International investigation into the reselling of tickets online pays off

Benelux countries undertook a joint study into the problems surrounding online ticket sales

The consumer enforcement authorities of the three Benelux countries (Belgium, the Netherlands and Luxembourg) have established that it is well worth adopting a joint approach to the problems surrounding the online resale of tickets for concerts and events. The three countries have worked together in order to investigate websites that resell these tickets to consumers in the three countries. This is the third investigation (furniture sector, electrical goods suppliers) since 2008 that the three countries have worked on together for consumer protection matters.

The websites that resell tickets operate mainly from the Netherlands, targeting not only Dutch consumers, but also those over the border, especially in Belgium and Luxembourg. It is not always made sufficiently clear to consumers that they are buying resold tickets, and what the consequences of this could be (such as that they are often more expensive,  that they run the risk of not being allowed entry to the event, and that they may not receive a full refund if they cancel their ticket). The Belgian and Dutch government had had previous discussions with regard to a joint approach towards this matter and in recent months, this has led to the three countries working closely together in order to improve the information on sites that resell tickets.

The Dutch Consumer Authority have identified 24 websites that are active in this market. Together with their colleagues in Belgium and Luxembourg, they have carried out a detailed investigation of these websites. Research also took place at a Lady Gaga concert in Antwerp. As a result of this, the information provided to consumers on these websites has been considerably improved.

Consumers are now clearly informed of the fact that they are on a site where tickets are resold, and are aware of the risks associated with this. During the course of the research, the 24 websites under investigation were informed of what content needed to be amended. In the case of nine websites that failed to make the required admendments, the Consumer Authority in the Netherlands imposed sanctions to ensure they comply with the rules.

Although the reselling of tickets is not prohibited in any of the Benelux countries, the law requires websites to state clearly that they are reselling tickets and what the consequences of this could be for consumers. Although the transparency of the websites on this point has been greatly improved, it cannot be concluded that this has solved all the problems. As the internet is a transitory medium, with websites constantly disappearing and being created, checks on these sites will have to continue. It is also the case that consumers themselves have a responsibility to check who they are doing business with, and what the terms and conditions of those transactions are.

In order to regulate the reselling of tickets, legislation for this is under preparation in the Netherlands as well as in Belgium. As the online market is very transitory and suppliers can easily set up elsewhere, where less stringent rules apply, international collaboration (between the Benelux countries) is of great importance in this regard.