban works in practice.”

 

Sharon Hodgson MP, Member of Parliament for Washington and Sunderland West and Chair of the APPG on Ticket Abuse said: “It is welcome that the EU Parliament have today voted to ban bots, which harvest tickets from the primary market in order to sell for high profits on the secondary market. This new regulation harmonises Europe with existing UK law on bots, and also allows member states to strengthen existing legislation, which will protect consumers. Fans across the world must not be priced out by the secondary ticket market using parasitical methods to get tickets.”

 

Per Kviman and Virpi Imonnen at the European Music Managers Alliance (EMMA) said: “This is a positive step. The EU Parliament has recognised the growing public concern about consumer exploitation in the secondary ticketing market. However, the banning of “bots” is one small piece of the jigsaw. Tackling this issue requires a more comprehensive approach, and we hope there is potential to build upon this move.” 

Dr. Johannes Ulbricht, lawyer for German Music Promoters Association BDKV added: “BDKV supports the initiative of FEAT, which is definitely a step into the right direction.”