Leading music promoters have urged Culture Secretary Jeremy Hunt to impose a 10 percent mark-up on the sale of second-hand tickets to major events.
A delegation met Hunt this week to press their case, supported by Labour MP Sharon Hodgson who is promoting a private member's bill in parliament to limit ticket re-sale profits.
Ticket agencies have warned such a cap would merely drive more sales towards unregulated touts where consumers have no protection.
Edward Parkinson, director of ticket exchange website Viagogo, said: A cap on prices is well-intentioned, but ultimately flawed -- you can't regulate the touts who would still charge whatever they want.
All this would do would be to increase the number of tickets being sold back in the pubs, clubs and car parks of the black market.
The cap would also create a number of practical problems for eBay customers, a spokeswoman for the online auction website told Reuters, which supports its customers' rights to resell tickets.
Limiting legal resale on protected sites online, would drive more sales towards unregulated 'touts' where consumers have no protection whatsoever.
Our research shows that most sellers on eBay (9 out of 10) are selling five or less tickets a year, suggesting most sales are from individuals rather than those making a living from it.
A government spokesman said it was an issue the Culture, Media and Sports Select committee had considered extensively, but had no plans to regulate.
When this issue has been looked at in the past, it has been clear that most people favour the introduction of tighter operating practices by primary ticket distributors.
But he added: Unless there is a demonstrable market failure there is not a case for government action.
(Created by Li-mei Hoang)