Battle against online scalpers intensifies in Australia, UK

The battle against online scalpers is heating up in Australia and the United Kingdom.

The decade-long issue has increasingly aroused the wrath of the live music industry and consumer protection organisations in both countries.

In the latest moves, consumer watch organisation Choice has referred its latest report to the Australian Competition and Consumer Commission (ACCC).

It named Viagogo and Ticketmaster Resale as leading offenders who need to “clean up their acts.” Choice is hoping that it will lead to fines, action on a nationwide basis, and ultimately, changes in market practises.

The Choice report, published March 8, said third party sellers were inflating prices by up to 500%. It also dismissed the country’s current consumer laws as inconsistent and ineffective.

In the UK, the Government has revealed plans to introduce unlimited fines for online scalpers.

A change to the Digital Economy Bill will allow for “touts” (as they are referred to in the UK) to use “bots” (computer software) to bypass the maximum amount of tickets that can be bought by one person. Scalpers who break the law will face unlimited fines.

The resale market in the UK is worth £1 billion, according to Fan Alliance, set up by a wide cross section of music industry representatives exclusively to fight scalpers.

Australia’s anti-scalping legislation varies from state-to-state.

South Australia has a maximum fine of $5,000 for a seller. In Queensland, where the protection is mostly for Stadium Queensland venue patrons, the buyer is also up for a $609 fine.

The practice is banned in NSW but only in certain areas such as the Sydney Cricket Ground, Allianz Stadium and Sydney Olympic Park precinct.

Victoria’s approach is resold tickets more lenient, however. Tickets cannot be sold at more than face value but only for signified “major” sporting events.

The Choice report included anecdotes such as an international student who bought a $330 ticket for Coldplay’s Melbourne Etihad Stadium show last December. He was emailed a PDF ticket which came with someone else’s name on it and instructions to present the barcode at the gate. He was refused entry and had to pay $149 for a new ticket.

More than 400 people were turned away at the Australian Open tennis tournament this year because they held invalid tickets. In January, over 50 were refused entry to a UB40 show in Fremantle.

Promoters Michael Chugg and Michael Gudinski have been highly vocal over the past 12 months urging the Australian Federal Government to take action against inflated ticket prices. The pair have also pressed state Governments to be consistent with their penalties and to expand their protection to music fans and not just sporting event consumers.

This summer’s tours by four international superstar acts – Adele, Bruce Springsteen & The E-Street Band, Guns N’ Roses and Justin Bieber – has seen anger swell at scalper demands.

Tickets for Bieber’s stadium show in Brisbane were being illegally sold for $1,150 – a 514% increase on their original $187.15 pricetag.

Furthermore, Adele’s shows in Brisbane saw $309 A Reserve seats offered for $1044, while B Reserve seats of $207 were going for $470.

Midnight Oil’s 2017 The Great Circle tour, which sold out its eight Australian shows instantly, has seen online sites demanding almost $1000 for $60 and $150 tickets.

According to the ABC, Frontier Touring is also preparing a report for the ACCC.

Last week, speaking to triple j Hack, Chugg said authorities needed to act. “it’s disgusting. This is just out of control now.”

A statement from Ticketmaster Australasia, which owns TIcketmaster Resale, insisted the company operates a safe and secure marketplace and is continually reviewing its practises and platforms.

In the UK, the banning of the bots was received with applause from the music industry.

Last month, Viagogo was accused of “moral repugnance” for selling tickets to an Ed Sheeran Teenage Cancer Trust gig for up to £5,000 (AU$8059.15).

An £85 ($137) ticket to see Adele at the O2 in London last year was reportedly being sold for £24,840 ($40,037. 95).

Jo Dipple, CEO of industry group UK Music said, “Massive profit is made by people who are taking value out of the music industry and putting tickets out of the reach of music fans.

“Banning bots is a step towards ensuring the ticketing market for live events works more fairly for gig-goers.”

Minister of State for Digital and Culture, Matt Hancock, added it was “unacceptable for scalpers to misuse technology to get tickets they could sell-on at riff-off prices.

“It’s a growing problem that affects too many people,” he emphasised.

Last year, New York criminalised their use after one bought 1000 tickets in one minute to a U2 concert at Madison Square Gardens.

To access the full Choice report, click here.