Artists and event organizers often face challenges with ticket resellers who buy up large quantities of tickets and resell them at inflated prices. This practice, known as ticket scalping, can make it difficult for fans to get tickets at face value. Some artists and event organizers are exploring ways to restrict ticket resales in order to make events more accessible to their core fanbase.
The problem of ticket scalping
Ticket scalping happens when individuals or companies buy up large quantities of tickets with the sole intention of reselling them at a higher price to make a profit. This often means that fewer tickets are available at face value through primary ticket sellers. Scalpers use various tactics like bots to buy up tickets the moment they go on sale. The inflated resale prices can put tickets out of reach for fans with more limited budgets.
Artists, promoters, and venues miss out on revenue when scalpers insert themselves into transactions. The higher prices can also damage goodwill with fans who feel exploited. Additionally, scalpers tend to target the best seats in venues, making those high demand seats even more difficult for real fans to obtain.
Efforts to restrict ticket resales
In response to these issues, some artists and event organizers are looking at ways to crack down on ticket scalping and restrict ticket resales. There are a few main approaches:
- Ticket transfer restrictions – Tickets can only be used by the original purchaser and cannot be resold at all. The artist can require proof of ID along with the ticket for entry.
- Capping resale prices – Resellers can only list tickets up to a certain price, often the original face value. This eliminates the ability to profit from markups.
- Exclusive presales – Special presales are held for fan club members and customers of the artist’s mailing list. These help get tickets directly to their core audience.
- Paperless ticketing – Tickets are only issued electronically and connected to the purchaser’s name to prevent transferability.
Artists like Bruce Springsteen, The Foo Fighters, and Adele have used combinations of these tactics. Ticketing platforms like Ticketmaster also offer tools for event organizers to set resale rules and restrictions.
Are full ticket transfer bans legal?
While restrictive measures can help tamp down scalping, fully banning ticket transfers does raise some legal questions. Tickets are generally considered a type of property that can be resold under ownership rights. However, artists and event organizers argue special circumstances apply to these live event transactions. The matter has not been fully settled legally, and rules vary by jurisdiction.
Notable cases include:
- A lawsuit against Ticketmaster’s transferable barcodes was dismissed in New Jersey in 2018, upholding Ticketmaster’s ability to use them.
- In 2019, the FTC blocked Eventbrite from banning ticket transfers in a settlement. However, Eventbrite disputes that tickets are property that can’t be restricted.
- As of 2022, New York’s anti-scalping law bans restrictions on ticket resales. But the law is controversial.
While the legal status remains murky, bans do face scrutiny from secondary sellers and consumers who want resale rights. Ultimately, enforceability also depends on technology catching up to policy goals.
Are ticket resale bans good policy?
Those opposed to ticket resale bans make the following arguments:
- It limits options for consumers – People can’t easily resell tickets if their plans change.
- It disproportionately impacts lower income fans – Wealthy fans snap up top tickets then can’t redistribute them.
- The market should dictate pricing – Artificially capping prices creates distorted incentives.
However, proponents counter:
- It makes access more equitable – Capped prices let more real fans get tickets vs. scalpers.
- It helps fight predatory practices – Scalpers exploit demand using bots to buy bulk tickets.
- Artists should control distribution – They have an interest in their fanbase accessing events.
There are good arguments on both sides. A balanced policy may be to cap resale prices at modest thresholds rather than outright transfer bans. This maintains some resale access while preventing egregious profit motives.
Technological measures against scalping
While policy and legal tools are still evolving, technology can also assist in limiting scalping:
- Verified fan presales – Fans register in advance and get codes for presale access.
- Mobile ticket checkpoints – Ticketholders must show ID matching ticket buyer info to enter events.
- Blockchain-traced ticketing – Each ticket sale is registered on the blockchain for tracking.
- AI bot detection – Algorithms identify and block bulk ticket orders from bots.
Systems like these can identify genuine fans vs. scalpers and restrict arbitrage opportunities. However, these measures often do face criticism on privacy and convenience grounds. Technical countermeasures from scalpers also continue evolving in the cat and mouse game.
Conclusion
Ticket scalping remains a contentious issue with perspectives on both sides. Artists and event organizers are justified in trying to ensure fair access, especially for their core fanbase. However, fans also make reasonable arguments around resale rights and pricing autonomy. There are merits to an intermediate, balanced approach with capped resale prices. Additionally, evolving technology and data tools provide new options to identify and restrict scalpers. With thoughtful policies that consider all viewpoints, live events can hopefully nurture artist-fan relationships rather than exploit them.