The practice of ticket scalping, where tickets are resold at higher prices, often divides public opinion. While some see it as unethical price gouging, others view it as a reasonable business practice. But the most important question for buyers is: can I get in legal trouble for using a scalper?
The short answer is: it depends on where you live and the event. Anti-scalping laws vary widely across states and cities in America. Major sporting events often have special rules too. While scalping itself is illegal in many places, the law typically does not prohibit buyers. However, there are some exceptions buyers should know.
What is Ticket Scalping?
Ticket scalping refers to reselling tickets at a higher price than face value. Scalpers may get tickets through special presales, by utilizing bots to buy up tickets faster, or by buying up season ticket holders’ seats. They then resell these tickets, sometimes at many times face value.
Scalpers typically target high demand events where tickets are likely to sell out. This includes concerts by major pop stars, playoff games for sports teams, or hot Broadway shows. The limited supply allows scalpers to drive up prices.
They primarily resell tickets through secondary markets like Craigslist, eBay, Stubhub, or even on the street outside venues. Sites like Stubhub provide a convenient platform for scalpers in exchange for a commission on sales.
Why Do People Dislike Scalpers?
There are several reasons ticket scalping draws public ire:
- It denies ordinary fans access to events. When scalpers gobble up ticket inventory, it squeezes out budget buyers. Many detest missing out just because they cannot afford inflated prices.
- Scalping advantages some groups. Scalpers manipulate systems to get early access to tickets at face value. This shuts out people without the right connections or technical know-how.
- It leads to financial loss. Some buyers pay extremely inflated prices out of desperation, only to find the tickets are fraudulent or get turned away at the door.
- It reflects poorly on artists/teams. Fans blame their favorite musicians or sports clubs when scalpers take over. Some groups try to combat scalpers to avoid this image tarnish.
However, opinions are mixed. Others argue scalping provides valuable price discovery, convenience, and transfers risk to resellers rather than venues. The core question is whether scalpers provide a useful service or exploit supply and demand imbalances.
Types of Anti-Scalping Laws
There are three main approaches states and municipalities take to regulate ticket scalping:
1. Ban scalping completely
The most restrictive approach is to ban all ticket resales above face value. This essentially prohibits all scalping. However, only around a dozen states still have blanket bans, including Arkansas, Kentucky, and Michigan. Enforcement can be difficult.
2. Cap markups
A more moderate approach is to allow resales but cap the markup amount. For example, Colorado limits resale prices to $5 above face value. And Rhode Island mandates prices cannot exceed $3 or 10% above face value. This targets extreme gouging but allows more minor markup.
3. Require licensing
Some places require resellers to acquire a license or seller’s permit. This allows regulators to oversee the market. For example, Los Angeles requires a police commission permit to resell tickets. Licensing helps discourage underground scalping.
Of course, the internet makes enforcement difficult. Strict local laws may simply push scalpers to sell online or in other locations. This is why federal legislation has been proposed, though not yet enacted.
Penalties for Scalpers
So what punishments do scalpers face? Again, this depends on the jurisdiction. But penalties may include:
- Civil fines. For example, New Jersey imposes fines of $500 to $1,000 per offense.
- Criminal charges. Some areas classify scalping as a misdemeanor. Jail time is rare but possible for repeat offenders.
- License revocation. Authorities can revoke seller’s permits where required.
- Seizure of profits. Hawaii allows the state to confiscate scalpers’ profits.
But anti-scalping laws primarily target the sellers themselves, not the buyers. Let’s look at exceptions where customers are at legal risk.
When Can Buying from Scalpers Be Illegal?
While scalpers bear the brunt of enforcement, there are scenarios where buyers also risk penalties:
1. Local anti-scalping laws are very broad
Some statutes are written to prohibit not just selling but also buying resold tickets. Such broad laws are increasingly rare, but buyers should check their local codes just in case.
2. Tickets identify resale as prohibited
If event tickets are clearly marked “not for resale”, buying those exact tickets could be prohibited. Printed restrictions put buyers on notice.
3. Tickets turn out fraudulent or stolen
Any buyer could unwittingly purchase fake or stolen tickets from unscrupulous scalpers. But if you then try to use such illicit tickets, that constitutes fraud or receipt of stolen goods. Both can carry legal consequences, especially if intentional deception can be proven.
4. Violating special event policies
Some major events have extra rules against scalping encoded in their ticket policies. The Olympics, World Cup, Superbowl, and other high-profile events often do this. If you use a scalper to buy tickets against posted policies, you could face civil suits or be denied entry.
So while buyers are generally in the clear legally, it pays to be cautious with major events or local anti-scalping laws. Responsible buyers should research the specifics in their area and for the event.
Factors That Determine Legality
Several key factors determine whether buying from scalpers carries any legal risk:
- Type of event. Small local happenings are less regulated than major spectacles like playoffs or festivals.
- Location of event/purchase. Laws are location specific, so crossing state or city lines matters.
- Exact law wording. Does the law target resale, purchase, or both? Breadth is key.
- Ticket wording. Printed conditions can prohibit certain resales or transfers.
- Buyer’s knowledge. Knowingly using illicit tickets is viewed differently than unwittingly buying problematic seats.
Where you buy also matters. Buying directly from a local scalper on the street likely carries higher risk compared to using an intermediary marketplace like Stubhub or SeatGeek.
Mitigating Legal Risks
Savvy buyers can reduce their legal risks through a few precautions:
- Research applicable laws. Check your own local codes plus regulations at the event location.
- Read ticket wording. Scan for any printed anti-resale conditions before purchasing.
- Ask about origin. Probe the scalper on how they obtained the tickets.
- Review event policies. Check for special rules against scalping or transfers.
- Pay through secure platforms. Marketplace sites like Stubhub offer more protection than anonymous transactions.
- Avoid street deals. Bogus or prohibited tickets are more common buying direct from unknown scalpers.
No approach fully eliminates the legal risks. But prudent buyers can certainly slash their chances of trouble.
Ethical Considerations
Legality and ethics do not always align. So buyers should also weigh these ethical considerations:
- Does using a scalper deny ordinary fans fair access?
- Does the markup constitute reasonable profit or exploitative gouging?
- Would the purchase encourage future scalping activity?
- Is the venue or artist actively trying to prevent scalping?
There are persuasive ethical arguments on both sides. It ultimately comes down to buyers’ personal values and circumstances.
Conclusion
While anti-scalping laws primarily target sellers, buyers are not immune from legal jeopardy in all cases. Local codes, special event rules, and dodgy tickets can all create risks. The prudent buyer conducts thorough research beforehand.
Mitigating legal hazards often aligns with ethical practices: patronizing regulated marketplaces over shady direct deals, scrutinizing prices and policies, and avoiding tickets marked non-transferable. While the law permits ticket resale in general, both buyers and scalpers must navigate carefully in this complex arena.