Scots officials consider prosecution of ticket touts over consumer law concerns

The development has come after a series of concerns about inflated prices of tickets appearing on secondary ticket websites soon after major events in Scotland.

Two years ago in what was then believed to be a first, the Lawn Tennis Association warned fans buying tickets resold by touts for the sell-out Davis Cup semi final featuring Andy Murray in Glasgow that they might be voided, after many complained that tickets were being swiftly resold for up to £1,399 each, over 14 times their original face value. There was concern then that fans would be unaware that the tickets were likely to become invalid.

And in February, the BBC told fans buying resold tickets for the BBC Radio 6 Music Festival in Glasgow featuring Depeche Mode and which were selling for up to 30 times their face value that they would be barred.

The touting came despite a warning from the BBC that tickets resold for profit or commercial gain by anyone other than nominated ticket agent, the Ticketmaster-owned Ticketweb would become void, a practice that has now become increasingly more common.

The CMA said ticket resale websites may be breaking consumer law by failing to give customers enough information about what they are buying and said it would widen the scope of its probe to include controversial sales tactics by sites which allow touts to resell seats at gigs by popular acts in return for a cut of the profit.

Both Trading Standards Scotland (TSS) and National Trading Standards (NSS) are investigating the practices of businesses that buy and sell tickets in bulk.

Fiona Richardson, chief officer for TSS said: "We are looking at potential offences under consumer protection from unfair trading regulations. So these would possibly occur where resellers acting in the course of a business do not provide consumers with sufficient information or mislead them.

“Whilst there is undoubtedly a role for the secondary ticket market, a small number of individuals unfortunately appear to be distorting the market, leading to confusion over the details or validity of tickets and in many cases driving prices up to levels that are unaffordable for many. We will continue to highlight what consumers should be aware of, in order to ensure they are able to make an informed decision.

"We are still in the initial stages of our investigations, however we are committed to working with the CMA in order to take action against those who are breaking the law, to ensure the best outcomes possible for consumers."

She urged anyone concerned about a ticket they have purchased to contact the Citizen Advice Consumer Helpline.

The CMA said it would raise concerns with “a number” of websites to ensure consumers are clearly told information such as where they will be seated in a venue, who they are buying from, and whether restrictions on resold tickets could mean they are refused access to events.

The CMA said some sites have already made changes since it opened its investigation 12 months ago, but said it would take action against one unnamed website which could be fined for failing to comply with an earlier demand that it provide more information to buyers about their tickets.

“We are putting our concerns to these websites and will be requiring the changes necessary to tackle them,” said the CMA’s chief executive, Andrea Coscelli.

“We will use the full range of our powers to get the right outcome for these sites’ customers – including taking action through the courts if needed."

Trisha McAuley, an independent Scots consumer expert, and former senior director for Scotland for UK-wide national consumer organisation, Consumer Futures said this is the "welcome first sign of a pro-active approach in an area of real consumer detriment – affecting very many people and with significant financial consequences". She added: "Basically, consumers do have rights under law to be treated fairly so this is a long overdue but very welcome development and one would hope that the CMA continues to move quickly to restore consumer confidence.

Investigations were launched amid growing pressure from the music industry and fans to address concerns about ticket resale, an industry dominated by Ticketmaster firms Seatwave and Get Me In!, eBay’s StubHub and Viagogo.

At the 6 Music festival in Glasgow tickets for Depeche Mode who played the 2,100-capacity Glasgow Barrowland were sold out in minutes with £30 briefs immediately becoming available on the Viagogo ticketing resale site and selling for up to £879 each.

But the BBC warning about resold tickets becoming void led to a row as the public corporation was bombarded with complaints with fans saying that the corporation had allowed them to be exploited through their handling of ticket sales and one describing it as "the real rock 'n'roll swindle".

Viagogo at the time took a 12 per cent cut from the seller, then added around 15 per cent of the full sale price plus VAT as a service fee.

For a resold £879 Depeche Mode ticket - the seller would make £770, Viagogo would take £405 including VAT and the buyer would pay around £1175 in total. The seller of these tickets is not known, as Viagogo protects their identities.

A new investigation by consumer watchdog Which? in July found tickets appearing on secondary ticket websites as soon as any major event goes on sale is still the norm despite parliamentary and industry efforts to clean things up.

In November, key people from StubHub and Ticketmaster faced an inquisition from MPs on the culture, media and sport select committee, who have been looking into allegations that touts use underhand methods to secure tickets at the expense of fans.

A StubHub spokesman said following the latest development: “StubHub remains committed to working with UK regulators to ensure that consumers continue to have access to a safe, secure and transparent ticket resale service. As the CMA investigation is ongoing, we await the final outcome.”

A Ticketmaster spokesman added: “It is great to see that the CMA is taking this much-needed step to enforce the law in the UK resale market. We have been working closely with the CMA to ensure that we are compliant with consumer law, offering unparalleled transparency to fans when purchasing tickets.”