Planned regulations for ticket sales: what ticket providers and event organisers need to know now

Ticket sales for sporting and cultural events are about to undergo comprehensive re-regulation. The German government is planning measures to protect consumers from excessive prices and fraudulent practices and to give event organisers more control over the secondary ticket market. For ticket providers and event organisers, this not only means new challenges, but also the opportunity to make their business models legally compliant and future-proof.

Challenges of the secondary ticket market

The secondary ticket market is a lucrative but legally sensitive business area. Well-known platforms in the sports and event industry make it possible for tickets to be resold anonymously and often at considerable mark-ups. Commercial providers often use automated software (so-called "bots") to buy large quantities of coveted tickets before fans even have a chance to buy them. These tickets are often resold at mark-ups of up to 300%.

Problems for organisers and ticket providers:

• Damage to reputation: Consumers often associate inflated prices with the initial seller, which can damage the brand image.
• Legal uncertainty: Unethical price mark-ups or inadequate measures against the secondary market could have legal consequences.
• Limited control: Unauthorised resale makes it difficult for event organisers to enforce price structures and security measures such as personalised tickets.
• Invalid tickets: Consumers are increasingly complaining about tickets that lose their validity through an unauthorised resale, which causes dissatisfaction and loss of trust and is often associated with the initial seller.

Status quo: current legal situation in Germany

The secondary ticket market in Germany has been inadequately regulated to date, which is why event organisers have to resort to contractual claims to prevent the unauthorised resale of tickets. One common measure is the inclusion of resale bans in general terms and conditions (GTC). These allow event organisers to contractually prohibit the resale of tickets and assert contractual penalties in the event of violations. In addition, many event organisers are turning to personalised tickets, which make their resale considerably more difficult as they can only be used by the original purchaser. Furthermore, event organisers can seek injunctive relief under the German Unfair Competition Act (Gesetz gegen den unlauteren Wettbewerb, UWG) to combat misleading practices such as short selling or false ticket guarantees. Although these measures offer approaches to controlling the secondary ticket market, they often reach their limits in practice. In particular, the identification of resellers is often an insurmountable hurdle, which already causes the enforcement of many claims to fail.

Measures planned by the German government

The German government is planning the comprehensive regulation of the secondary ticket market in order to better protect both consumers and organisers. The core elements of the planned reform include

• Ban on bots: The use of automated software for mass ticket purchases is to be prohibited, similar to the British "BOTS Act".
• Transparency obligations: Platforms must clearly display the original price and the type of seller (private or commercial).
• Price caps: Organisers are to be able to stipulate in their GTC that tickets may only be resold up to 30% above the original price.
• "Notice-and-takedown" principle: Platforms are to be obliged to quickly remove reported false information and provide a reporting system.

Technological solutions and compliance

The planned measures to regulate the secondary ticket market not only oblige companies to adapt their business models and processes, they also make it possible to strengthen customer trust through innovative approaches. One promising solution is personalised tickets, which make their unauthorised resale considerably more difficult and give event organisers better control - a model that is already being successfully implemented at major events in Italy, for example. Authorised resale platforms can also play an important role by creating transparency and curbing the black market. In addition, technological tools such as blockchain technologies offer innovative approaches to ensure the traceability of tickets and effectively prevent manipulation. Such measures not only strengthen legal compliance, but also customer confidence in the integrity of ticket sales.

Now is the time to set the course: seize opportunities and minimise risks in ticket sales

The planned regulations for the secondary ticket market pose new challenges for ticket providers and event organisers. At the same time, they provide them with the opportunity to strengthen customer trust through legally sound and transparent business models and to position themselves as pioneers in a changing industry. Companies that react early to the planned changes can not only minimise legal risks, but can also secure long-term competitive advantages. Check your current ticket sales models: are your GTC, pricing models and processes ready for the upcoming regulations?

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