Ticket scalping could be facing major upheaval in New York, as a state senator is set to bring forward legislation that, if passed, would outlaw reselling concert tickets for more than they were originally purchased for.
State senator James Skoufis will introduce several proposed amendments to New York’s exiting ticketing laws on Friday morning, the most notable of which focuses on capping resale prices to the original face value ticket price.
“The total price at which a ticket reseller may sell or offer to sell a ticket to a live music concert or music performance may not exceed the total price of the initial ticket, inclusive of all fees and taxes, including those set forth in subdivision one of this section, in connection with the purchase of the initial ticket,” reads a draft of the bill Skoufis’ office shared with The Hollywood Reporter.
The news comes a day after California also announced similar legislation Thursday, marking major potential changes in two of the biggest live music markets in the world.
“The vast majority of the public is sick and tired of being locked out of these concerts,” Skoufis says. “It’s a nightmarish process to be able to do something as simple as go see your favorite artist in this state. And this is a major proposal to try and stand up for that.”
Other amendments Skoufis is proposing include a cap on fees for concert tickets, as well as an outlaw of speculative tickets, the widely-criticized practice in which brokers list tickets for sale that they don’t actually have yet.
So far, Maine is the only state in the U.S. that has managed to implement price caps on ticket resale. Other markets that have introduced this type of legislation include Maryland and Washington, D.C. Price caps have become an increasingly common legislative push from ticket reform advocates, who argue that removing the profit incentives from the resale market will turn scalpers off from resale.
Critics have long argued that resale caps stand in the way of a free market, and that ticket holders should have the right to do what they wish with their tickets, whether that’s use them for themselves or sell them to someone else. Others in the industry, however, argue that tickets are not property, but rather a license for entry into a venue, and therefore shouldn’t be treated like a market.
“We’ve given the free market a chance here for decades and it hasn’t worked,” Skoufis says. “And so it’s time to to for government to step in and put up guardrails to protect the fans.”
The live music business has been an intense subject of legislation in recent years as fans have grown increasingly vocal of their dissatisfaction with the current system, from frustration over dynamic pricing and growing ticket fees to exorbitant pricing on the secondary market. Concerning the primary side, Live Nation, owner of the eponymous concert promoter and ticketing giant Ticketmaster, faces lawsuits from both the DOJ and FTC over monopoly allegations and claims of collusion with ticket brokers. Live Nation has denied the allegations.
Not listed in the draft language is how any sort of price cap would be enforced. When asked, Skoufis said that “there are so many stakeholders who have a lot of money behind them that have a vested interest in making sure that this law is followed if it’s passed.”
He acknowledged more direct enforcement language would be needed, but added that if the rule isn’t followed “after this bill is signed and becomes effective, you can be sure that [stakeholders] are going to be deploying their army of lawyers to bring these folks to court.”
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source www.hollywoodreporter.com ’
