Consumer Rights Bill — Commons Reason

Part of the debate – in the House of Lords at 3:08 pm on 24 February 2015.

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Lords amendment

12: After Clause 32, insert the following new Clause—

Secondary ticketing platforms

Secondary ticketing platforms: seller profiles and ticket information

(1) Secondary ticketing operators must, on the website on which tickets are offered for sale or transfer, provide information concerning the sellers of tickets so that sellers may be easily identified.

(2) Information provided by virtue of subsection (1) must include, but is not limited to—

(a) the name of the seller;

(b) if the seller is an undertaking, its registered number, jurisdiction of registration, registered office address, and if registered outside the United Kingdom, a valid address for service; and

(c) the VAT registration number of the seller, if applicable.

(3) Information provided under subsection (1) must be—

(a) accurate; and

(b) prominently displayed before a buyer is able to complete the purchase of the ticket.

(4) Secondary ticketing operators must disclose clearly and prominently where the seller of a ticket is—

(a) the secondary ticketing platform or a subsidiary undertaking or parent undertaking of the secondary ticketing platform;

(b) a person or persons employed or engaged by the secondary ticketing platform;

(c) other persons connected to employees, directors or shareholders of the secondary ticketing platform, or any of its subsidiary undertakings or parent undertakings;

(d) the event organiser or an agent acting on its behalf;

(e) any other party connected to the organisation of the event.

(5) Where a ticket is offered for sale or transfer through a secondary ticketing platform—

(a) the seller must provide all relevant information about the ticket;

(b) the secondary ticketing operator must publish all relevant information about a ticket in a prominent and clear manner; and

(c) the secondary ticket operator must immediately remove the ticket from sale when it is informed by the event organiser that the information provided is inaccurate or incomplete.

(6) Information to be provided by the seller and published by the secondary ticketing operator for the purposes of subsection (1) must include, without limitation—

(a) the face value of the ticket;

(b) any age or other restrictions on the user of the ticket;

(c) the designated location of the ticket including the stand, the block, the row and the seat number of the ticket, where applicable; and

(d) the ticket booking identification or reference number.

(7) Where tickets are being resold in contravention of the terms and conditions agreed to by the original purchaser, this must be stated prominently by the secondary ticketing platform at every stage of the purchasing process.

(8) Information provided by virtue of this section must be—

(a) accurate; and

(b) prominently displayed before a buyer is able to complete the purchase of that ticket.

(9) For the purposes of this section—

“secondary ticketing platform” means an internet-based facility for the resale of tickets to events in the United Kingdom of Great Britain and Northern Ireland, regardless of the jurisdiction in which the owner of the service is registered;

“secondary ticketing operator” means, in relation to a secondary ticketing platform, the person (whether incorporated or not) operating that secondary ticketing platform;

“ticket” means anything which purports to be a ticket, including any item, tangible or intangible, which grants the holder the right to entry to an event;

“event” means any sporting, music or cultural activity taking place at a specified time and place for which tickets are issued and required for entry or attendance;

“event organiser” means the person responsible for organising and holding an event and receiving the revenue from the event;

the term “undertaking” has the meanings given in section 1161 of the Companies Act 2006 (meaning of “undertaking” and related expressions);

the terms “subsidiary undertaking” and “parent undertaking” have the meanings given in section 1162 of the Companies Act 2006 (parent and subsidiary undertakings);

the term “person” refers to a natural person or a body corporate.

(10) This section will come into force no later than six months after this Act is passed.”

Commons Disagreement and Reason

The Commons disagree to Lords Amendment No. 12 for the following reason—

12A:Because it would be inappropriate to require the provision of information relating to all categories of sellers when a ticket is resold, and because the amendment raises issues of compatibility with existing European Union law.

Motion A

Moved by Baroness Neville-Rolfe

That this House do not insist on its Amendment 12, to which the Commons have disagreed for their Reason 12A, but do propose Amendments 12B to 12H in lieu—

12B: After Clause 86, insert the following new Clause—

“CHAPTER 3B

SECONDARY TICKETING

Duty to report criminal activity

(1) This section applies where—

(a) an operator of a secondary ticketing facility knows that a person has used or is using the facility in such a way that an offence has been or is being committed, and

(b) the offence relates to the re-sale of a ticket for a recreational, sporting or cultural event in the United Kingdom.

(2) The operator must, as soon as the operator becomes aware that a person has used or is using the facility as mentioned in subsection (1), disclose the matters specified in subsection (3) to—

(a) an appropriate person, and

(b) an organiser of the event (subject to subsection (5)).

(3) Those matters are—

(a) the identity of the person mentioned in subsection (1), if this is known to the operator, and

(b) the fact that the operator knows that an offence has been or is being committed as mentioned in that subsection.

(4) The following are appropriate persons for the purposes of this section—

(a) a constable of a police force in England and Wales,

(b) a constable of the police service of Scotland, and

(c) a police officer within the meaning of the Police (Northern Ireland) Act 2000.

(5) This section does not require an operator to make a disclosure to an organiser of an event if the operator has reasonable grounds for believing that to do so will prejudice the investigation of any offence.

(6) References in this section to an offence are to an offence under the law of any part of the United Kingdom.

(7) This section applies only in relation to an offence of which an operator becomes aware after the coming into force of this section.”

12C: Insert the following new Clause—

“Enforcement of section (Duty to report criminal activity)

(1) A local weights and measures authority in Great Britain may enforce the provisions of section (Duty to report criminal activity) in its area.

(2) The Department of Enterprise, Trade and Investment may enforce the provisions of section (Duty to report criminal activity) in Northern Ireland.

(3) Each of the bodies referred to in subsections (1) and (2) is an “enforcement authority” for the purposes of this Chapter.

(4) Where an enforcement authority is satisfied on the balance of probabilities that a person has breached the duty in section (Duty to report criminal activity), the authority may impose a financial penalty on the person in respect of that breach.

(5) A local weights and measures authority in England and Wales may impose a penalty under this section in respect of a breach which occurs in England and Wales but outside that authority’s area (as well as in respect of a breach which occurs within that area).

(6) A local weights and measures authority in Scotland may impose a penalty under this section in respect of a breach which occurs in Scotland but outside that authority’s area (as well as in respect of a breach which occurs within that area).

(7) Only one penalty under this section may be imposed on the same person in respect of the same breach.

(8) The amount of a financial penalty imposed under this section—

(a) may be such as the enforcement authority imposing it determines, but

(b) must not exceed £5,000.

(9) Schedule (Secondary ticketing: financial penalties) (procedure for and appeals against financial penalties) has effect.”

12D: Insert the following new Clause—

“Duty to review measures relating to secondary ticketing

(1) The Secretary of State must—

(a) review, or arrange for a review of, consumer protection measures applying to the re-sale of tickets for recreational, sporting or cultural events in the United Kingdom through secondary ticketing facilities,

(b) prepare a report on the outcome of the review or arrange for such a report to be prepared, and

(c) publish that report.

(2) The report must be published before the end of the period of 12 months beginning with the day on which this section comes into force.

(3) The Secretary of State must lay the report before Parliament.

(4) In this section “consumer protection measures” includes such legislation, rules of law, codes of practice and guidance as the Secretary of State considers relate to the rights of consumers or the protection of their interests.”

12E: Insert the following new Clause—

“Interpretation of this Chapter

(1) In this Chapter—

“enforcement authority” has the meaning given by section (Enforcement of section (Duty to report criminal activity))(3);

“operator”, in relation to a secondary ticketing facility, means a person who—

(a) exercises control over the operation of the facility, and

(b) receives revenue from the facility,

but this is subject to regulations under subsection (2);

“organiser”, in relation to an event, means a person who—

(a) is responsible for organising or managing the event, or

(b) receives some or all of the revenue from the event; “secondary ticketing facility” means an internet-based facility for the re-sale of tickets for recreational, sporting or cultural events.

(2) The Secretary of State may by regulations provide that a person of a description specified in the regulations is or is not to be treated for the purposes of section (Duty to report criminal activity) as an operator in relation to a secondary ticketing facility.

(3) Regulations under subsection (2)—

(a) are to be made by statutory instrument;

(b) may make different provision for different purposes;

(c) may include incidental, supplementary, consequential, transitional, transitory or saving provision.

(4) A statutory instrument containing regulations under subsection (2) is not to be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.”

12F: Clause 91,page 48, line 18, at end insert—

“(1C) Chapter 3B of this Part comes into force at the end of the period of two months beginning with the day on which this Act is passed.”

12G: Schedule 5, page 72, line 8, at end insert—

“section (Enforcement of section (Duty to report criminal activity))(1) or (2) of this Act.”

12H: After Schedule 8, insert the following new Schedule—

“SECONDARY TICKETING: FINANCIAL PENALTIES

Notice of intent

1 (1) Before imposing a financial penalty on a person for a breach of the duty imposed by section (Duty to report criminal activity), an enforcement authority must serve a notice on the person of its proposal to do so (a “notice of intent”).

(2) The notice of intent must be served before the end of the period of 6 months beginning with the first day on which the authority has sufficient evidence of the person’s breach, subject to sub-paragraph (3).

(3) If the person is in breach of the duty on that day, and the breach continues beyond the end of that day, the notice of intent may be served—

(a) at any time when the breach is continuing, or

(b) within the period of 6 months beginning with the last day on which the breach occurs.

(4) The notice of intent must set out—

(a) the amount of the proposed financial penalty,

(b) the reasons for proposing to impose the penalty, and

(c) information about the right to make representations under paragraph 2.

Right to make representations

2 A person on whom a notice of intent is served may, within the period of 28 days beginning with the day after that on which the notice was sent, make written representations to the enforcement authority about the proposal to impose a financial penalty on the person.

Final notice

3 (1) After the end of the period mentioned in paragraph 2 the enforcement authority must—

(a) decide whether to impose a financial penalty on the person, and

(b) if it decides to do so, decide the amount of the penalty.

(2) If the authority decides to impose a financial penalty on the person, it must serve a notice on the person (a “final notice”) imposing that penalty.

(3) The final notice must require the penalty to be paid within the period of 28 days beginning with the day after that on which the notice was sent.

(4) The final notice must set out—

(a) the amount of the financial penalty,

(b) the reasons for imposing the penalty,

(c) information about how to pay the penalty,

(d) the period for payment of the penalty,

(e) information about rights of appeal, and

(f) the consequences of failure to comply with the notice.

Withdrawal or amendment of notice

4 (1) The enforcement authority may at any time—

(a) withdraw a notice of intent or final notice, or

(b) reduce the amount specified in a notice of intent or final notice.

(2) The power in sub-paragraph (1) is to be exercised by giving notice in writing to the person on whom the notice was served.

Appeals

5 (1) A person on whom a final notice is served may appeal against that notice—

(a) in England and Wales and Scotland, to the First-tier Tribunal;

(b) in Northern Ireland, to a county court.

(2) The grounds for an appeal under this paragraph are that—

(a) the decision to impose a financial penalty was based on an error of fact,

(b) the decision was wrong in law,

(c) the amount of the financial penalty is unreasonable, or

(d) the decision was unreasonable for any other reason.

(3) If a person appeals under this paragraph, the final notice is suspended until the appeal is finally determined or withdrawn.

(4) On an appeal under this paragraph the First-tier Tribunal or the court may quash, confirm or vary the final notice.

(5) The final notice may not be varied under sub-paragraph (4) so as to make it impose a financial penalty of more than £5,000.

Recovery of financial penalty

6 (1) This paragraph applies if a person does not pay the whole or any part of a financial penalty which, in accordance with this Schedule, the person is liable to pay.

(2) In England and Wales the local weights and measures authority which imposed the financial penalty may recover the penalty or part on the order of the county court as if it were payable under an order of that court.

(3) In Scotland the penalty may be enforced in the same manner as an extract registered decree arbitral bearing a warrant for execution issued by the sheriff court of any sheriffdom in Scotland.

(4) In Northern Ireland the Department of Enterprise, Trade and Investment may recover the penalty or part on the order of a county court as if it were payable under an order of that court.

(5) In proceedings before the court for the recovery of a financial penalty or part of a financial penalty, a certificate which is—

(a) signed by the chief finance officer of the local weights and measures authority which imposed the penalty or (as the case may be) issued by the Department of Enterprise, Trade and Investment, and

(b) states that the amount due has not been received by a date specified in the certificate,

is conclusive evidence of that fact.

(6) A certificate to that effect and purporting to be so signed or issued is to be treated as being so signed or issued unless the contrary is proved.

(7) A local weights and measures authority may use the proceeds of a financial penalty for the purposes of any of its functions (whether or not the function is expressed to be a function of a local weights and measures authority).

(8) In this paragraph “chief finance officer” has the same meaning as in section 5 of the Local Government and Housing Act 1989.”