The NSW Government Is Cracking Down On Ticket Scalpers, But Is It Enough?
About time.
The NSW Government has announced a suite of reforms designed to stop ticket scalpers at major sporting and music events, including a proposal to outlaw the use of bots that purchase a large number of tickets in bulk.
The NSW Government’s proposed reforms include amendments to the Fair Trading Act 1987 that would make it illegal for resellers to sell tickets to events in NSW for more than the original sale price, plus transaction costs that would be capped at 10 percent of the ticket price.
The new laws will also make it illegal to advertise tickets that breach the new resale regulations, and the government will now have the power to force event organisers to publicise the number of tickets they’re selling.
“These reforms are about making tickets more accessible to the real fans that deserve to be able to enjoy their favourite sport or artist at a live event,” the minister for better regulation, Matt Kean, said in a statement.
“The reforms also aim make it clear that tickets resold within the new laws should not be cancelled by event organisers or venues simply because the ticket has been acquired in the secondary market,” he said.
The government will also outlaw the use of bots to purchase tickets in large quantities, but it’s unclear how that law will be enforced.
Ticket scalpers have been the bane of the entertainment industry for years, but there have been increased calls to crack down on businesses and individuals that purchase tickets for the explicit purpose of re-selling them at marked up prices in recent weeks.
Last month the Australian Consumer and Competition Commission launched a Federal Court action against Viagogo, a popular online ticket reseller, alleging it had made false or misleading representations. The ACCC said it had received 473 complaints about Viagogo this year, including complaints that the company had marked up the cost of tickets by more than 30 percent.
The consumer advocacy organisation CHOICE has welcomed the reforms but called for further action.
“The resale industry is in utter shambles and these reforms are the first step to cleaning up the market for NSW consumers,” said CHOICE head of media, Tom Godfrey.
“While the government is making a serious effort to stop fans getting ripped off, one of the world’s dodgiest resellers Viagogo may remain untouched because it’s based overseas.”
The organisation is calling on promoters, venues and ticketing companies to take their own steps to ensure ticket are sold to “genuine fans” rather than professional scalpers. CHOICE also wants to ensure that punters who buy resold tickets aren’t left high and dry if their tickets are cancelled by promoters or venues.
“Over 75 percent of the case studies who contacted CHOICE did not even know they were purchasing a resold ticket,” Godfrey said. “They’ve bought their ticket in good faith with their hard earned cash. Cancelling these tickets at the gate would punish consumers, leaving them hundreds, if not thousands, of dollars out of pocket – while the ticketing companies and resale websites cash in.”
The new laws are currently being drafted by the government.
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Feature image via Esther Dyson/Flickr