Law Practice, Attorney What is Ticket Scalping? | How to Prevent Scalpers | Netacea After that, they resell them with inflated prices. In recent years, fraudsters have started to use more complex methods by which they obtain tickets for resale on the secondary market. Your I was lucky enough to find two tickets to the first Phillies game vs Cleveland that year but it just wasnt the same. Scalping tickets is illegal in many areas due to the fact that is unethical and can be harmful to the success of an event. In essence, scalpers know very well that many fans may make a purchase decision based on emotions or irrational thinking at the moment they are purchasing the tickets. I immediately checked Stubhub - they had 172 tickets for the event, all starting at three times the face value of the ticket! Supply and demand. The Wild West Of Ticket Sales And Scams | TPR . As such, they may act like private citizens looking for tickets and try to find scalpers dealing in large volumes or those who are taking advantage of the public by buying tickets and artificially raising prices for their benefit. It is simply supply and demand. HARRISBURG Attorney General Michelle Henry announced a settlement has been reached holding accountable the ticket reseller website, www.boxofficeticketsales.com, for violations, including a change of policy that eliminated refunds for canceled events. PDF LEGAL ISSUES ASSOCIATED WITH TICKET SCALPING - The SMART Journal Did As such, there have been preorders for gaming consoles where all the consoles were sold within minutes. [43], For taping of Comedy Central's The Daily Show and The Colbert Report, tickets were free. Generally speaking, however, states that do consider ticket scalping to be illegal will issue fines for up to $1,000 and/or a jail sentence for no longer than one year if the scalper is a first-time offender. For many major sporting events, counterfeit tickets are auctioned off in the months leading up to the event. Its surely not becasue the many concert going fans want it available. A further four leave it up to individual municipalities to decide. For example, some states prohibit the scalping of tickets if a scalper is 1500 feet or closer to the entrance of a venue where a resold ticket can be used. Approximately 16 of the 50 states have a law that makes scalping illegal. Yeah, everyone should be able to pay a reasonable price. It is controversial whether tickets are goods which can be privately resold. Critics of ticket scalping argue that the practice should be prohibited as it unjustly favors those who have more money to pay more for the tickets (the wealthy). If you bought something at a retail store and then tried to sell the item at more than retail you are in danger of being reprimanded by the law (and yeah I know people do it and do not get caught). If you enjoyed this article on Is Scalping Illegal, I recommend you look into the following legal terms and concepts. Yes everybody wants to go see the Penguins in the playoffs for face value or see the Phillies clinch the NL east on the last day of the season for face value. In the US, ticket scalping is the practice of buying and reselling event tickets by private citizens, rather than by the sponsoring venue or organization, usually at a much higher price than their face value. Ticket resale is a form of arbitrage that arises when the number demanded at the sale price exceeds the number supplied (that is, when event organizers charge less than the equilibrium prices for the tickets). Often they will wait until the authorized tickets are sold out in order to create more demand for their overpriced tickets. Licensing Office of Public Safety and Inspections Division of Occupational Licensure 1000 Washington Street, Suite 710 Boston, MA 02118 (617) 727-3200 Web sources File a complaint against a DOL licensee, Mass. As such, the majority of ticket scalping incidents are now primarily committed through an online sales transaction. It is generally frowned upon and might even be considered a misdemeanor in some states to purchase tickets from a scalper; however, anti-scalping laws are generally more focused on stopping the scalper from selling tickets rather than charging people who purchased them. Laws about ticket scalping vary by state, and there is no federal law that prohibits the practice. In the United States, the laws regulating ticket scalping varies from one state to another. The artificially inflated ticket price results in an effective obstacle to many to attend an event as they could not afford it. Pennsylvanians who purchased tickets before November 19, 2021 through, for a show that was canceled and has not yet received a monetary refund should contact the Office of Attorney Generals Bureau of Consumer Protection by filing a consumer complaint online at, www.attorneygeneral.gov/submit-a-complaint/consumer-complaint/, Send Drug and Child Predator Anonymous Tips, Community Drug Abuse Prevention Grant Program, ACRE Agriculture, Communities and Rural Environment, Pennsylvania State Coroners Education Board, Voters Rights in Effect at the Polling Places on Election Days. [44], Though scalping is most commonly associated with ticket sales, the process of buying desirable commodities and selling them off for a higher rate has proven lucrative with other items, particularly electronic devices such as mobile phones, video game consoles, and computer hardware. Ticket resale (also known as ticket scalping or ticket touting) is the act of reselling tickets for admission to events. If scalping were illegal, then I would have never been able to afford such great seats. So to determine if scalping is legal or not, youll need to look at state laws or laws at the municipality or county level. There are a number of people who do not see any reason why scalping should be illegal. I bought a Nintendo wii when they first came out. Events that commonly attract ticket scalpers include the following and more: If there is an extreme shortage of tickets for an event that is in high demand, scalpers may go even further than simply buying and reselling authentic tickets. I have a question out of curiosity that hopefully someone could help me answer. Additionally, the Commonwealths investigation alleges that Secure failed to comply with Pennsylvanias ticket resale statute, which was introduced to combat ticket scalping. There are regulations to follow, and fines and penalties if they are not followed. That way I can pick the events I want to go to w/o investing lots of money in season ticket plans. [26] However, selling tickets in a public place (e.g. In May, a district court denied. But is scalping really bad? The website www.boxofficeticketsales.com has been one of the largest ticket resale platforms for Pennsylvania consumers. I dont think people are disputing that you can make a little off of the sale of the tickets you cant use. Ticket scalping lawsuit to be settled | Archived News | Daily Collegian If the reseller buys up the tickets, fans may not have the opportunity to purchase tickets at their original cost. There's no law in Texas against reselling tickets, but big sports cities like Houston and Arlington have proactively passed ordinances to crack down on scalping. They want your money, you want their ticket; open market regulates the price based on supply/demand. If you find ticket scalpers close to raceways and the NFL, you may likely see a higher level of enforcement by the police authorities and others, such as: Considering the level of supervision taking place at raceway games and the NFL, scalpers tend to stay away from such events or conduct their activities with a higher level of care. Jaclyn holds a J.D. Assessing the Economic Rationale and Legal Remedies for Ticket Scalping But with a projected $15.2 . There have been numerous times (this morning included) where I have been online with my finger on the refresh button two minutes prior to the official selling time. There are many full-time scalpers who are regulars at particular venues and may even have a pool of loyal buyers. Did stubhub just get a batch of tickets to sell at their escalated prices? Reacting to complaints of aggressive scalpers on the North Shore after the stadiums opened a decade ago, the city implemented licensing requirements, scrapped them, and then reinstituted them. Season ticket holders generally receive the same exact seat locations year after year thus they can enter a contract to deliver on tickets that they own the rights to, even if those tickets have not even been printed or sent to the original ticket holder. Price Gouging Laws by State - FindLaw But there is an argument that ticket scalping actually enhances the total welfare of concert goers and sports fans. Many hazards are linked with purchasing scalped tickets, including the possibility of purchasing counterfeit or invalid tickets, paying inflated rates, and being defrauded by dishonest scalpers. Why shouldnt I be able to sell the tickets at face value (which doesnt include all my upfront costs, BTW), or maybe even a little more if that is what people are willing to pay. It just seems that there are so many tickets out there with elevated prices. This page was last edited on 30 March 2023, at 06:19. The majority of transactions that occur are via credit card over the phone or internet. Approximately 16 of the 50 states have a law that makes scalping illegal. Although derivatives was a practice in use mostly in the 1980s, some ticket brokers offer tickets even before the tickets are officially available for sale. I have partial Phillies season tickets and have used each ticket opportunity for the post season that was offered, giving some away to family/friends at face value. Ticket scalping has become a huge business; however, it is nearly impossible to account for the broad ef- What is ticket scalping? Why should you prevent it? - geetest Ticket re-sellers reportedly purchased two-thirds of all available tickets, to capitalize on public demand. When googling an event, avoid the first few results, which will be tagged as ads, and scroll down to find the authorized seller's webpage. When scalpers buy large quantities of tickets, they take the risk of failing to resell all of them, losing money. What is ticket scalping? The laws preventing scalpers from operating can take several forms. I counter offered $70 a ticket, twice what the artist will benefit from, and the broker responded, $70 isnt even in the ballpark, I dont wake up for $70, $200 or nothing, Id rather not sell them than lose that much money on the sale. How is that LOSING? Some have been known to forge tickets, selling them to unsuspecting people who will later be unable to enter into the event they believe they have paid for. How has the industry evolved in terms of consumer protections and how ticket prices are calculated? I choose to put the money out upfront be because I enjoy watching certain games, and I want to make sure I can get in to see those games. The resale of tickets is only permitted if an entertainment site or venue has provided an express authorization. So, then what separates scalping from something like drop shipping? In Pennsylvania, a special brokers license is required; however, it is not uncommon for many unauthorized scalpers to carry out their own illegal transactions. These cannot be later resold or transferred via ticket exchanges such as StubHub.[5]. See, if you are knowledgable of what goes on in our society regarding tickets to events, there are companies like RazorGator and many others who profit by buying as much as possible to an event leaving less or no tickets for a casual individual buyer. The new law became effective immediately. This year I will probably not make it Thanks again Ed Spendell. The purpose of this article is to provide a brief historical perspective of ticket scalping, examine various anti-scalping legislation and analyze re-lated case law. Harrisburg, PA 17120, Phone: has been one of the largest ticket resale platforms for Pennsylvania consumers. They state that it creates a fair, open market that both parties are agreeable toward. What Is A Motion To Dismiss (All You Need To Know), What Is A Demurrer (Explained: All You Need To Know), What Is Music Law (Explained: All You Need To Know). - View Article - NYTimes.com", "Ticketmaster Credit Card Entry - Information and FAQs. If someone else has reference to it please provide a link (I will if I find it). About the same time, I see tickets being posted on brokers websites for six and a half times the ticket price ($35 to $225). The law requires any individual who purchases tickets with the intent to resell them at a higher price to first obtain a license from the County Treasurer where the sale will occur. As previously mentioned, each state has its own scalping laws. I do the same thing with my Red Sox season tickets. An experienced criminal defense lawyer can inform you of your legal rights and options, as well as can determine whether you have any defenses. 10 Some state regulations are designed to prohibit scalping only if the issuer wishes to do so." Other regulations attempt to control scalpers by requiring a license. The law labeled the ticket-seller most often Ticketmaster as the aggrieved party that must bring forward charges. Those who can enforce the law at races or football games include box office personnel, supervisors, venue managers, ticket agents, security agents, event promoters and seat holders. [3][4] Ticketmaster has since changed the name of the system to "Credit Card Entry". Most major league teams now cater to those having more than enough money to purchase season tickets at any cost. if you really want the fair price, how about buy the tickets before that night? . This is caused by a number of factors. Thats why you have to pay more for tickets to big events. Ticket scalpers pay little heed to rules | TribLIVE.com Secure Ticket Purchase thought they could walk away with consumers hard-earned money by surreptitiously changing their refund policy in the middle of a pandemic, said Attorney General Henry. [12] In 2008, the Boston Red Sox chose Ace Ticket over StubHub to sell their tickets. I've practiced law in a boutique law firm, worked in a multi-national organization and as in-house counsel. 140 185D, North Carolina N.C. Gen. Stat. The scalper hasn't performed any service other than to block my original purchase. The new addition to the penal code enabled police to fight the ticket scalping of sports and music events (especially those scalpers that bought massive numbers of tickets for the sole purpose of resale), which were causing much distress to the public and enabled scalpers to evade paying taxes, but since no law strictly outlawed the practice, could not be legally fought prior to the new law. I would hate to have to tell my son that we just can not afford to go to the opener this year. There are so many events around the country, so many tickets bought and sold, and only so much law enforcement bandwidth, its nearly impossible to pursue all scalpers breaking the law. Tickets are bought from licensed sellers and then sold for a price determined by the individual or company in possession of the tickets. Office of Public Safety and Inspections. The New Age Of Ticket Scalping | Twin Cities Business Ticket scalping laws, for example, differentiate between scalpers on the streets and ticket brokers. Im trying to get tickets to a concerts that sold out in a matter of minutes.