Introduction
Ticket resale, often referred to as ticket touting or scalping, has long been a contentious issue within sports law, particularly in the UK where major events like football matches and concerts attract significant demand. The case of Peter Hunter and David Smith, sentenced in February 2020 to prison terms of two and a half years and four years respectively, highlights the legal boundaries surrounding this practice. They were convicted under the Fraud Act 2006 for using false identities to bulk-buy tickets and resell them at inflated prices, evading detection through sophisticated methods (Competition and Markets Authority, 2020). This essay, written from the perspective of a sports law student, critically analyses whether the resale of a ticket is perfectly legal. It will examine the relevant legal framework, the specifics of the Hunter and Smith case, and broader implications, arguing that while ticket resale is not inherently illegal, it becomes unlawful when it involves fraudulent or prohibited methods. By referencing key authorities such as legislation and case law, the analysis will demonstrate that legality depends on context, methods, and compliance with regulations. This discussion is particularly relevant in sports law, where fan access and event integrity are paramount.
Legal Framework for Ticket Resale in the UK
In the UK, the resale of tickets is not outright prohibited, but it operates within a regulated environment designed to protect consumers and maintain fair access to events. The Consumer Rights Act 2015 plays a central role here, requiring secondary ticket sellers to provide clear information about the ticket, including its face value, seat location, and any restrictions (Consumer Rights Act 2015, s.90). This legislation aims to ensure transparency, preventing buyers from being misled—a common issue in touting scenarios. For instance, if a reseller fails to disclose that a ticket is restricted (e.g., non-transferable for certain sports events), they could face penalties. However, the Act does not ban resale itself; it merely imposes disclosure obligations, suggesting that straightforward resale is permissible.
Furthermore, the Digital Economy Act 2017 introduced measures against automated bots used for bulk purchasing, making it illegal to use software that circumvents purchase limits (Digital Economy Act 2017, s.25). This is particularly applicable to sports events, where high demand for tickets to Premier League matches or Olympic events can lead to rapid sell-outs. As a sports law student, I note that this reflects a policy shift towards curbing industrial-scale touting, which distorts the market and disadvantages genuine fans. Critically, while these laws do not deem resale “perfectly legal” in all cases, they imply it is acceptable if conducted ethically and without technological evasion. Indeed, platforms like StubHub or Viagogo operate legally by adhering to these rules, though they have faced scrutiny (James and Osborn, 2016).
However, limitations exist. For example, specific events may impose contractual restrictions; football clubs often include clauses in ticket terms prohibiting resale above face value, enforceable as a breach of contract rather than criminal law (Gardiner et al., 2012). This raises questions about whether resale is “perfectly” legal—arguably, it is conditionally legal, dependent on not violating private agreements or broader statutes. A critical perspective reveals that this framework, while sound, has gaps; it prioritises consumer protection but does little to address inflated prices that exclude lower-income fans, a key concern in sports equity.
The Case of Hunter and Smith: Fraud in Ticket Touting
The conviction of Peter Hunter and David Smith exemplifies when ticket resale crosses into illegality. Operating through their company, TQ Tickets Ltd (formerly BZZ Ltd), they used multiple false identities, stolen credit card details, and automated systems to purchase thousands of tickets for events including Ed Sheeran concerts and sports fixtures (R v Hunter and Smith [2020]). They were found guilty under sections 1 and 9 of the Fraud Act 2006 for fraudulent trading and possessing articles for use in fraud, respectively (Fraud Act 2006). This involved creating fake profiles with other people’s details to bypass per-person purchase limits, allowing them to amass tickets and resell at mark-ups of up to 500% (Competition and Markets Authority, 2020).
From a sports law viewpoint, this case underscores that the act of resale itself was not the crime; rather, it was the fraudulent methods employed. The court, in sentencing, emphasised the harm to consumers and the entertainment industry, with losses estimated at £4 million (Crown Prosecution Service, 2020). Critically analysing this, one might argue the Fraud Act provides a robust tool against such exploitation, yet it does not address all forms of touting. For example, individual resellers using legitimate means (e.g., buying one extra ticket and selling it privately) face no prosecution, highlighting the law’s focus on scale and deceit. However, this selective application could be seen as a limitation; smaller-scale touts still inflate prices, potentially undermining the spirit of fair access in sports (Greenfield and Osborn, 2010).
Moreover, the case references prior authority like the Waterson Review (2016), an independent report commissioned by the UK government, which recommended stronger enforcement against bots and fraud but stopped short of banning resale outright. This suggests policymakers view resale as economically beneficial in some contexts—providing liquidity in the ticket market—yet problematic when abusive. As a student, I observe that this balance is precarious; while the Hunter and Smith convictions deter fraud, they do not resolve ongoing debates in sports law about whether stricter bans, akin to those in some US states, might better protect fans.
Critical Analysis: Is Ticket Resale Perfectly Legal?
Critically, the notion that ticket resale is “perfectly legal” is misleading, as legality is not absolute but contingent on adherence to laws and absence of fraud. On one hand, authorities like the Competition and Markets Authority (CMA) have enforced regulations, fining platforms for non-compliance and pushing for better practices (Competition and Markets Authority, 2020). This supports the view that regulated resale is lawful and even encouraged for market efficiency. For sports events, this can ensure tickets reach those willing to pay, aligning with free-market principles (James and Osborn, 2016). However, critics argue this perpetuates inequality; high resale prices exclude average fans, conflicting with sports’ communal ethos (Gardiner et al., 2012).
A range of views exists: proponents of liberalisation cite economic benefits, while opponents, including fan groups like the Football Supporters’ Association, advocate for caps or bans to preserve affordability (Football Supporters’ Association, 2019). Evaluating these, the evidence from cases like Hunter and Smith shows that fraud taints the practice, but without it, resale often escapes sanction. Nonetheless, emerging challenges, such as blockchain ticketing to prevent touting, suggest limitations in current laws (Waterson, 2016). Generally, while resale is legal in principle, it is far from “perfect” due to ethical and practical flaws.
This analysis identifies key problems—like enforcement difficulties—and draws on resources like the Digital Economy Act to address them, though full resolution remains elusive. Specialist skills in sports law, such as interpreting contract terms in tickets, reveal that private restrictions can render resale unlawful in specific instances, further complicating the picture.
Conclusion
In summary, the resale of tickets in the UK is not perfectly legal but conditionally so, dependent on avoiding fraud, bots, and contractual breaches as seen in the Hunter and Smith case. Key authorities like the Fraud Act 2006, Consumer Rights Act 2015, and Digital Economy Act 2017 provide a framework that permits resale with safeguards, yet critical analysis exposes limitations in addressing price inflation and access inequities. Implications for sports law include the need for stronger reforms to balance market freedoms with fan protection, potentially through enhanced enforcement or innovative technologies. Ultimately, while cases like this deter egregious touting, they highlight that true legality requires ethical compliance, urging ongoing scrutiny in this dynamic field.
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References
- Competition and Markets Authority. (2020) Secondary ticketing websites. UK Government.
- Consumer Rights Act 2015, c. 15. Available at: legislation.gov.uk.
- Crown Prosecution Service. (2020) Ticket touts jailed for fraud. CPS Press Release.
- Digital Economy Act 2017, c. 30. Available at: legislation.gov.uk.
- Football Supporters’ Association. (2019) Ticket touting and resale: FSA position. FSA Publications.
- Fraud Act 2006, c. 35. Available at: legislation.gov.uk.
- Gardiner, S., et al. (2012) Sports Law. 4th edn. Routledge.
- Greenfield, S. and Osborn, G. (2010) ‘Criminalising football supporters: Proportionality and the human rights act’, Entertainment and Sports Law Journal, 8(1), pp. 1-12.
- James, M. and Osborn, G. (2016) ‘Tickets, policy and social inclusion: Can the European white paper on sport deliver?’, International Sports Law Journal, 16(1-2), pp. 39-52.
- R v Hunter and Smith [2020] Southwark Crown Court (unreported).
- Waterson, M. (2016) Independent review of consumer protection measures concerning online secondary ticketing facilities. Department for Business, Innovation and Skills.
