UK preparing to cap ticket resale face value

Photo Credit: London Stadium by Hammersfan / CC by 4.0

The UK government is reportedly preparing to announce a ticket resale price cap at “face value,” outlawing all for-profit ticket resale.

According to a new report from The Guardian and Financial Times on Monday, the UK government is moving ahead with its long-awaited crackdown on ticket scalping—reselling tickets for profit will be outlawed under new legislation to be announced this week.

The new policy, while not yet publicly revealed, would ban anyone—both professional ticket resellers and average consumers—from reselling tickets above the original face value.

The move, if confirmed, marks a decisive shift from earlier proposals that suggested allowing a limited markup of up to 130% of the face value. Resellers would instead be restricted to the exact price they paid, with only “modest service fees” permitted for platforms facilitating the transaction. Those fees would also be capped at a level yet to be determined.

So far, it’s unclear whether these rules will extend to event promoters being required to announce an actual “face value” figure prior to the tickets going on sale. But resale platforms will reportedly be held legally responsible for ensuring seller compliance, with enforcement handled by the UK Competition and Markets Authority.

Resellers will be prevented from listing more tickets than they could have legitimately purchased from the original point of sale under event-imposed limits. However, it’s unknown if promoters will be required to disclose the number of tickets held back from initial sale to promote a sense of scarcity. A licensing system for resale platforms, which was an option considered during the government’s consultation, will not be included, according to The Guardian.

But even before the ink had dried on the government’s proposed legislation, StubHub and Live Nation stock both took a tumble over the news. StubHub (NYSE: STUB) shares fell by 6% following the Financial Times report, while Live Nation (NYSE: LYV) dropped by around 3% on Monday.

The potential ban could indeed significantly impact StubHub’s business model as a ticket resale marketplace—certainly more so than Live Nation’s, which primarily sells tickets directly through Ticketmaster. That difference is apparent in the steeper decline seen in StubHub’s stock compared to Live Nation.

Notably, the UK isn’t the first to implement resale price restrictions. Several European nations have already regulated ticket resale prices, but the enforcement and scope vary by jurisdiction. However, the UK may become the first to ban any ticket resales at prices higher than their face value across the board.

Norway and Portugal have similar laws banning the resale of tickets above face value. Ireland has outlawed tickets resold above their face value unless a special venue designation is made, while Italy’s law makes such resale illegal for commercial purposes. Germany and Australia already have firm resale price caps in place.