Selling concert tickets can be a great way to make some extra money if you can no longer attend an event. However, there are some important legal and ethical considerations to keep in mind when reselling tickets online or in person. In this comprehensive guide, we’ll explore the pros and cons of reselling tickets and provide best practices to ensure you stay on the right side of the law.
The basics of ticket resale
Tickets to concerts, sports games, and other events are often non-transferrable. This means the venue or original ticket issuer retains the right to invalidate any tickets being resold. However, there are many authorized ways to resell tickets, including:
- Using official ticket resale marketplaces like StubHub or Vivid Seats
- Reselling through the original ticket issuer
- Reselling in permitted venues like Craigslist
As long as you use authorized channels, reselling event tickets is usually legal. However, prices are regulated in some jurisdictions to prevent scalping. Let’s explore some of the most common questions and concerns around reselling tickets below.
Is it legal to resell tickets?
In general, reselling event tickets is legal in the United States as long as you follow certain guidelines. Under federal law, you have the right to resell tickets at any price if:
- The tickets were originally purchased from an authorized seller
- The tickets do not prohibit resale or assignment
- You resell the tickets on an authorized resale marketplace
However, some states and venues have additional restrictions, such as:
- Price caps on resale value to prevent scalping
- Restrictions on reselling tickets within a certain radius of the venue on event day
- Requirements to register as a ticket reseller and obtain a license
So be sure to check your state laws and the fine print on the original tickets before reselling. Violating ticket resale laws can result in civil or criminal penalties.
Can venues invalidate resold tickets?
Yes, in many cases venues retain the right to invalidate tickets being resold, especially if resale is prohibited. This is very common with paperless/mobile tickets tied to the original purchaser’s name and credit card. If tickets are non-transferable, reselling them violates the terms and conditions.
Venues can cancel barcodes on resold paperless tickets and deny entry. In many cases, they will offer the resale buyer replacement tickets at face value. However, policies vary so it’s important to check before reselling or purchasing resale tickets.
Is ticket scalping illegal?
Ticket scalping refers specifically to reselling event tickets at significantly above face value in violation of price caps or other resale laws. Many states have anti-scalping laws prohibiting the resale of tickets above a certain threshold – usually 10-20% above face value.
For example, if a ticket’s face value is $100, reselling it for more than $110-$120 could be considered illegal scalping in some jurisdictions. High-demand events like playoffs and concerts are common scalping targets.
Punishments for scalping vary by state but may include fines up to $1,000 and even jail time for repeat offenders. However, anti-scalping laws are difficult to enforce and some states have repealed them due to criticisms that they violate free market principles.
Ethical concerns
While reselling tickets is legal in many cases, some people view buying and reselling tickets purely for profit as unethical. Let’s examine some of the ethical debates around ticket resale.
Is reselling tickets unfair to fans?
There are concerns that allowing ticket brokers and scalpers to buy up tickets and relist them at higher prices shuts out average fans. When tickets immediately appear at inflated prices online, true fans can’t afford to attend events.
Additionally, technical tools that allow large-scale ticket buying to corner the resale market have exacerbated the issue in recent years. The result is everyday fans losing out while scalpers profit.
Do ticket resale markets unfairly benefit scalpers?
Third-party ticket marketplaces like StubHub and Vivid Seats have received criticism for enabling scalpers. Large-scale ticket brokers rely on these services for quick access to national resale inventory. Small scale individual resellers also use them.
Critics argue the convenience and legitimacy these platforms lend to scalpers undermines anti-scalping efforts. However, others counter that an open secondary market helps fans unable to use all their tickets for one reason or another.
Are ticket transfers better than resales?
To sidestep some ethical concerns, many brokers and fans opt to transfer tickets rather than resell them. Ticket transfers allow the buyer to assume ownership for the seller’s exact original tickets.
While legal ticket resales can occur at any price, transfers merely recoup the original face value price. This avoids the ethics issues of earning large profits off tickets.
However, transfers are still a legal gray area and may violate terms and conditions depending on the event policies. Buyers also lose protections offered on resale marketplaces.
Best practices for reselling tickets
If you do choose to resell your tickets, following best practices can help avoid issues:
Review ticket terms and check state laws
Before listing a ticket for resale, carefully review the fine print for any restrictions that would prohibit resale. Also verify your state’s resale laws, especially price caps and licensing requirements.
Use a reputable resale marketplace
Stick to established third-party marketplaces like StubHub or Ticketmaster. Avoid platforms with less oversight where you’re more likely to encounter scams. Reputable sites also handle delivery logistics.
Disclose ticket details accurately
Provide detailed information on the original purchase and ticket limitations in your listing description. This allows buyers to make informed decisions and avoids misleading them.
Avoid resales leading up to the event
Last-minute resales run higher risks of cancellations, denials at entry, and buyers being shut out due to transfer delays. Give yourself and buyers ample buffer time.
Price fairly and within the legal limits
Avoid escalating prices beyond reasonable levels. Additionally, make sure not to exceed legal resale price caps in regulated states to avoid penalties.
Consider donating unwanted tickets
If unable to attend an event, donating extra tickets to charity provides tax benefits. It also gives the tickets to fans who otherwise couldn’t afford them through ethical means.
Is it better to resell or return tickets?
If your plans change shortly after purchasing tickets, you may be able to return them to the original retailer for a refund. This avoids the hassle and risks of reselling.
Many primary ticket sellers allow returns in the weeks leading up to an event. The exact policies will depend on the company. Sports teams and smaller venues tend to have stricter no-return policies.
Returning tickets through the original source ensures you recoup their full value. You also don’t have to worry about finding buyers or ticket transfers. However, this option isn’t always available for late notice cancellations.
Evaluating return policies before initial ticket purchase can set proper expectations if situations change. Some benefits of returning vs. reselling include:
Returning tickets | Reselling tickets |
---|---|
Guaranteed full refund | Lose fees and potentially take loss |
No concerns over cancelled barcodes | Risk of venue cancelling barcode |
No need to find buyers | Must market and sell yourself |
No shipping/transfer worries | Potential delivery delays and logistics |
In summary, returning tickets directly can be less hassle but is time sensitive. Reselling works for last minute changes but has more risk and effort involved.
Recap of key points
To recap the key takeaways around reselling event tickets:
- Reselling tickets is legal through authorized platforms, but prohibited by some venues
- Check your state’s anti-scalping laws before setting resale prices
- Using reputable marketplaces lends legitimacy and protection
- Disclose ticket restrictions upfront to avoid misleading buyers
- Allow ample time before the event date for transfers
- Consider donating unwanted tickets instead of reselling
- When possible, take advantage of return periods to avoid resale
While reselling tickets provides a way to recoup costs, proceed with caution. Seek professional legal advice if unsure about policies in your jurisdiction. And when selling or buying resale tickets, always use trusted platforms for smooth transactions.
Conclusion
The legality and ethics of event ticket resales remain controversial topics. Laws vary between states, venues, and ticket issuers. In general, selling tickets for profit is allowed through authorized channels under certain conditions. However, some see this as unfair and against the interests of fans.
If you choose to resell tickets, following best practices around transparency, fair pricing, and using reputable platforms protects all parties. For unwanted tickets, explore returns and donations before immediately reselling. While convenient, the risks around cancelled barcodes, scams, and delivery delays persist on the secondary market.
With the right approach, reselling tickets provides buyers access and sellers recouped costs. However, it inevitably carries challenges not present when buying directly or returning tickets initially. Understanding the ins and outs helps ensure smooth transactions. Most importantly, always comply with all terms, conditions, and local laws.