Plan to get scalpers out of Kiwis’ hair

The Government plans to stop ticket scalpers through a price cap on resale tickets and banning ticket-buying bots because the “buyer beware mentality is not working”.

Prime Minister Jacinda Ardern said it was “fundamentally unfair that people were profiting, while our arts and culture sector is short-changed and consumers are being scammed”.

She said there was an “obligation and a responsibility” on the Government to do something about it.

After consumers’ complaints, the Government had begun a review into it. As well as the price cap and banning bots, Ardern said it was necessary to enforce rules around information that needed to be disclosed to better inform consumers.

It would mean if someone planned to on-sell a ticket, on Trade Me for example, the seller must disclose the original price.

“We all know people who have bought tickets to the big concerts, sporting events and festivals who have not been able to attend because the tickets were fake or were duplicates,” Ardern said.

It was not just big international events, scalping practices also affected the local cultural sector.

Tickets for the sold-out Eminem concert in Wellington at the weekend were in hot demand. One was put up on a resale site for $2000 — more than 10 times the original price.

The Commerce Commission had received more than 400 complaints about one Swiss-based ticket reselling company, Viagogo, since 2017.

Ardern said she had heard from artists that they were “devastated” scalpers were taking advantage of fans.

Consumer Affairs Minister Kris Faafoi said he was particularly concerned about professional scalpers using ticket “bots” to buy large quantities of tickets online.

Some resale sites were “ripping off New Zealanders”.

“We’re committed to betterprotecting Kiwis when they buy tickets.”

He said the average ticket resale profit was roughly $195 for a highdemand concert — some sold with a 205 per cent profit.

He cited Consumer New Zealand statistics that showed 6 per cent of consumers had bought fake tickets and some 30 per cent had purchased tickets that never arrived.

“It is a significant problem; there is little or no protection for consumers at the moment.”

He said concern about this practice has already resulted in bots being banned in the United States, the United Kingdom and New South Wales.

“It seems entirely appropriate we should also be looking to end this practice in New Zealand. This will give broader protection to those consumers who have been caught out by some of these websites.”

He said the “buyer beware” mentality was not working in this case. Cabinet had agreed to address the issue and had begun a consultation process to make sure all the bases were covered.

Currently, there is no law which prevents tickets being resold for a higher price except where the event is covered by the Major Events Management Act 2007 (MEM Act).