Spain to ban the growing problem of event ticket prices being massively hiked when offered for resale

The government in Spain is going to ban by law the hiking of ticket prices for all kinds of cultural events when they are offered for resale. The aim is to put an end to mass, automated purchases of tickets by making the practice unprofitable. The measure seeks to directly attack what makes this activity a lucrative business, which benefits from the willingness of thousands of people to pay more to see their idol.

This legal reform will be included in the sustainable consumption law, the preliminary draft of which was submitted by the Ministry of Social Rights and Consumption on Tuesday, 1 July, for approval by the council of ministers.

The use by individuals or companies of 'bots' or other types of electronic devices or software that allow the mass purchase of tickets for resale has been banned in Spain since 2020. However, authorities themselves admit that the measure has not worked, as is easily verified when someone tries without success to buy tickets for a concert in high demand. The risk of legal infringement is outweighed by the amount of money that can be made.

The new reform will make it illegal to resell event tickets at a price higher than the original. The only price adjustment allowed under the new legal change will be to account for inflation (the consumer price index, or CPI) between the time the ticket was bought and when it is resold. Not a single euro more. If this were achieved, the benefit for ordinary citizens would be twofold: they would have easier access to the tickets they want and they would avoid a reduction in family income that helps no one because those who take advantage of it do not declare the profits.

The idea behind the legal change is the same one that is already trying to put an end to the advertising of tourist flats without a licence. With this reform, reselling tickets at a price higher than the regulated one could possibly lead to the blocking of the websites where the infringement has taken place and the consequent sanctioning of the author and beneficiary.

The measure replicates a similar legal sanction that Belgium has been applying for years, somewhat different from the path taken by France, which bans the regular resale of tickets for cultural, sporting or commercial events without the express authorisation of the organiser or producer of the event.

It has been estimated that, across the EU, resale ticket activities could generate some 1.8 billion euros. However, this figure could reach some 7.8 billion euros by 2030. Official estimates are that the resale market in Spain is currently worth some 322 million euros, but that in five years it could be very close to three times this.