The Sale of Tickets (Cultural, Entertainment, Recreational and Sporting Events) Act 2021

Background

The Sale of Tickets (Cultural, Entertainment, Recreational and Sporting Events) Act 2021 (the ‘Act’) commenced on 31 July 2021 making it illegal in Ireland to sell tickets for live events, matches, and concerts for more than face-value. This law was introduced at a time where demand for live events was at an all-time high following Covid-19 and genuine fans were losing the opportunity to purchase tickets at a fair price. Former Taoiseach Leo Varadker said that the “new law protects against profiteers seeking to unfairly gain from the resale of tickets who do not contribute in any way to benefit those with the talent and skills that the rest of society wish to appreciate at an affordable price.”

The preamble to the Act expressly states its intention being:

• to promote fairer access to tickets for cultural, entertainment, recreational and sporting events by prohibiting the sale or advertisement for sale of ‘tickets’ at a price exceeding its original sale price for events taking place in ‘designated venues’ or ‘designated events’;
• to void any contract terms which excludes or limits the sale of tickets for a price not exceeding the original sale price; and
• to provide for certain information requirements where a primary ticket seller sells or advertises for sale, or a secondary ticket seller advertises or offers for sale, tickets or ticket packages for events taking place in ‘designated venues’ or for ‘designated events’.

1. SELLERS/OPERATORS

The Act defines a secondary ticket seller as:

‘a person who sells a ticket or ticket package that was originally sold by, or otherwise originally made available by or through, a primary ticket seller;’

and a secondary ticket operator as:

1. a person who owns or manages a secondary ticket marketplace or is responsible for its operation; or
2. a person acting for or on behalf of such person.

2. TICKETS/DESIGNATED VENUE/DESIGNATED EVENT 

Tickets

The Act contains a wide and essentially unrestricted definition of ‘Ticket’ being:

‘a card, pass, paper, document, device, whether in electronic form or otherwise, that on presentation entitles the holder to gain admission to the event’.

Designated Event

A ‘designated event’ is defined at Section 9 (1) of the Act as being an event that is so designated for the purposes of the Act by the Minister for Enterprise, Trade and Employment (the ‘Minister’) on application made by an event organiser or venue operator ‘if, having regard to the nature of the event, the applicant is of the reasonable opinion that the event may give rise to the sale of tickets for a price exceeding the original sale price by a secondary ticket seller’. 

The decision as to whether to grant or refuse an application for designated status for the purposes of the Act is at the discretion of the Minister.

In addition, in accordance with Section 9 (7) of the Act, the Minister may, in the absence of any application having been made by an event organiser, designate an event, if, having consulted with the event organiser or venue operator, the Minister is satisfied as regards the nature of the event and that designation is in the public interest.

Designated Venue

A ‘designated venue’ is defined at Section 7 (1) of the Act as being a venue that is so designated for the purposes of the Act by the Minister on application made by a venue operator if:

1. the venue has a capacity to hold 1,000 persons or more; and
2. the venue applicant is of the reasonable opinion that the venue will hold events which may give rise to the sale of tickets or ticket packages by a secondary ticket seller for a price exceeding the original sale price.

Again, the decision as to whether to grant or refuse an application for designated status in respect of a venue for the purposes of the Act is at the discretion of the Minister.

In addition, in accordance with Section 7 (6) of the Act and as with a designated event, the Minister may designate a venue in the absence of any application if after consultation with the event venue operator the Minister is satisfied as regards the size of the venue and that designation is in the public interest

The designated status of an event of venue may be revoked by the Minister at the Minister’s discretion in certain prescribed circumstances in accordance with the Act.

An official central register of designated venues and designated events is required to be established (and maintained) and published by the Minister pursuant to Section 14 of the Act and this statutory register is currently published on the Department of Enterprise Trade and Employment website https://enterprise.gov.ie/en/publications/register-for-designation-of-venues-and-events.html.

3. PRICING RESTRICTION ON SALE/ADVERTISING FOR SALE AND INFORMATION REQUIREMENTS

A primary ticket seller is prohibited under Section 16 of the Act from selling tickets for a relevant event without the following information:

1. that the date of the ticket or ticket package is for a relevant event;
2. that the sale of the ticket or ticket package for that event for a price exceeding the original sale price is prohibited;

and the above information must be provided:

1. in any advertisement for the sale of the ticket or ticket package;
2. on the face of the ticket where the format of the ticket permits the information to be provided in this manner; and
3. on a durable medium supplied with the ticket or ticket package where the format of the ticket does not permit the information to be provided in the manner specified in paragraph (b).

Pursuant to Section 15 of the Act a secondary ticket seller is expressly prohibited (and liable to be found guilty of an offence) from selling or advertising (or causing the advertisement) for sale, tickets or ticket packages for a designated event or event taking place in a designated venue event (‘relevant event’) at a price which exceeds the original sale price.

The statutory obligations imposed on a secondary ticket operator in respect of the sale of tickets are contained at Section 17 (2) of the Act wherein it provides that a secondary ticket operator shall ensure that a ticket for a relevant event is not advertised or offered for sale on the operator’s secondary ticket marketplace without the secondary ticket seller providing, in the advertisement, the information specified at Section 17 (3) being:

1. The original sale price of the ticket or the ticket package;
2. The information necessary to enable the identification of the particular seat or standing area to which the ticket or ticket package entitles the ticket holder to gain admission, including where applicable the set row and block number and any clearly identifiable unique ticket number.

4. CHARITABLE EXEMPTION

There is an exemption from the prohibitions under the Act in respect of the sale or advertising of tickets or ticket packages for events for charitable fundraising purposes by or on behalf of a charitable organisation or amateur sports club.

5. CONTRAVENTION/DEFENCES

The Act provides at Section 23 (1) that a secondary ticket seller or operator found guilty of contravention of the Act shall be liable on summary conviction:

1. in the case of a first offence to a class B fine [not exceeding €4,000] or to imprisonment for a term not exceeding six months, or both; and
2. in the case of a second or subsequent office, to a class A fine [not exceeding €5,000] or to imprisonment for a term not exceeding 12 months, or both.

In addition, Section 23 (2) provides where a secondary ticket seller is found guilty of contravention of the Act and convicted on indictment it could be liable to a fine not exceeding €100,000 or imprisonment for a term not exceeding two years, or both.

The Act expressly provides at Section 23 (4) that where the offence is committed by a body corporate and is proved to have been done with the consent or connivance or wilful neglect of any officer (or other person holding a managerial role) such person will also be deemed to have committed the offence and liable to be punished in the same manner.

In proceedings for a breach under the Act, it shall be a defence to demonstrate that all reasonable efforts were made to ensure compliance with the relevant provisions alleged to have been contravened and also, in proceedings against a secondary ticket operator, it shall be a defence, where relevant, that the operator was providing an online information society service consisting of the transmission of a communication network (but not the initiator of the transmission) or the automatic storage of information (without the ability to modify such information) albeit that such an operator does have an obligation to remove or disable access to information on obtaining knowledge or awareness of illegal activity (Sections 24-25).

For further information please contact Bríd McCoy (Partner) or your usual AMOSS contact.