Protecting Consumer Rights and Ensuring Market Transparency... What Is the Future of the Ticket Resale Market?

[Cover of the Korea Sports Entertainment Law Association's report "A Study on Overseas Cases of Ticket Resale"]

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The Korea Sports Entertainment Law Association (President: Nam Gi-yeon, Professor at Dankook University College of Law) has released a report titled "A Study on Overseas Cases of Performance Ticket Resale," analyzing ticket resale regulations in five major countries and regions including the United States, Canada, the United Kingdom, Japan, and the EU.

This study was conducted following the association's winter academic conference held last November, which focused on ticket resale activities and legal issues. By conducting an in-depth analysis of global regulations and legislative cases, the association aims to explore effective legal and institutional measures applicable domestically.

Currently, South Korea regulates illegal sales, commonly known as scalping, using macro programs through individual laws such as the Performance Act and the National Sports Promotion Act. However, due to limitations in regulatory scope, lack of effectiveness, and insufficient consumer protection, calls for institutional improvements have been steadily raised.

Analysis of overseas cases revealed that most countries, including France, Germany, the United Kingdom, Ireland, and the United States (federal and New York State), explicitly permit ticket resale to protect consumer rights. Regulations mainly focus on information disclosure and consumer protection, with a common trend of prohibiting ticket purchases using illegal software to foster a fair trading environment.

While the United States, Canada, and the EU are strengthening consumer protection, concerns about market confusion due to regulatory differences remain. On the other hand, the United Kingdom and Japan enhance transaction reliability but face criticism for lacking regulatory flexibility. Additionally, some countries impose certain restrictions on resale prices, emphasize consumer protection policies, and enforce reseller obligations such as mandatory information disclosure, highlighting differences among nations.

In contrast, South Korea only enforces basic regulations such as banning the use of macro programs, with a notably insufficient institutional foundation to strengthen consumer protection and market transparency. Accordingly, the report recommends the enactment of a special ticket resale law that integrates fragmented domestic regulations, recognizing legal resale while simultaneously imposing strong regulations against illegal acquisition and sales from a consumer protection perspective.

In particular, the report stresses the necessity of regulations mandating information disclosure, refund policies, and technology-based measures to prevent hoarding for transparent transactions as essential consumer protection measures. It also emphasizes the need for the government to mandate technical security obligations for resale platforms capable of detecting and controlling technologies that enable illegal purposes, such as macro prevention technologies, and to establish a legal framework that facilitates smooth cooperation between the government and platforms.

Furthermore, ticket resale operators should have an obligation to provide truthful information, platform operators should play a role in monitoring unfair transactions, and there should be legal provisions requiring cooperation with the government and judicial resolution requests, similar to the United Kingdom. The report also suggests considering price caps and licensing obligations to prevent market monopolies and ensure transparency, while the government could approve commission rates for transactions conducted on limited platforms.

President Nam Gi-yeon stated, "As damages caused by illegal ticket sales increase, the introduction of effective domestic regulations and legislation is urgently needed." He added, "By recognizing legal resale and strongly regulating illegal acquisition and sales, we hope to protect consumer rights, restore market trust, and establish a sustainable growth foundation for the performance and sports industries through regulatory and legal measures."

Meanwhile, the report on overseas cases of performance ticket resale is available for download on the association's website.

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