Secondary Ticketing and Marketplace Liability: EU and National Laws Explained

Secondary ticketing and marketplace liability have become crucial topics in the global conversation surrounding ticket sales, particularly in the European Union (EU). The rise of online platforms where tickets are resold has brought into question the fairness, transparency, and legality of such transactions. As a result, lawmakers in various jurisdictions have sought to address these concerns through both EU-wide and national regulations. Understanding secondary ticketing and marketplace liability is essential for consumers, event organizers, and businesses involved in ticket resale.

In this article, we will explore the laws governing secondary ticketing, focusing on both EU regulations and individual national legislations. We will analyze the responsibilities of online marketplaces and the liabilities they face in relation to the resale of event tickets.

The Rise of Secondary Ticketing

Secondary ticketing refers to the resale of tickets, often for popular events such as concerts, sports, and theatre performances, by individuals or businesses other than the original seller or event organizer. While secondary ticketing allows consumers to find tickets they may not have been able to purchase initially, it has also raised numerous concerns.

One of the main issues with secondary ticketing is the practice of price inflation. Scalpers and resellers often sell tickets at prices far above their face value, leading to accusations of market manipulation and consumer exploitation. To combat these issues, regulators have started implementing laws that address both the act of secondary ticketing and the platforms facilitating these resales.

Legal Framework for Secondary Ticketing in the EU

EU Consumer Protection Law

The European Union has long been at the forefront of consumer protection, and this extends to the regulation of secondary ticketing. In 2019, the European Commission took steps to standardize rules on ticket resale across the EU with the adoption of the Consumer Protection Cooperation (CPC) Network, which aims to tackle unfair commercial practices in the secondary ticketing market.

According to EU law, secondary ticketing platforms must comply with strict consumer protection requirements. For example, sellers are required to disclose clear and accurate information about the tickets being sold, including their price, seating location, and the original face value. These rules ensure that consumers are not misled and are able to make informed decisions.

Additionally, EU law mandates that tickets can only be resold at a price above their face value if the event organizer explicitly permits it. Without such permission, reselling tickets at inflated prices is illegal in some EU member states. The issue of price capping is central to the legal debates surrounding secondary ticketing, as various countries have differing stances on whether or not it is acceptable.

EU Digital Services Act and Marketplace Liability

The EU’s Digital Services Act (DSA), which came into force in 2022, provides a comprehensive legal framework for online platforms, including secondary ticketing marketplaces. Under the DSA, digital platforms are required to take responsibility for content and transactions that take place on their services. This includes ensuring that illegal goods and services, such as the unlawful resale of tickets, are not sold on their platforms.

The DSA mandates that secondary ticketing marketplaces implement measures to prevent the sale of counterfeit tickets and enforce rules regarding transparent pricing. These platforms must also cooperate with law enforcement agencies and provide necessary information when requested. Marketplace liability is thus a key aspect of secondary ticketing regulations in the EU.

EU Regulation on the Sale of Tickets

In addition to the CPC Network, the EU has introduced specific regulations aimed at addressing secondary ticketing practices. Regulation (EU) No 2017/2394 on cross-border consumer protection rules addresses the resale of event tickets across borders within the EU. This regulation establishes mechanisms for monitoring ticket sales, enforcing consumer rights, and tackling illegal practices in the secondary ticketing market.

Member states are encouraged to adopt national measures that align with EU regulations while considering the specific needs and challenges of their local markets. As such, national authorities have been given significant discretion to enforce laws related to secondary ticketing and marketplace liability within their own jurisdictions.

National Laws and Regulations on Secondary Ticketing

While the EU provides a broad legal framework, individual countries within the union have implemented additional laws to tackle the issues of secondary ticketing and marketplace liability. These national regulations often go beyond the EU’s minimum requirements, reflecting each country’s priorities and concerns.

United Kingdom

The UK has some of the strictest regulations on secondary ticketing in Europe. The Consumer Rights Act 2015 requires all resold tickets to include the original price and a description of the ticket’s features. Moreover, the resale of tickets above face value is banned for most events, except in cases where it is expressly allowed by the event organizer.

The UK also introduced specific rules regarding the role of online platforms in ticket resale. Online marketplaces must ensure that resold tickets meet all necessary legal requirements, including transparency about pricing and availability. Failure to comply can lead to fines or even the removal of a marketplace’s operating license.

France

France has been a pioneer in tackling the problem of secondary ticketing. The Loi de 2012, also known as the “Law for the Protection of the Consumer,” strictly regulates the resale of event tickets. Under this law, tickets can only be resold through authorized platforms that have received approval from event organizers. Furthermore, the law stipulates that the resale price of a ticket cannot exceed its original price by more than 10%.

In addition, France has set up a ticket verification system to prevent fraud and ensure that tickets sold on secondary marketplaces are legitimate. This initiative is part of the country’s broader efforts to combat ticket touting and ensure fair access to events.

Spain

Spain has a somewhat different approach to secondary ticketing. While the country does not have a blanket ban on the resale of tickets, it requires that tickets sold above face value must be authorized by the event organizer. Furthermore, the Ley General para la Defensa de los Consumidores y Usuarios (General Law for the Defense of Consumers and Users) mandates that all secondary ticketing platforms provide clear and accurate information about the tickets being resold, including the price and the original seller.

In Spain, marketplace liability is also a concern, and platforms must ensure that resellers do not engage in fraudulent activities. Platforms are legally obligated to take action against illegal resales and report suspicious activities to authorities.

Germany

Germany’s regulations surrounding secondary ticketing are also strict, particularly when it comes to consumer protection. The Ticket Law (Ticketgesetz), which came into effect in 2016, sets out clear rules for the resale of event tickets. Resale for profit is generally prohibited, except when authorized by the event organizer. Tickets can only be resold through official channels, and any resale at inflated prices is illegal.

German law also imposes significant fines on platforms that allow the resale of tickets without proper authorization or fail to ensure transparency in pricing and seller information.

Challenges and Controversies

Price Inflation

One of the most contentious issues surrounding secondary ticketing is the practice of price inflation. Critics argue that secondary ticketing platforms enable scalpers to purchase tickets in bulk and resell them at prices far higher than their original value. This practice leads to frustration for genuine fans, who are often unable to afford tickets for high-demand events.

While several countries have introduced laws to curb price inflation, the effectiveness of these measures has been questioned. Some argue that price capping can be difficult to enforce, particularly when tickets are resold across borders on global platforms.

Counterfeit Tickets

Another major challenge is the sale of counterfeit tickets through secondary marketplaces. Despite efforts to regulate ticket resale, fake tickets continue to circulate, causing significant financial and emotional harm to consumers. As such, marketplace liability in ensuring ticket authenticity is a key area of concern.

International Variability

The lack of harmonization in secondary ticketing laws across the EU presents its own set of challenges. While the EU has attempted to create a uniform legal framework, the variability of national laws means that enforcement can be inconsistent. Some countries have stricter regulations, while others have more lenient approaches, creating a fragmented legal landscape for both consumers and marketplaces.

Závěr

Secondary ticketing and marketplace liability are complex issues that involve a delicate balance between consumer protection, market regulation, and the interests of event organizers and ticket resellers. While the EU has taken significant steps to regulate the secondary ticketing market, national laws vary widely, reflecting the unique challenges and priorities of each member state.

As secondary ticketing continues to grow, both online platforms and lawmakers will need to remain vigilant to ensure that consumers are protected from unfair practices, such as price gouging and fraud. In the future, we may see more harmonized regulations across the EU and a more standardized approach to marketplace liability. Until then, understanding the legal landscape is crucial for anyone involved in or affected by secondary ticketing.