Consumer Rights Bill

Insert the following new Clause—

Secondary ticketing

Duty to report criminal activity

(1)     This section applies where a person (“the seller”) re-sells a ticket for a
recreational, sporting or cultural event in the United Kingdom through a
secondary ticketing facility.

(2)     The seller and each operator of the facility must ensure that the information
specified in subsection (3) is displayed on the secondary ticketing platform
where the ticket is offered for sale, where this is applicable to the ticket.

(3)     That information is—

(a)   where the ticket is for a particular seat or standing area at the venue
for the event, the information necessary to enable the buyer to
identify that seat or standing area,

(b)   information about any restriction which limits use of the ticket to
persons of a particular description, and

(c)   the face value of the ticket.

(4)     The reference in subsection (3)(a) to information necessary to enable the
buyer to identify a seat or standing area at a venue includes, so far as
applicable—

(a)   the name of the area in the venue in which the seat or standing area
is located (for example the name of the stand in which it is located),

(b)   information necessary to enable the buyer to identify the part of the
area in the venue in which the seat or standing area is located (for
example the block of seats in which the seat is located),

(c)   the number, letter or other distinguishing mark of the row in which
the seat is located, and

(d)   the number, letter or other distinguishing mark of the seat.

(5)     The reference in subsection (3)(c) to the face value of the ticket is to the
amount stated on the ticket as its price.

(6)     The seller and each operator of the facility must ensure that the buyer is
given the information specified in subsection (7), where the seller is—

(a)   an operator of the secondary ticketing facility,

(b)   a person who is a parent undertaking or a subsidiary undertaking
in relation to an operator of the secondary ticketing facility,

(c)   a person who is employed or engaged by an operator of the
secondary ticketing facility,

(d)   a person who is acting on behalf of a person within paragraph (c), or

(e)   an organiser of the event or a person acting on behalf of an
organiser of the event.

(7)     That information is a statement that the seller of the ticket is a person
within subsection (6) which specifies the ground on which the seller falls
within that subsection.

(8)     Information required by this section to be given to the buyer must be
given—

(a)   in a clear and comprehensive manner, and

(b)   before the buyer is bound by the contract for the sale of the ticket.

(9)     This section applies in relation to the re-sale of a ticket through a secondary
ticketing facility only if the ticket is first offered for re-sale through the
facility after the coming into force of this section.”

Insert the following new Clause—

“Prohibition on cancellation or blacklisting

(1)     This section applies where a person (“the seller”) re-sells, or offers for re-
sale, a ticket for a recreational, sporting or cultural event in the United
Kingdom through a secondary ticketing facility.

(2)     An organiser of the event must not cancel the ticket merely because the
seller has re-sold the ticket or offered it for re-sale unless—

(a)   a term of the original contract for the sale of the ticket—

(i)   provided for its cancellation if it was re-sold by the buyer
under that contract,

(ii)   provided for its cancellation if it was offered for re-sale by
that buyer, or

(iii)   provided as mentioned in sub-paragraph (i) and (ii), and

(b)   that term was not unfair for the purposes of Part 2 (unfair terms).

(3)     An organiser of the event must not blacklist the seller merely because the
seller has re-sold the ticket or offered it for re-sale unless—

(a)   a term of the original contract for the sale of the ticket—

(i)   provided for the blacklisting of the buyer under that
contract if it was re-sold by that buyer,

(ii)   provided for the blacklisting of that buyer if it was offered
for re-sale by that buyer, or

(iii)   provided as mentioned in sub-paragraph (i) and (ii), and

(b)   that term was not unfair for the purposes of Part 2 (unfair terms).

(4)     In subsections (2) and (3) “the original contract” means the contract for the
sale of the ticket by an organiser of the event to a person other than an
organiser of the event.

(5)     For the purposes of this section an organiser of an event cancels a ticket if
the organiser takes steps which result in the holder for the time being of the
ticket no longer being entitled to attend that event.

(6)     For the purposes of this section an organiser of an event blacklists a person
if the organiser takes steps—

(a)   to prevent the person from acquiring a ticket for a recreational,
sporting or cultural event in the United Kingdom, or

(b)   to restrict the person’s opportunity to acquire such a ticket.

(7)     Part 2 (unfair terms) may apply to a term of a contract which, apart from
that Part, would permit the cancellation of a ticket for a recreational,
sporting or cultural event in the United Kingdom, or the blacklisting of the
seller of such a ticket, in circumstances other than those mentioned in
subsection (2).

(8)     Before the coming into force of Part 2, references to that Part in this section
are to be read as references to the Unfair Terms in Consumer Contracts
Regulations 1999 (SI 1999/2083).

(9)     This section applies in relation to a ticket that is re-sold or offered for re-sale
before or after the coming into force of this section; but the prohibition in
this section applies only to things done after its coming into force.”

Insert the following new Clause—

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 this Chapter

(1)     A local weights and measures authority in Great Britain may enforce the
provisions of this Chapter in its area.

(2)     The Department of Enterprise, Trade and Investment may enforce the
provisions of this Chapter 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 a duty or prohibition imposed by this Chapter,
the authority may impose a financial penalty on the person in respect of
that breach.

(5)     But in the case of a breach of a duty in section (Duty to provide information
about tickets) or a prohibition in section (Prohibition on cancellation or
blacklisting) an enforcement authority may not impose a financial penalty
on a person (“P”) if the authority is satisfied on the balance of probabilities
that—

(a)   the breach was due to—

(i)   a mistake,

(ii)   reliance on information supplied to P by another person,

(iii)   the act or default of another person,

(iv)   an accident, or

(v)   another cause beyond P’s control, and

(b)   P took all reasonable precautions and exercised all due diligence to
avoid the breach.

(6)     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).

(7)     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).

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

(9)     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.

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

(11)     References in this section to this Chapter do not include section (Duty to
review measures relating to secondary ticketing).

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 this Chapter)(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;

“parent undertaking” has the meaning given by section 1162 of the
Companies Act 2006;

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

“subsidiary undertaking” has the meaning given by section 1162 of
the Companies Act 2006;

“undertaking” has the meaning given by section 1162 of the
Companies Act 2006;

(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 this Chapter 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 Chapter)(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 a duty or
prohibition imposed by Chapter 3B of Part 3, 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 or prohibition 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.”