ICC World Cup Ticket Prices: Extreme Need for Government Intervention!

Tickets for India vs Pakistan match at World Cup 2023 are selling at as high as ₹56 lakh in the secondary market. While social media users have been making such claims for some time now, when we checked it ourselves, we found some of the tickets being sold on Viagogo for a whopping ₹57,62,676. 

Netizens are questioning the legitimacy of popular event booking app BookMyShow which had the tickets sold out in minutes.  Some fans are alleging that bots were used to buy up a large number of tickets in the primary market, which then flooded the secondary market at exorbitant prices. BookMyShow has denied these allegations, but they have not provided any evidence to support their claim.
The high ticket prices for the India vs Pakistan match at the World Cup 2023 are a major concern for fans and the cricketing community alike. While the ICC has said that it is aware of the situation and is investigating, it is important to take steps to ensure that tickets are affordable for genuine fans.

This is the topic of our blog today where we will get into the legalities of the secondary ticket market in India and how this is being done in foreign countries. 

India’s Secondary Ticket Market

India’s secondary ticket market has become a booming business. It operates in a grey area, where people can resell event tickets for profits. This has led to popular events, concerts, sports and shows having exorbitant ticket prices.There have been controversies surrounding the secondary ticket market in India. While some see it as an opportunity to make extra income, others argue it promotes black marketing and discourages fair trade. There are also concerns regarding the authenticity of tickets sold on the secondary market. These controversies have left the Indian ticketing industry in a constant state of flux. As we delve into the legal angle and cultural ramifications of India’s secondary ticket market, we must consider the pros and cons of ticket reselling before deciding on the best way forward. It is crucial to find a fair and lawful approach to secondary ticket sales in India that works for everyone. 

The Legal Angle

The Legal Angle Contrary to popular belief, India does not have a specific law that regulates the secondary ticket market. 

However, there are several laws that, either directly or indirectly, impact the resale of tickets. Let’s start with the Indian Constitution. 

The right to freedom of trade and commerce, enshrined under Article 19(1)(g), gives citizens the right to carry on any lawful business. However, this right is not absolute, and the State can impose restrictions on it in the interest of the general public. 

Moving on to the Indian Contract Act, 1872, it is essential to mention that any contract made for the sale or purchase of tickets is legally binding. Therefore, if someone sells their ticket to another person, a contract has been formed, which is enforceable in court. The Doctrine of Privity of Contract means that only parties to a contract can enforce it and enjoy its benefits. This doctrine has significant implications for ticket reselling. Since the original ticket purchaser and the secondary buyer do not have a contractual relationship, a dispute may arise if either party violates the agreed-upon terms.

Finally, the Information Technology Act, 2000, plays a crucial role in governing the online resale of tickets. The act penalizes any person or entity who violates the rules of online ticketing or who uses electronic communication to commit fraud or other offenses. Although there are no explicit laws regulating the secondary ticket market in India, the existing laws are enough to hold violators accountable. That being said, the laws must be enforced, and the ticketing industry must make efforts to promote transparency and accountability in all transactions. After all, the primary goal must always be to ensure that customers have a fair and equitable opportunity to attend popular events.

A Comparative Study

The secondary ticket market is regulated in different ways in different developed nations. Some countries have strict regulations in place, while others have a more laissez-faire approach.

Here are some examples of how the secondary ticket market is regulated in some developed nations:

• United States: The secondary ticket market is regulated in the United States by the Federal Trade Commission (FTC) and the state governments. The FTC prohibits unfair and deceptive practices related to the sale of tickets, including false advertising and deceptive pricing. State governments have also enacted a variety of laws to regulate the secondary ticket market, such as laws that prohibit the use of bots to purchase tickets and laws that require ticket sellers to disclose certain information to buyers.
• United Kingdom: The secondary ticket market in the United Kingdom is regulated by the Consumer Rights Act 2015. This law prohibits unfair trading practices, such as misleading consumers about the price or availability of tickets. The law also requires ticket sellers to disclose certain information to buyers, such as the name and address of the seller and the terms and conditions of the sale.
• Australia: The secondary ticket market in Australia is regulated by the Competition and Consumer Act 2010. This law prohibits unfair practices in trade or commerce, including misleading or deceptive conduct. The law also requires ticket sellers to disclose certain information to buyers, such as the name and address of the seller and the terms and conditions of the sale.

In addition to these general regulations, some developed nations have also enacted specific laws to regulate the secondary ticket market for certain types of events. For example, in the United States, there are laws that regulate the resale of tickets to sporting events and concerts.

Benefits of Regulating the Secondary Ticket Market

Here are some of the benefits of regulating the secondary ticket market:

• Protecting consumers from fraud and deception. By requiring ticket sellers to disclose certain information to buyers, such as the name and address of the seller and the terms and conditions of the sale, regulators can help to protect consumers from fraud and deception.
• Preventing the resale of tickets at excessive prices. Some regulations, such as price caps on resale margins, can help to prevent ticket brokers from charging excessive prices for tickets.
• Ensuring that fans have access to tickets at fair prices. By regulating the secondary ticket market, regulators can help to ensure that fans have access to tickets at fair prices, even for popular events.

Possible Solutions

Okay, so we explored the legal and cultural aspects of India’s secondary ticket market. Now, let’s look at what we can do to fix the problem, shall we? 

Regulatory mechanisms applicable to ticket reselling in India: The government needs to step in and regulate ticket reselling by imposing a cap on the resale price or using a progressive taxation system. 

They can also track and monitor sellers to ensure compliance with regulations. How technology can help in reducing ticket fraud and illegal transactions: The use of blockchain technology can ensure transparency, security, and traceability in ticket sales. Mobile ticketing and AI-based fraud detection systems can also reduce the risk of counterfeiting and fraud. Learning from best practices of other countries

We can take a cue from countries like the UK, which have implemented anti-touting laws and imposed strict penalties on offenders. The US has also adopted a hybrid approach of regulation and technology, which has proved to be effective in reducing ticket scalping. Now, these are just preliminary ideas, but the bottom line is this: We need a comprehensive and holistic approach to tackle this problem. The government, event organizers, and ticketing companies need to work together to ensure transparency, fairness, and accessibility in ticket sales. After all, events are meant to bring people together, not push them apart based on their financial status. Let’s make sure everyone gets a fair shot at attending their favorite events!

Conclusion

After analysing the legal and cultural implications of India’s secondary ticket market, it is essential to weigh its pros and cons. While ticket reselling can generate revenue, it often leads to black marketing and unfair pricing. Therefore, there is a need for a lawful and equitable approach to regulate ticket reselling in India. Implementing technology like blockchain can help reduce ticket fraud and illegal transactions. As a diverse country, we need to ensure that ticket pricing doesn’t discourage event attendees from various economic backgrounds. Ultimately, India needs to follow the right measures and learn from global best practices to tackle this issue efficiently.

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