Enforcement investigation launched in the secondary ticketing sector
First published by Admin on December 30, 2016 in the following categories: Latest and tagged with cma
The Office of Fair Trading (the U.K.’s former competition watchdog) launched an investigation into the secondary ticketing market back in 2012. As a result of the investigation, four secondary ticket sellers gave undertakings to the current competition watchdog, the Competition and Markets Authority (CMA).
Now, the CMA has recently launched an enforcement investigation to see whether the sector are complying with consumer protection laws.
Initial investigation – 2015
Back in March 2015 the CMA sent out an open letter to the secondary ticket industry following an undertaking from four of the secondary ticket sellers that were at the centre of the initial investigation: GET ME IN!, Seatwave, StubHub and viagogo. The letter set out what the CMA expects from the sector in question, reminding them of the obligations they owe to buyers under consumer laws. The letter didn’t come to the conclusion that the companies were in breach of any laws, but instead served as a reminder for the companies to comply with their legal obligations.
The CMA’s expectations
The CMA expects secondary ticket sellers to:
- Provide information about the face value of the ticket;
- Only list multiple tickets in a single listing if they’re located together;
- Provide buyers with importance information about restrictions on entry or view applicable to a ticket. This could include: age restrictions, view of the stage etc;
- Inform buyers that they’re a trader and provide details, including identity and address, to buyers.
The CMA’s concern
The CMA’s Acting CEO, Andrea Coscelli, highlighted the importance of transparency in the secondary ticketing industry, noting that a concert, gig, or big match is an event that millions of people eagerly anticipate, meaning it’s crucial that they know what they’re buying, and what restrictions may apply.
The CMA are concerned that companies in that industry aren’t providing this crucial information, and as a result of this concern, the CMA has launched a ‘sector-wide investigation’. Essentially, the investigation is to make sure that customers know what they’re buying into.
Enforcement investigation – 2016
The enforcement investigation is in view that the companies may have breached consumer protection laws by not providing buyers with full details of the ticket they’re purchasing.
The investigation will look into whether the companies have provided who the seller is and if they’re connected with the event organisers; any restrictions on the resold tickets which could lead to a person being denied access to the event; and where a seat is located in the venue.
New legal protection
Since the investigation opened back in 2012, there are new legal obligations on secondary ticketing companies, such as the Consumer Contracts Regulations 2013, and the Consumer Rights Act (CRA) 2015. The CRA means greater protection for buyers as the law is set out with the aim of being clearer and easier to understand for everyday buyers like you and I. In the event of a problem, the CRA sets out remedies for consumers from sections 19 to 24 in relation to purchased goods.
If the CMA finds non-compliance of consumer laws, they can take enforcement action against the secondary ticketing companies.