CONSUMER PROTECTION LAWS AND SPORTS TICKETING

ABSTRACT

This research paper delves into the challenges presented by sports ticketing industry and its adverse impact on consumer rights. It provides a nuanced explanation of laws that can be enforced to regulate the sports ticketing industry, in the absence of direct Central law dealing with this issue. States like Rajasthan have enacted their own laws to address this problem and set an example for the Centre to enact a comprehensive legal framework. This paper further explains the consumer rights provided to citizens by Consumer Protection Act, 2019 and analyses key legal precedents shaping the course of sports ticketing and consumer rights. Then it further examines the efforts taken by various countries to regulate the sports ticketing industry. Finally, the paper concludes by offering suggestions for reform and a way forward, advocating for a comprehensive, unified approach to regulation, which balances legal clarity, consumer protection, and economic benefits.

KEYWORDS

Digital tickets, Bots, Consumer Protection, Indian Contract Act, Bhartiya Nyaya Sanhita, transparency, fairness, E-commerce.

INTRODUCTION

Imagine waiting months to watch your favourite cricket match or thrilling football game but as soon as you try to purchase the tickets they were already sold out and to add insult to your injury you found same tickets being sold at shady resale websites at inflated 5x or 10x price. This whole process is called ticket scalping, where a large number of tickets are purchased, only to be resold at a higher price. Such practices create high demand for tickets, causing scarcity and inflated prices. These practices created significant controversies during Cold Play and Diljit Dosanjh concerts, where tickets were sold at much higher prices. There were instances where Cold Play concerts tickets were even sold for lakhs of rupees that were originally placed at much lower price. In 2023, India hosted the Cricket World Cup and there were numerous instances where tickets in secondary markets were sold in lakhs with most expensive ticket for India and Pakistan match. Although there is no direct central law in India that regulates ticket reselling and can protect consumer rights, but there are laws like Consumer Protection Act of 2019[1], Indian Contract Act 1872[2], and Bhartiya Nyaya Sanhita 2023[3] which can intervene and rescue consumer rights. This article will dive deeper into these laws and key judicial decisions that can shape the future of consumer protection laws and sports ticketing.

DEFINITIONS AND CONSUMER RIGHTS

Section 2(7)[4] of Consumer Protection Act,2019 defines consumer as ANY person who:

Buys any goods for a consideration paid or promised or partly paid and partly promised, or under any system of deferred payment, and includes any user of such goods other than the person who buys such goods, when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for any commercial purpose;
Hires or avails of any service for a consideration paid or promised or partly paid and partly promised, or under any system of deferred payment, and includes any beneficiary of such service other than the person who hires or avails of the service, when such service is made with the approval of the person hiring or availing the service, but does not include a person who avails of such service for any commercial purpose.

In Explanation, it is stated that “Commercial purpose” does not include the use of goods and services for personal consumption, or use by a consumer for the purpose of self-employment. And expression “buys any goods” and “hires or avails any services” includes online or offline transactions.

Consumer Rights

Section 2(9) of Consumer Protection Act 2019[5] enumerates some consumer rights which includes,-

Right to be protected against the marketing of goods, products or services which are hazardous to life and property;
Right to be informed about the quality, quantity, potency, purity, standard and price of goods, products or services, as the case may be, so as to protect the consumer against unfair trade practices;
Right to be assured, wherever possible, access to a variety of goods, products or services at competitive prices;

(iv) right to be heard and to be assured that consumer’s interests will receive due consideration at appropriate for a;

Right to seek redressal against unfair trade practice or restrictive trade practices or unscrupulous exploitation of consumers; and
Right to consumer awareness;

SPORTS TICKETING INDUSTRY AND MAJOR CHALLENGES

At global level sports ticketing industry is valued at US$ 15.18 Billion in 2023 and is expected to grow from USD 17.29 Billion in 2024 to USD 48.95 Billion by 2032, growing at unprecedented CAGR of 13.9% during forecast period of (2025 – 2032)[6]. In India sports ticket market is expected to reach US$ 2,129.2 million by 2030[7]. If we look at it segment-wise then digital tickets have generated the largest revenue and are registering the fastest growth among all sectors. With rise in technological advancements, the size of digital sports ticket market has shown unprecedented growth, with tickets ranging from concerts to sporting events all are available online.

As the industry thrives it is also facing significant challenges such as:

Issue of ticket scalping – Ticket scalping which is also known as ticket touting is one of the most significant challenge faced by the industry. In this practice, a large number of tickets are bought with the help of bot and are resold at inflated prices, often creating inequality where only wealthy individuals can afford to enjoy these events thus driving the lower-income individuals out. Such practices not only create inequality but also generates artificial demand and scarcity issues.
Counterfeit tickets – Besides ticket scalping, the industry also suffers from the challenges posed by counterfeit tickets, as with the advancements in technology it has become more difficult to spot fake tickets, which not only violates consumer rights but can also lead to individuals missing once in a lifetime opportunity. If the problem has been accelerated by technology, then it is only through the use of advanced technology that this problem can be addressed.
Unfair terms and conditions – Another significant problem in the sports ticketing industry is unfair terms and conditions when selling tickets as most of the tickets come without refund policy which may violate consumer rights. But in some instances, a refund option is available if the event gets cancelled or rescheduled.

LEGAL FRAMEWORK

In India, regarding sports ticketing there is no direct central law, but various laws like Consumer Protection Act 2019, Bhartiya Nyaya Sanhita 2023, Indian Contract Act 1872 and Information Technology Act 2000 can play a crucial role in regulating sports ticketing industry and safeguarding Consumer rights.

1.Consumer Protection Act,2019 – This act is one of the primary laws which protects the consumer rights in India like right to be heard, right to be assured, right to be informed and right to seek redressal. This act can address issues in sports ticketing like ticket scalping, counterfeit tickets and can protect the rights of individuals in refund cases when an event gets cancelled or postponed.

Unfair trade practice, section 2(47)[8]– This section deals with unfair trade practices which are adopted by the sellers of goods and services to deceive consumers. Under this section consumer can file their grievances about inflated prices of the tickets far above the original prices. Selling tickets at inflated prices and creating artificial demand may Constitute unfair trade practices.
E-commerce section 2(16)[9]– According to section 2(16) E-commerce refers to “buying or selling of goods or services, including digital products, over a digital or electronic network.” So this section can be extended to cover the sale of tickets which are sold from online platforms and can provide Protection to the consumer
Restrictive trade practices section 2(41)[10]– This section provides protection to the consumers from the trade practices which tend to bring manipulation of price or affects the supply or delivery. This section becomes significant in dealing with artificial demand for sports tickets created by some individuals to gain profits.

2. The Indian Contract Act,1872- This act is of significant importance while dealing with consumer protection and sports ticketing as The Contracts Act governs agreements and contracts including goods and services. Specific sections of contract act can be enforced like:

Fraud (section 17)[11]– This section can rescue consumer rights in the cases where counterfeit tickets are sold to consumers which is one of the significant problem in sports ticketing.
Misrepresentation (section 18)[12]– If sports ticketing platforms misrepresent some key information, falsely advertise or hide important key terms of the contract then this section can be enforced.
Compensation for loss or damages caused by breach of contract (section 73)[13] – If a party suffers loss from breach of contract, in that case the party is entitled to compensation. This section can be invoked if due to a cancelled sporting event party suffers from losses like travel and accommodation expenditure then this section can be invoked.

3. Bhartiya Nyaya Sanhita 2023- Bhartiya Nyaya Sanhita can also be enforced to deal with malpractices adopted by shady platforms that resell tickets at inflated prices like:

Cheating (section 318)[14] – If buyers are deceived of original information, key terms of the contract or through counterfeit tickets then this section can be enforced
Criminal Conspiracy (section 61)[15] – If in an organised way the artificial demand for tickets is being created like using bots then section 61 can be enforced
Forgery (section 336)[16] – This section can be enforced where counterfeit tickets are created to deceive buyers as this section deals creation of a false document or electronic record with the intent to cause harm or commit fraud

State Laws

In addition to central laws, state laws also play a crucial role in protecting consumer rights and regulating sports ticketing, such as The Rajasthan Entertainments and Advertisements Tax, 1957[17] which explicitly prohibits the reselling of tickets. Such acts become crucial in order to protect consumer rights and to regulate sports ticket market. Ticket scalping is one of the major problems which infringes the rights of individuals. Then these laws safeguard individuals rights these state laws set good example for the enactment of central law directly dealing with this issue.

KEY JUDICIAL PRECEDENTS

1. Amit Vyas V. Union of India (2025)[18]

A PIL was filed by a city lawyer name Amit Vyas seeking law to curb online ticket scalping and black marketing which took place at major concerts and events on online booking platform. The Petitioner further states that such unethical and illegal practices deprive genuine consumers of their fundamental right to have equal opportunity of buying ticket access to entertainment. Bombay High Court dismissed the plea, as it is out of courts ambit to form laws as it is a legislature domain. The court observed that

“While the petitioner’s grievances highlight the urgent need for regulatory intervention to address the challenges posed by the evolving online ticketing industry, the responsibility for creating a statutory framework lies with the legislature,”

But the court noticed the significance of the issue and called for urgent reforms to regulate this market.

2. Mandeep Singh v. UT of Chandigarh,2015[19]

In Mandeep Singh v. UT of Chandigarh, the petitioner, a freelance software developer, was accused of reselling World Cup semi-final tickets at an inflated price. The tickets were originally priced at Rs. 30,000 but were found being resold for Rs. 1,800 each. The police, after placing an online bid and negotiating a deal with the petitioner, arrested him when the transaction was completed.

The petitioner sought to quash the FIR, arguing that charges under Section 66-A of the IT Act (which had been struck down by the Supreme Court in Shreya Singhal v. Union of India[20] and Section 420 IPC (for cheating) were not applicable. The Court agreed, noting that there was no deceit or inducement involved since the petitioner openly disclosed the higher price, and there was no legal restriction on reselling the tickets. Therefore, the FIR was quashed.

3. Rohan Gupta V. Union of India & Ors, 2024[21]

A PIL was filed in the Delhi High Court challenging the illegal practice of ticket scalping, where tickets are sold at inflated prices. The petition argued that unethical ticket scalping undermines individuals’ rights to enjoy community events and promotes black marketing, thereby infringing on the right to equal and fair access. Acknowledging the petition, the court issued notices to the Centre, the Delhi Government, and several ticket reselling platforms.

These court decisions further enhance consumer trust in protecting their rights against malpractices in sports ticketing industry. These judicial decisions become crucial in the absence of direct Central legislation.

GLOBAL TRENDS

Various countries around the globe have formulated the laws to regulate the sale of tickets online and to combat practices like ticket scalping. In the United Kingdom, section 90 of Consumer Right Act 2015[22], regulates the resale of tickets through online platforms. In the USA, the BOTS (Better Online Ticket Sale) Act, 2016[23] regulates the purchase of tickets in large number and reselling them at inflated prices. Besides these countries various other countries also have laws to regulate ticket scalping. Taking example from these countries, India should also form direct central law to regulate ticket scalping and safeguards consumer rights.

RECOMMENDATIONS AND WAY FORWARD

Formation of Direct Central Legislation – In India there is an urgent need to form direct central legislation regulating ticket, scalping and black marketing because such unethical practices undermine the rights of consumers. A limit should be set on resale price of tickets. For instance, in Australia, tickets can not be resold 10 percent above original value. Therefore, through enactment of specific Guidelines and regulations these unethical practices can be tackled.
Strict Enforcement mechanisms- Authorities should actively monitor the activities of shady websites that sell tickets at inflated prices and create artificial demand thus infringing consumer rights. Heavy fines and penalties should be imposed on sites that promotes black marketing of tickets.
Use of advanced technology- If technology is responsible for creating problems in modern world, such as counterfeit tickets, then technology can be deployed to prevent these practices as well like QR code verification, creating digital tickets with some specifications which are difficult to copy and by using Anti-Bot technology, which can prevent bots from purchasing tickets in bulk.

CONCLUSION

Thus it can be concluded, that problem of black marketing in sports tickets is of significant concern as it undermines the consumer and fundamental rights of individual. Due to the lack of Direct Central laws, unethical practices such as ticket scalping, creation of artificial demand and inflated ticket price continues to rise. Recently, these practices were noticeable during Cold Play and Diljit Dosanjh concerts. In India, cricket is a revered sport, and it is also no short of instances where problems related to ticket scalping have been noticed. Furthermore, countries like the USA, the UK and Australia have enacted laws to tackle such unethical practices. Taking inspiration from these countries, India should also enforce strict regulatory mechanisms to curb these practices and to safeguard consumer rights. These regulations would not only regulate the market, but also enhance consumer trust and ensure fair access to events.

REFERENCES

Pooja Tidke & Rhea Rao, Ticket to Jail: Addressing Ticket Scalping in India, MONDAQ (Nov. 27, 2024), https://www.mondaq.com/india/consumer-law/1550540/ticket-to-jail-addressing-ticket-scalping-in-india.(last visited Jan 26, 2025)
Understanding the Legal Framework Around Ticket Scalping in India, ANM GLOBAL (Nov. 15, 2024), https://anmglobal.net/understanding-the-legal-framework-around-ticket-scalping-in-india/.(last visted Jan 26, 2025)
Abanti Bose, Consumer Protection Act, 2019, iPLEADERS (Apr. 29, 2022), https://blog.ipleaders.in/consumer-protection-act-2019-2/.
The Economic Times, Coldplay 2025 Concert: HC Dismisses PIL Seeking Guidelines Against Black Marketing & Ticket Scalping, ECONOMIC TIMES (Jan. 10, 2025), https://m.economictimes.com/news/india/coldplay-2025-concert-hc-dismisses-pil-seeking-guidelines-against-black-marketing-ticket-scalping/articleshow/117112056.cms.(last visited Jan 26, 2025)
Nupur Thapliyal, Delhi High Court Issues Notice on PIL Against Ticket Scalping Over Recent Music Concerts, LIVE LAW (Oct. 9, 2024), https://www.livelaw.in/high-court/delhi-high-court/delhi-high-court-issues-notice-on-pil-against-ticket-scalping-over-recent-music-concerts-272023.(last visited Jan26, 2025)

[1] Consumer Protection Act, 2019, No. 35, Acts of Parliament, 2019

[2] Indian Contract Act, 1872, No. 9, Acts of Parliament, 1872

[3] Bhartiya Nyaya Sanhita, 2023, No. 45, Acts of Parliament, 2023

[4] Consumer Protection Act, 2019, No. 35, Acts of Parliament, 2019, § 2(7)

[5] Consumer Protection Act, 2019, No. 35, Acts of Parliament, 2019, § 2(9)

[6] Available at SkyQuest Technology Consulting Pvt. Ltd., Sports Events Tickets Market Insights, Trends, and Forecasts for the Period 2025-2032, https://www.skyquestt.com/report/sports-events-tickets-market (last visited Jan. 26, 2025)

[7] Available at Grand View Research, India Sports Events Tickets Market Size & Outlook, 2030, https://www.grandviewresearch.com/horizon/outlook/sports-events-tickets-market/india (last visited Jan. 26, 2025)

[8] Consumer Protection Act, 2019, No. 35, Acts of Parliament, 2019, § 2(47)

[9] Consumer Protection Act, 2019, No. 35, Acts of Parliament, 2019, § 2(16)

[10] Consumer Protection Act, 2019, No. 35, Acts of Parliament, 2019, § 2(41)

[11] Indian Contract Act, 1872, No. 9, Acts of Parliament, 1872, § 17

[12] Indian Contract Act, 1872, No. 9, Acts of Parliament, 1872, § 18

[13] Indian Contract Act, 1872, No. 9, Acts of Parliament, 1872, § 73

[14] Bhartiya Nyaya Sanhita, 2023, No. 45, Acts of Parliament, 2023, § 318

[15] Bhartiya Nyaya Sanhita, 2023, No. 45, Acts of Parliament, 2023, § 61

[16] Bhartiya Nyaya Sanhita, 2023, No. 45, Acts of Parliament, 2023, § 336

[17] The Rajasthan Entertainments and Advertisements Tax, No. 22 of 1957

[18] Amit Vyas v. Union of India, (2025) 4 SCC 187

[19] Mandeep Singh v. State of U.T. Chandigarh, Crl. Misc. No. M-21747 of 2011, Punjab and Haryana High Court

[20] Shreya Singhal v. Union of India, (2015) 5 SCC 1

[21] Rohan Gupta v. Union of India & Ors., W.P.(C) No. 14326/2024, CM Appl. No. 59964/2024, Delhi High Court

[22] Consumer Rights Act 2015, c. 15, § 90 (U.K.)

[23] Better Online Ticket Sales (BOTS) Act of 2016, Pub. L. No. 114-274, 130 Stat. 1377

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