Banks warn government not to cap resale prices of gig tickets

"Britain's leading banks have warned the government against capping the resale prices of concert and event tickets, claiming the move would push ticket touts and fraudulent sellers onto unregulated social media platforms. In a submission to ministers, UK Finance, the trade body representing Lloyds, NatWest, HSBC, Barclays and more than 300 other financial institutions, said proposed ticket price caps could backfire by driving "tout activity" away from regulated platforms such as Viagogo and towards sites like Facebook Marketplace, where fans are more exposed to scams."

"The warning comes as the government prepares to decide whether to introduce a cap on second-hand ticket prices - a flagship Labour pledge first made by Sir Keir Starmer before last year's general election. A consultation launched in January proposed several options, including limiting resale prices to between 0% and 30% above face value. That would mean a ticket originally priced at £100 could be resold for no more than £130."

"However, critics, including banks and secondary marketplaces, warn that the policy risks unintended consequences that could harm consumers and legitimate resellers alike. The proposed cap threatens the business models of Viagogo, StubHub, and other ticket resale platforms that profit from commissions on second-hand sales. These companies were originally designed to allow fans to resell unwanted tickets but have since faced criticism for facilitating large-scal"

Banks warned government that capping resale ticket prices could push touts and fraudulent sellers onto unregulated social media platforms. UK Finance, representing major banks and over 300 financial institutions, argued price caps could drive "tout activity" away from regulated marketplaces like Viagogo toward sites such as Facebook Marketplace, increasing exposure to scams. Regulated resale platforms offer buyer guarantees and refund policies, while informal online marketplaces typically do not, leaving victims to claim compensation from banks under consumer protection rules. The government consultation includes options limiting resale prices to between 0% and 30% above face value, prompting debate over consumer protection and market effects.

Read at Business Matters