Mike FletcherA price cap on secondary ticketing moved a step closer this week when the Competition & Markets Authority (CMA) published its response to the Government’s proposals.
A consultation runs until 4 April to understand the extent of any price cap – from zero to 30% of the ticket face-value. Both O2 and Ticketmaster have indicated that they favour a cap at the lower end of the scale.
Competition watchdog, the CMA has now said it would also support a ceiling on secondary ticket prices.
The CMA said in its consultation response that a cap would “protect consumers from excessive resale pricing,” as long as it was properly enforced. It stated the Government would have to take strict action against those who break the rules, including by selling tickets on social media, where consumer guarantees are unlikely to be in place.
It also warned of the danger that resale sites would simply increase booking fees to compensate for lost profits, saying measures to stop this would have to be written into any new law.
“If the risks are not managed, it could undermine the policy intention of a price cap to protect consumers from paying significantly inflated prices for resold tickets,” the CMA response read.
A price cap of up to 10% above face value was among Labour’s 2024 election manifesto pledges