Britain’s biggest banks have risked angering music fans by voicing opposition to government plans to cap ticket resale prices, claiming that the move could lead to more scams.
UK Finance, which represents 300 financial services outfits including Lloyds, NatWest, HSBC and Barclays, has warned that limiting second-hand ticket prices would probably drive “tout activity” away from platforms such as Viagogo, and towards social media sites like Facebook Marketplace, where fans would have fewer protections.
• Ticket resale price cap to stop music fans being ripped off
The banks are taking issue with the cap because, while Viagogo pledges to refund fans for fake tickets bought on its platform, there are fewer guarantees on social media and so defrauded fans can ask for a refund from their bank instead, under Payment Systems Regulator rules.
Their opposition to the government’s proposals risks riling music fans who resent the prevalence of second-hand ticket markets. Recently, fans of Ariana Grande were frustrated when standing tickets for her O2 shows in London, originally priced at £115, started showing up on resale sites for £400 or more.
Ministers announced plans to limit ticket resale prices earlier this year, following pledges made by Sir Keir Starmer before he was elected prime minister last year. Launching a consultation in January, the government indicated it was considering a range of caps between 0 and 30 per cent above the original face value. This would mean that a ticket bought for £100, for example, could be sold on for up to £130.
• The bad economics of the government’s war on ticket touts
Any restriction would threaten the business models of Viagogo, StubHub and other secondary ticket marketplaces. These platforms were originally set up with the promise of allowing fans to sell tickets that they could no longer use themselves, but they have become associated with professional online touts and eye-popping prices.
Viagogo has been lobbying against the plans, which also include a proposal to limit the number of tickets that individual resellers can put up for sale. And now the company, owned by StubHub, which listed in the US last month, has found an ally in the UK banking lobby.
Viagogo has found an ally in the banking industry
ALAMY
In its submission to the government, UK Finance cited research by lobbying firm Bradshaw Advisory showing that price caps in Ireland and Australia had “failed to protect consumers or lead to good consumer outcomes”. That research was commissioned by StubHub International, a separate entity to the north American StubHub, and is hotly disputed by proponents of a cap.
Adam Webb, the FanFair Alliance’s campaign manager, described the Bradshaw research as “misguided” and said: “I would advise UK Finance actually speak to experts in those countries, rather than rely on the self-interested research of unregulated offshore websites who promote industrial-scale ticket touting and exploit British audiences.”
UK Finance said: “Any increase in fraud and scams as a result of an introduction of price caps and a migration of tout activity to unregulated online marketplaces will expose consumers to not only the financial burden of being a victim of fraud, but also the emotional harm of being defrauded.”
The organisation said that if a cap was introduced the government should consider imposing new rules on social media, including “validation checks for ticket sales” and an order for them to “include prevalent messaging that ticket sales are prohibited on their sites due to the high risk nature”.
A government spokesperson said: “We are committed to clamping down on touts, and through our Plan for Change, we will go further to put fans back at the heart of live events. We are considering the evidence provided in response to our consultation earlier this year, and will set out our plans soon.”