Thousands of fans who paid over the odds for sold out gigs last year are likely to be keeping an eye on the news that some of the resale companies are now under investigation.
The companies being probed by the Competition and Markets Authority (CMA) are StubHub, Viagogo, AA Driving School, BSM Driving School, Gold’s Gym, Wayfair, Appliances Direct and Marks Electrical.
A number of high profile artists hit the stage last year, and sold out within hours of going on legitimate sale, from Beyonce, to Oasis and Taylor Swift.
Tickets sold out rapidly, which led to desperate fans trying resale sites, which allowed customers to place tickets for as much as they wanted.
But if you paid over the odds, could you now be in line for some compensation?
An investigation has been launched that will look into the practise of these reselling sites, and how they go about their business.
StubHub and Viagogo are being investigated for “mandatory additional charges” applied when consumers buy tickets.
CMA chief executive Sarah Cardell said: “At a time when household budgets are under constant pressure and we’re all hunting for the best deal possible, it’s crucial that people are able to shop online with confidence, knowing that the price they see is the price they’ll pay, and any sales are genuine.”
The move comes after a major review was launched back in April, which examined more than 400 businesses from different sectors to assess whether their behaviour on price transparency met current standards
The UK Government have also pledged to crackdown on the unfair practice with a new set of laws, set to be announced imminently.
Ministers had been originally considering allowing companies and ordinary consumers to sell on a ticket for up to 30 per cent above the original face value but it is now thought that reselling a ticket at anything more than the original face value will be banned.
It comes after dozens of world-renowned artists – including Radiohead, Dua Lipa and Coldplay – issued a plea to Keir Starmer to deliver on Labour’s general election manifesto pledge by stopping “pernicious” touts.
The UK Government said: “Resale platforms play a prominent role in the UK secondary ticketing market by facilitating ticket sales between resellers and buyers. In 2019, it was estimated that around 1.9 million tickets were sold across online secondary platforms, with a value of around £350 million.
Could I be due compensation?
The CMA announced it will be writing to 100 businesses, including the resale sites, to express concerns about their use of additional fees and sales tactics.
High pressure sales techniques it has examined include practices drip pricing, pressure selling, and misleading countdown clocks
Under the Digital Markets, Competition and Consumers Act the CMA can now decide itself if consumer laws have been broken rather than having to go through the courts.
If it is deemed after the investigation that these resale sites acted improperly, the CMA can order businesses to pay compensation to affected customers, and fine companies up to 10% of global turnover.
The investigation into potential wrongdoing is ongoing, and if the companies are found to have acted improperly, the CMA will make the findings public.
This is the first investigation of tis kind, and although the CMA have powers to order refunds and compensation, it is not yet known how the scheme will work.
Customers will need other keep an eye on the CMA findings, who will likely give advice on the next steps.
