Consumer Rights Bill

Insert the following new Clause—

“CHAPTER 3B

SECONDARY TICKETING

Duty to report criminal activity

(1)     This section applies where—

(a)   an operator of a secondary ticketing facility knows that a person has
used or is using the facility in such a way that an offence has been
or is being committed, and

(b)   the offence relates to the re-sale of a ticket for a recreational,
sporting or cultural event in the United Kingdom.

(2)     The operator must, as soon as the operator becomes aware that a person
has used or is using the facility as mentioned in subsection (1), disclose the
matters specified in subsection (3) to—

(a)   an appropriate person, and

(b)   an organiser of the event (subject to subsection (5)).

(3)     Those matters are—

(a)   the identity of the person mentioned in subsection (1), if this is
known to the operator, and

(b)   the fact that the operator knows that an offence has been or is being
committed as mentioned in that subsection.

(4)     The following are appropriate persons for the purposes of this section—

(a)   a constable of a police force in England and Wales,

(b)   a constable of the police service of Scotland, and

(c)   a police officer within the meaning of the Police (Northern Ireland)
Act 2000.

(5)     This section does not require an operator to make a disclosure to an
organiser of an event if the operator has reasonable grounds for believing
that to do so will prejudice the investigation of any offence.

(6)     References in this section to an offence are to an offence under the law of
any part of the United Kingdom.

(7)     This section applies only in relation to an offence of which an operator
becomes aware after the coming into force of this section.”

Insert the following new Clause—

“Enforcement of section (Duty to report criminal activity)

(1)     A local weights and measures authority in Great Britain may enforce the
provisions of section (Duty to report criminal activity) in its area.

(2)     The Department of Enterprise, Trade and Investment may enforce the
provisions of section (Duty to report criminal activity) in Northern Ireland.

(3)     Each of the bodies referred to in subsections (1) and (2) is an “enforcement
authority” for the purposes of this Chapter.

(4)     Where an enforcement authority is satisfied on the balance of probabilities
that a person has breached the duty in section (Duty to report criminal
activity), the authority may impose a financial penalty on the person in
respect of that breach.

(5)     A local weights and measures authority in England and Wales may impose
a penalty under this section in respect of a breach which occurs in England
and Wales but outside that authority’s area (as well as in respect of a breach
which occurs within that area).

(6)     A local weights and measures authority in Scotland may impose a penalty
under this section in respect of a breach which occurs in Scotland but
outside that authority’s area (as well as in respect of a breach which occurs
within that area).

(7)     Only one penalty under this section may be imposed on the same person in
respect of the same breach.

(8)     The amount of a financial penalty imposed under this section—

(a)   may be such as the enforcement authority imposing it determines,
but

(b)   must not exceed £5,000.

(9)     Schedule (Secondary ticketing: financial penalties) (procedure for and appeals
against financial penalties) has effect.”

Insert the following new Clause—

“Duty to review measures relating to secondary ticketing

(1)     The Secretary of State must—

(a)   review, or arrange for a review of, consumer protection measures
applying to the re-sale of tickets for recreational, sporting or
cultural events in the United Kingdom through secondary ticketing
facilities,

(b)   prepare a report on the outcome of the review or arrange for such a
report to be prepared, and

(c)   publish that report.

(2)     The report must be published before the end of the period of 12 months
beginning with the day on which this section comes into force.

(3)     The Secretary of State must lay the report before Parliament.

(4)     In this section “consumer protection measures” includes such legislation,
rules of law, codes of practice and guidance as the Secretary of State
considers relate to the rights of consumers or the protection of their
interests.”

Insert the following new Clause—

“Interpretation of this Chapter

(1)     In this Chapter—

“enforcement authority” has the meaning given by section
(Enforcement of section (Duty to report criminal activity))(3);

“operator”, in relation to a secondary ticketing facility, means a person
who—

(a)   exercises control over the operation of the facility, and

(b)   receives revenue from the facility,

but this is subject to regulations under subsection (2);

“organiser”, in relation to an event, means a person who—

(a)   is responsible for organising or managing the event, or

(b)   receives some or all of the revenue from the event;

“secondary ticketing facility” means an internet-based facility for the
re-sale of tickets for recreational, sporting or cultural events.

(2)     The Secretary of State may by regulations provide that a person of a
description specified in the regulations is or is not to be treated for the
purposes of section (Duty to report criminal activity) as an operator in
relation to a secondary ticketing facility.

(3)     Regulations under subsection (2)—

(a)   are to be made by statutory instrument;

(b)   may make different provision for different purposes;

(c)   may include incidental, supplementary, consequential, transitional,
transitory or saving provision.

(4)     A statutory instrument containing regulations under subsection (2) is not
to be made unless a draft of the instrument has been laid before, and
approved by a resolution of, each House of Parliament.”

Page 48, line 18, at end insert—

“(1C)    Chapter 3B of this Part comes into force at the end of the period of two
months beginning with the day on which this Act is passed.”

Page 72, line 8, at end insert—

“section (Enforcement of section (Duty to report criminal activity))(1) or (2)
of this Act.”

Insert the following new Schedule—

“SCHEDULE

SECONDARY TICKETING: FINANCIAL PENALTIES

Notice of intent

1   (1)     Before imposing a financial penalty on a person for a breach of the duty
imposed by section (Duty to report criminal activity), an enforcement
authority must serve a notice on the person of its proposal to do so (a
“notice of intent”).

(2)     The notice of intent must be served before the end of the period of 6
months beginning with the first day on which the authority has
sufficient evidence of the person’s breach, subject to sub-paragraph (3).

(3)     If the person is in breach of the duty on that day, and the breach
continues beyond the end of that day, the notice of intent may be
served—

(a)   at any time when the breach is continuing, or

(b)   within the period of 6 months beginning with the last day on
which the breach occurs.

(4)     The notice of intent must set out—

(a)   the amount of the proposed financial penalty,

(b)   the reasons for proposing to impose the penalty, and

(c)   information about the right to make representations under
paragraph 2.

Right to make representations

2      A person on whom a notice of intent is served may, within the period of
28 days beginning with the day after that on which the notice was sent,
make written representations to the enforcement authority about the
proposal to impose a financial penalty on the person.

Final notice

3   (1)     After the end of the period mentioned in paragraph 2 the enforcement
authority must—

(a)   decide whether to impose a financial penalty on the person, and

(b)   if it decides to do so, decide the amount of the penalty.

(2)     If the authority decides to impose a financial penalty on the person, it
must serve a notice on the person (a “final notice”) imposing that
penalty.

(3)     The final notice must require the penalty to be paid within the period of
28 days beginning with the day after that on which the notice was sent.

(4)     The final notice must set out—

(a)   the amount of the financial penalty,

(b)   the reasons for imposing the penalty,

(c)   information about how to pay the penalty,

(d)   the period for payment of the penalty,

(e)   information about rights of appeal, and

(f)   the consequences of failure to comply with the notice.

Withdrawal or amendment of notice

4   (1)     The enforcement authority may at any time—

(a)   withdraw a notice of intent or final notice, or

(b)   reduce the amount specified in a notice of intent or final notice.

(2)     The power in sub-paragraph (1) is to be exercised by giving notice in
writing to the person on whom the notice was served.

Appeals

5   (1)     A person on whom a final notice is served may appeal against that
notice—

(a)   in England and Wales and Scotland, to the First-tier Tribunal;

(b)   in Northern Ireland, to a county court.

(2)     The grounds for an appeal under this paragraph are that—

(a)   the decision to impose a financial penalty was based on an error
of fact,

(b)   the decision was wrong in law,

(c)   the amount of the financial penalty is unreasonable, or

(d)   the decision was unreasonable for any other reason.

(3)     If a person appeals under this paragraph, the final notice is suspended
until the appeal is finally determined or withdrawn.

(4)     On an appeal under this paragraph the First-tier Tribunal or the court
may quash, confirm or vary the final notice.

(5)     The final notice may not be varied under sub-paragraph (4) so as to make
it impose a financial penalty of more than £5,000.

Recovery of financial penalty

6   (1)     This paragraph applies if a person does not pay the whole or any part of
a financial penalty which, in accordance with this Schedule, the person
is liable to pay.

(2)     In England and Wales the local weights and measures authority which
imposed the financial penalty may recover the penalty or part on the
order of the county court as if it were payable under an order of that
court.

(3)     In Scotland the penalty may be enforced in the same manner as an
extract registered decree arbitral bearing a warrant for execution issued
by the sheriff court of any sheriffdom in Scotland.

(4)     In Northern Ireland the Department of Enterprise, Trade and Investment
may recover the penalty or part on the order of a county court as if it
were payable under an order of that court.

(5)     In proceedings before the court for the recovery of a financial penalty or
part of a financial penalty, a certificate which is—

(a)   signed by the chief finance officer of the local weights and
measures authority which imposed the penalty or (as the case
may be) issued by the Department of Enterprise, Trade and
Investment, and

(b)   states that the amount due has not been received by a date
specified in the certificate,

is conclusive evidence of that fact.

(6)     A certificate to that effect and purporting to be so signed or issued is to
be treated as being so signed or issued unless the contrary is proved.

(7)     A local weights and measures authority may use the proceeds of a
financial penalty for the purposes of any of its functions (whether or not
the function is expressed to be a function of a local weights and measures
authority).

(8)     In this paragraph “chief finance officer” has the same meaning as in
section 5 of the Local Government and Housing Act 1989.”