MPs have rejected a call for a blanket ban on internet ticket touts but said websites such as Ebay and Viagogo that conducted sales of unwanted tickets must "clean up their act".

However, although the House of Commons Culture, Media and Sport Select Committee, which has been investigating the issue, called for an end to the "distasteful" practice of allowing touts to sell on tickets for free or charity events, it also criticised promoters.

"We were told that primary sources rarely offer a guaranteed refund to ticket-holders," said the committee's report.

At present, buying and selling second-hand tickets, except for football games and the 2012 Olympic Games, is not illegal in England and Wales.

The report said the failure to provide adequate refund systems for fans who genuinely cannot attend events have fueled the market for selling on tickets, which is now thought to be worth around £1bn a year.

It also pointed out recent polls that showed many fans felt these secondary markets were a "godsend"; people could not only recoup their money using other channels such as Viagogo or Ebay or buy tickets for gigs they were desperate to see.

Committee chairman John Whittingdale said: "It would neither be practical nor in the interests of consumers to impose a ban on the onward sale of tickets to events through the secondary market."

Although the committee rejected introducing legislation, which Whittingdale said should remain a "last resort", it did suggest other measures.

One is a "middle way" that would see promoters levy a charge on secondary ti cket sellers in return for a share of the profits they made so artists would benefit as well. The committee also said the Office of Fair Trading (OFT) should draw up this voluntary code of practice and ensure it was enforced through the courts if need be.

The report was welcomed by Ebay which said: “We are delighted that the committee has rejected a blanket ban on ticket resale and upheld consumers’ right to resell spare tickets, although we doubt consumers would support what amounts to a further ‘ticket tax’ to event promoters on top of existing booking fees.”

“We share the Committee’s desire to crack down on the small number of rogue secondary agents who give the secondary market a bad name."