Tackling ticket scalping the Coldplay way

Does the recent ticket ruckus concerning concerts by Coldplay and Diljit Dosanjh underline the need for a law to deal with ticket scalping in India?.—.NOT to rub salt in the wounds, but did you also miss out on Coldplay tickets after being stuck in that long digital queue?.The recent hullabaloo over tickets for concerts by Coldplay and Diljit Dosanjh has highlighted the gaps in laws governing ticket reselling, also known as ticket scalping or ticket touting..There has been a noticeable shift in how the new generation in India thinks and behaves. Gone are the days when people did not consider it worthwhile to spend money on concerts, let alone buy tickets at exorbitant prices in the black market..With more disposable income, today's youth view attending concerts as a status symbol and something to brag about among friends. This shift has brought people beyond music lovers into the ticket-buying scene, disrupting the economic balance of demand and supply..There is a limited number of seats but an unlimited number of 'fans' waiting to get themselves a place in the venue. Making the most of this situation, some people have been buying tickets in bulk from the platforms that are the first or primary sellers and then selling them on secondary platforms that allow for the reselling of the tickets at skyrocketing prices..How has this been possible when BookMyShow, the original ticker-selling platform in these instances, allowed only four tickets to be bought using the credentials of one person?.“With more disposable income, today's youth view attending concerts as a status symbol and something to brag about among friends..Well, it seems that it was not people but rather bots who were ahead of you in the queue, grabbing multiple tickets and impersonating different people..The platform recently lodged a first information report (FIR) against unauthorised platforms and individuals involved in ticket reselling. At this point, it is crucial to evaluate the effectiveness of existing laws in addressing ticket scalping and incorporating it within their scope..The hidden market balancer.As per an economic theory, while ticket scalping may seem unethical, it fulfils the role of clearing the market. Performers and event organisers intentionally set ticket prices lower to ensure they sell out quickly..Also read: Should sexual harassment protection not be extended to gig work?.Once tickets are sold out, the public tends to seek them out with more urgency, eager to attend the event. Scalpers step in by selling tickets to those who either missed out on the initial sale or were initially hesitant to buy. The original ticket prices are not set at the higher rates that scalpers charge or where the market might naturally balance, as performers prefer to avoid the risk of unsold tickets..This theory might not be true in cases where demand is almost ten times or more than the supply. That is, while the tickets to Coldplay and Diljit Dosanjh concerts were very limited, the demand was excessive because of the huge size of India's population..Owing to this hyperinflated demand in the market, the tickets would have been sold out naturally at the prices set originally, without the aid of any external agents such as ticket scalpers. Scalping in these contexts only made benefit of the situation and earned excessive profits rather than performing the function of catalysts helping in expediting market clearance..From an economic standpoint, while ticket scalping may have served a purpose a decade ago, it is no longer as desirable in today's context. Changing market dynamics and advances in technology have reduced the need for scalping, as more efficient systems for ticket distribution and dynamic pricing models have emerged..This shift highlights the need for legislation that specifically penalises ticket scalping, ensuring fair access to tickets and protecting consumers from exploitation..What makes scalped tickets illegal today?.While there is no parliamentary legislation expressly addressing the issue of ticket scalping, some existing laws may be made applicable to this situation..“The platform recently lodged an FIR against unauthorised platforms and individuals involved in ticket reselling..The issue here concerns the consideration sought for reselling tickets, which is often unjust and unreasonable. The Indian Contract Act, 1872 does not directly address this, as it only requires consideration for a valid contract but does not deal with the adequacy of such consideration..Therefore, the Contract Act may be made applicable only if the primary platform selling the tickets lays out some specific instructions in this regard or if the tickets are made non-transferable..Also read: David defeats Goliath: Pune court ruling against US 'Burger King' in favour of local competitor.It might seem that this situation can be covered under "unfair trade practices" under the Consumer Protection Act, 2019, but it is only partially true because it fails to cover situations where the ticket reselling takes place between two persons, both of whom are aware of the actual price at which the ticket was sold last and the seller is not "falsely" trying to sell it or "misrepresenting" in any way..The buyer knows that the price at which they are about to buy the ticket is way more than the actual price of the ticket but they still choose to buy it because of the unavailability of tickets elsewhere..Thus, the scope of the Consumer Protection Act is limited, as it can only be invoked in cases where reselling involves fraudulent practices or the dissemination of misleading information..It is not a situation of non-liquet (lack of a suitable law), since some state legislations attempt to make ticket scalping illegal. Furthermore, ticket scalping is sometimes dealt with under public nuisance laws due to the chaos that reselling tickets creates..However, the level of ticket reselling observed during recent concerts highlights the urgent need for legislation addressing this issue nationwide..Global solutions: Where do we go from here?.Australia, Japan and Canada, among other countries, have strict laws against ticket scalping..Meanwhile, alternative ways to put a check on ticket scalping can be to make tickets non-transferable. This will enable only the person who bought the ticket originally to use it and not sell it to someone else or even give it for free to an acquaintance..Performers typically do not favour this approach, as it could lead to a not-so-fully-packed venue if people who purchased tickets are unable to attend for various reasons..“Performers typically do not favour this approach, as it could lead to a not-so-fully-packed venue if people who purchased tickets are unable to attend for various reasons..Another way to stop ticket scalping is by linking tickets purchased to the owner so that they are easily traceable. This will help in identifying the scalpers who resell the tickets at abnormally high prices..Also read: World Consumer Rights Day: Consumer behaviour, technology and the law.This will come to the rescue of people who are unable to attend the concert at the last moment and want to sell the ticket, maybe just at the price at which they bought it or even lower..Temporary guidelines to report a person trying to resell tickets at a price higher than their base value can also be instituted..In conclusion, addressing the issue of ticket scalping requires a mix of solid laws and creative solutions. The recent concerts by Coldplay and Diljit Dosanjh have highlighted how the absence of comprehensive regulations in India allows for exploitative behaviour that strays from the original purpose of scalping as a market-balancing mechanism..With demand for tickets far outstripping supply, scalpers are taking advantage of the situation, inflating prices without providing any real benefits to consumers or the music industry..To combat this, we could consider implementing strategies like non-transferable tickets, traceable ownership and guidelines for reporting resales. Other countries have successfully tackled this issue through strong legal frameworks that ensure fair access to tickets and protect fans from exorbitant prices..It is high time India adopted similar measures to effectively confront the growing challenge of ticket scalping.

Tackling ticket scalping the Coldplay way

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