Sales of tickets on platforms such as Viagogo and StubHub should be subject to tighter rules, the competition watchdog is proposing.

As live events such as music festivals and large sporting events resume over the coming months, the Competition and Markets Authority (CMA) has set out recommended changes to the law and existing system of regulation to protect consumers.

The CMA’s full report, setting out further details, is being published on its website on Monday.

Its recommendations include a ban on platforms allowing resellers to sell more tickets for an event than they can legally buy from the primary market.

The CMA also wants to ensure platforms are fully responsible for incorrect information about tickets that are listed for sale on their websites.

There would also be a new system of licensing for platforms selling secondary tickets that would enable an authority to act quickly and issue sanctions such as taking down websites, withdrawing a business’s right to operate in the sector, and the imposition of substantial fines.

While the bulk-buying of tickets ahead of real fans by professional resellers – who then sell them at inflated prices – may be illegal, swift and effective action by authorities is not possible under the current law, the regulator said.

Similar issues arise in relation to laws which prevent resellers advertising tickets using incorrect information, or speculatively selling tickets that they do not own, the CMA added.

The CMA has previously taken action against secondary ticketing websites to tackle non-compliance in the sector, including the failure to provide important and accurate information to consumers.

Its moves have included requiring Viagogo and StubHub to remove misleading messaging about ticket availability and to tell customers where the tickets they buy might lead to them being turned away at the door.

Ticket resaleGeorge Lusty, of the CMA, said secondary ticket websites are now worlds apart from those seen before the watchdog took action (Competition and Markets Authority/PA)

George Lusty, senior director for consumer protection at the CMA, said: “Over recent years we have taken strong action to protect people buying tickets from resellers online, and the secondary ticket websites are now worlds apart from those we saw before the CMA took action.

“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.

“With live music and sporting events starting back up, we want the Government to take action to strengthen the current laws and introduce a licensing regime for secondary ticketing platforms.

“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.”

Adam French, Which? consumer rights expert, said: “Which? has repeatedly exposed rogue secondary ticket operators reselling tickets at extortionate prices without providing clear information or warning about the risk that people could be turned away at the door.

“It’s positive to see the Competition and Markets Authority (CMA) pushing for changes that should offer all ticket buyers much stronger protections.

“The Government should implement these recommendations as soon as possible and push forward with plans to give the CMA much stronger powers to enforce consumer law.”

A Viagogo spokesperson said: “The CMA’s report into Secondary Ticketing offers an interesting insight into the effectiveness of current regulation. We welcome the exposure this gives to the strength of viagogo’s customer protections and the recognition of the importance regulated platforms play in ensuring customer confidence when accessing live events.

"The CMA notes their report is not as a result of customer complaints and moreover, that a ban on secondary platforms would lead to an explosion in black market sources for tickets.

"We have argued strongly that the U.K. should grasp the opportunity of the COVID-19 recovery to improve the events industry and strengthen market collaboration between all players including event organisers, venues, primary and resale platforms.

"We are open to all ideas as to how that is achieved, but it must be carefully considered and focused on improving the industry’s service for customers. There is a need to address the failings of the primary market and we need to explore the risks of new and unregulated online resale channels.”