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Sale of Tickets Bill 2021

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Sale of Tickets Bill 2021 Regulatory Impact Analysis Sale of Tickets (Cultural, Entertainment, Recreational and Sporting Events) Bill 2021 Table of Contents 1 Summary of RIA 3 2 Policy context 7 3 Legal context and background to Bill 121 4 Public consultation and pre-legislative scrutiny 20 5 Policy objectives of Bill 22 6 Policy options: costs, benefits and impacts 27 7 Enforcement and compliance 33 8 Review mechanism 34 9 Publication 34 —— 2 1 Summary of RIA Summary of Regulatory Impact Analysis (RIA) Department/Office: Department of Title of Legislation: Sale of Tickets Enterprise, Trade and Employment (Cultural, Entertainment, Recreational and Sporting Events) Bill 2021 Stage: Text of Bill Date: April 2021 Related Publications: https://enterprise.gov.ie/en/Consultations/Consultation-Resale-of- Tickets-Entertainment-Sporting-Events.html Available to view or download at: www.oireachtas.ie/en/bills Policy Objectives The Bill seeks to promote fairer access to event tickets by prohibiting the sale, or advertising for sale, for a price exceeding the original sale price of tickets for events in designated venues or for designated events. It sets out the conditions and procedures that will apply to the designation of venues and events, the refusal of applications for designation and the revocation of designations. The Bill specifies the information that must be provided when tickets for events in designated venues or for designated events are sold, or advertised for sale, by primary ticket sellers or are sold, or offered for sale, by secondary ticket sellers. It further prohibits the unauthorised sale of tickets for matches and official events during EURO 2020 in line with a commitment given by Government to UEFA as part of the bid for staging a number of matches in the tournament in Dublin. The Bill would also render void contract terms that exclude or limit the transfer of event tickets for no monetary consideration or their sale for a price not exceeding the original sale price unless such exclusions or limitations apply on the grounds of safety, public health or public order. Policy Options 1. No Policy Change 2. Introduction of Legislation Preferred Option: Introduction of legislation. —— 3 OPTIONS No policy change COSTS BENEFITS IMPACTS Fair access to tickets for high- Secondary ticket sellers The Government would not demand sporting and could continue to resell fulfil its commitment to entertainment events would tickets for high-demand UEFA to prohibit the continue to be undermined by events at the highest price unauthorised sale of tickets the resale at a price above the obtainable. The revenues of for matches and official original sale price of sizeable secondary ticket events during the EURO numbers of tickets for these marketplaces whose fees for 2020 tournament. This could events on secondary ticket ticket sellers and buyers are have an adverse effect on markets. Such resale could set as a percentage of the the credibility of Government reach higher levels than in the resale price of tickets would commitments for future past if attendance at events is be unaffected. international sporting events. initially restricted on public health grounds when publicly attended entertainment and sporting events resume. Event organisers would continue to see revenues from high-demand sporting and entertainment events go to third-party ticket resellers who have no involvement in, or make no contribution to, sport or entertainment. No administrative or enforcement costs would be incurred by the State. There would be no cost or other impacts on secondary ticket sellers or secondary ticket marketplaces. —— 4 Introduction of legislation COSTS BENEFITS IMPACTS Secondary ticket sellers would Access to tickets for high- Some secondary ticket be prevented from making the demand events for sports sellers may resort to the gains currently made from the and music fans on the resale of event tickets on resale of event tickets for a primary ticket market would online marketplaces based price above their original sale be enhanced by the reduced in other countries or through price. Due mainly to the incentive and opportunity for black market and other sales relatively small size of the Irish secondary ticket sellers to channels that may be event market, industry sources purchase tickets in order to difficult to monitor and which believe that most secondary resell them for gain. do not provide the type of ticket sellers here engage in guarantees offered to ticket such resale on an occasional, Subject to exceptions on purchasers by established small-scale basis. The Bill’s grounds of safety, public secondary ticket impact on such sellers will be health or public order, ticket marketplaces. limited, but will be more holders would no longer be significant on secondary sellers precluded by the terms of Given the borderless nature operating on a larger scale and ticket contracts from of online transactions, some a more regular basis. transferring tickets for free or Irish sports or music fans from selling them at a price unable to obtain for tickets There would be an impact on at or below the original sale for sold-out events here may the revenues of secondary price. seek out tickets on websites ticket marketplaces whose fees in other jurisdictions. As the are set as a percentage of the Purchasers of tickets from proceedings taken against a resale price of tickets. The secondary ticket sellers Norwegian reseller for the direct impact on the two main would benefit from the sale of tickets for the London secondary ticket marketplaces requirement on such sellers Olympics outlined below currently operating in Ireland to provide information on the demonstrate however, a would be limited by the fact that original sale price of the secondary ticket seller the Irish market accounts for a ticket and on the location of outside Ireland who, after relatively small part of their the seat or standing area to the enactment of the present operations here. Secondary which the ticket entitles the Bill, states or otherwise ticket marketplaces would also holder to gain admission. creates the impression that continue to be able to provide a the sale of tickets for events platform for the sale of tickets at Sporting bodies, event in Ireland for a price above a price at or below their original organisers and artists would the original sale price is sale price. Such sales are see less revenue from lawful would be in breach of estimated to account for 25-40 events which they organise the Unfair Commercial per cent of ticket sales on these and stage going to Practices Directive. marketplaces. secondary ticket sellers. If resale above the original There would be a cost to the The Government would fulfil sale price is no longer an Exchequer arising from the its obligation to UEFA to option on established need to provide the necessary prohibit the unauthorised secondary ticket enforcement resources to the resale of tickets for the marketplaces, some Garda Síochána. This cost will EURO 2020 championship. secondary sellers may shift depend on the level of their activities to necessary enforcement action underground or black market and cannot be accurately sales channels and some quantified in advance. The buyers may purchase tickets —— 5 procedure for the designation of through these channels. venues and events will give rise Those who purchase tickets to administrative costs for the from illicit secondary sellers Department of Enterprise, in the knowledge that such Trade and Employment. As the purchases are in breach of number of venues seeking the law on the resale of designation is expected to be event tickets would take, limited and the procedure for and would have to accept, designation is relatively the risk that they would have straightforward, these costs will no redress if tickets were not mainly arise in the period delivered or were following the Act’s counterfeit. commencement and are not expected to be substantial. —— 6 2 Policy context Ticket resale 1.Tickets sold by venues, promoters and sporting bodies, or by ticketing service providers authorised by them, constitute primary ticket sales and the arrangements by which such tickets are sold constitute the primary ticket market.1 On the secondary ticket market, tickets previously sold or allocated through the primary ticket market are resold or offered for resale. Though ticket sale and resale are subject to general consumer protection legislation, there is no currently statutory prohibition of ticket resale in Ireland or regulation of the mark-up over the face value of tickets offered for sale on the secondary ticket market. 2. While the figures can vary from year to year, the number of entertainment events that give rise to a non-marginal level of above sale price resale is estimated to be around fifty annually and the number of such events that give rise to a significant level of resale is generally around ten or fewer. Discussions with industry representatives and the Department’s monitoring of secondary ticket platforms suggest that secondary ticket sales can account for 1 to 5 per cent of the tickets sold for major entertainment events and may rise to 10 per cent or more for some exceptionally high-demand events. The number of sporting events that give rise to an appreciable level of resale is, depending on fixtures, generally between five and ten annually. The proportion of tickets for these events offered for resale is usually below that for major entertainment events due to the more restrictive ticket distribution arrangements that apply to major sporting events. 3.The investigation undertaken in 2020 by the UK Competition and Markets Authority into the purchase of the secondary ticket marketplace StubHub by the rival viagogo marketplace found that secondary ticket sales in the UK in 2019 accounted for 5-6 per cent of the number of primary tickets sold and around 12-20 per cent of the value of primary ticket sales.2 1 A more detailed account of the primary and secondary markets for event tickets can be found in the Consultation Paper on the resale of tickets for entertainment and sporting events issued by the Department of Jobs, Enterprise and Innovation and the Department of Transport, Tourism and Sport in 2017.
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