CMA proposes new rules to crackdown on 'unscrupulous' ticket resellers
Ticket resellers like Viagogo and StubHub may be forced to shutter or be slapped with huge fines if they break consumer protection rules, under new proposals by the Competition and Markets Authority.
The Competition and Markets Authority hopes to stop "unscrupulous" touts taking advantage of fans as the live entertainment industry looks to recover from the Covid-19 pandemic and its associated restrictions, with the industry watchdog stating existing laws were too weak.
The CMA suggested rules that would make trading difficult for resellers, with platforms requiring licenses to operate and being put at risk of sanctions and losing their right to operate in the sector.
Resale sites will also be liable for resellers printing incorrect details on tickets under the new proposals.
The CMA's senior competition director George Lusty said: "While it is clear that concerns about the sector remain, there are limits to what the CMA and other enforcers can do with their current powers. If adopted, these proposals will help prevent people getting ripped off by unscrupulous resellers online and we stand ready to help the government to implement them."
Campaign group FanFair Alliance stated the proposals could have "far-reaching" benefits for fans.
However, FanFair spokesperson Adam Webb said the CMA should also be focussing on several alleged practices it already had the authority to act on.
"Over the course of the pandemic, FanFair Alliance has continued to send substantial evidence to the CMA detailing a range of serious and current allegations about Viagogo in particular," he said.