A committee of MPs has criticised ticket resale websites including Seatwave and Viagogo for collaborating with sophisticated, organised ticket touting operations. Published Thursday morning, the House of Commons culture, media and sport select committee‘s report examines the so-called “secondary tickets” market. Though ticket touting is not a new phenomenon, “the growth of the internet has transformed and expanded it”, the report says, pointing to a new generation of “bedroom touts” and to organised gangs, both of whom can now snap up tickets and immediately sell them at a premium through sites like eBay.

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The committee criticised London-based Seatwave and Viagogo for advertising “futures tickets” for the 2008 rugby Six Nations championship back in June, though they had not yet even been printed (they’re online for up to £495 each). And it claimed eBay (NSDQ: EBAY) refused to open its books to have the extent of the problem scrutinised. Seatwave CEO Joe Cohen told paidContent:UK: “All the hearsay about futures selling and criminal gangs are a red herring to move the argument away from this core question ... whether fans should have the right to sell on their ticket if they find they can’t go to an event. We think they should because it is clearly in fans’ interests. The promoters would like to remove the right of fans so they can make more money by holding back tickets to sell to the VIP and corporate markets at a premium.”

Seatwave estimates the UK secondary tickets market at £1 billion, operated by the likes of eBay, Viagogo, Ticketnova, MyTicketMarket, GET ME IN, Gumtree, itself, Scarlet Mist and Tickex. There’s a lot of money at stake in what is still a nascent segment. Headed by StubHub originator Eric Baker, Viagogo raised over $50 million (£25 million) by August; Seatwave scored an $8 million (£4 million) second round in June.

But it looks like the segment could escape regulation, which the committee says should be “a last resort” and which it leaves the government to decide upon. It’s strongest message: “We urge eBay and other operators in the secondary market to follow the lead of those marketplaces which already refuse to list tickets for free events or tickets which have been allocated for specific groups, such as children, the disabled or amateur sports clubs. There is no arguable justification for profiteering from these.” Cohen added: “The committee was right not to fall for the promoters’ con-job.”