Minister: Anti-scalping provisions to be added to Price Control Act

KUALA LUMPUR, Oct 13 — The Ministry of Domestic Trade and Cost of Living is actively developing a dedicated legal framework to tackle ticket scalping, with new regulations anticipated to be implemented by next year, according to Parliament this morning. Minister Datuk Armizan Mohd Ali disclosed that anti-scalping provisions could potentially be inserted under Section 15(1) of the Price Control and Anti-Profiteering Act, granting the authority to introduce measures aimed at curbing unfair pricing and resale practices.

During Question Time, he mentioned that the Ministry is currently engaging with event organizers and conducting benchmarking studies with the aim of establishing a legal framework. Section 15(1) within the Price Control and Anti-Profiteering Act empowers the minister and the Ministry to create mechanisms in the form of regulations to curb scalping activities.

Scalping, a term often used to describe the act of purchasing highly sought-after items like concert tickets, shoes, or clothing at retail prices and subsequently reselling them at significantly higher rates, leveraging on scarcity and demand, has long existed in Malaysia. However, intensified criticism erupted when British rock band Coldplay performed in Kuala Lumpur in 2023, with "scalpers" procuring tickets in large quantities and subsequently reselling them at exorbitant rates.

For instance, the standard CAT 1 tickets, originally priced at RM1,288, were later listed for up to RM43,000, eliciting widespread outrage. Investigations indicate that scalping in Malaysia has progressed from individuals reselling a few extra tickets to an organized, tech-driven operation impacting multiple sectors as scalpers now leverage internet bots to make bulk purchases swiftly, bypassing virtual waiting rooms to buy large batches of tickets within seconds before human buyers even reach the payment page.

Armizan clarified that the proposed anti-scalping provisions would encompass the definition of scalping itself, methods to regulate bulk ticket purchasing activities, and the enforcement of the use of identification or names on ticket purchases. He explained that bulk ticket purchases, whether facilitated by bots or by individuals, represent the secondary sales layer that often arises in these situations, thus posing the potential for scalping.