Ticket scalping refers to the practice of reselling tickets for popular events at prices higher than their original face value. This often occurs for concerts, sports games, and other high-demand events where tickets initially sell out very quickly. Scalpers will buy up large quantities of tickets with the sole intent to resell them at a profit. This has led many fans and event organizers to view scalping as unfair and exploitative.
When it comes to major ticket sellers like Ticketmaster, there are some restrictions in place to discourage mass purchases for the purposes of resale at marked up prices. However, the exact laws and policies around ticket scalping can vary significantly depending on location and circumstance.
Ticketmaster’s Stance on Scalping
As the largest primary ticket provider in the United States, Ticketmaster does have measures in place to limit scalping on their platform. Their Official Fan-to-Fan Ticket Resale Marketplace allows season ticket holders and other fans to resell tickets they can no longer use. Sellers can relist tickets for free, but Ticketmaster imposes price caps to prevent egregious markups.
Ticketmaster’s Terms of Use expressly prohibit anyone from purchasing tickets for the sole purpose of reselling them for profit. If they identify any users systematically engaging in this kind of arbitrage, they reserve the right to revoke those accounts. They monitor for suspicious activity like bulk purchases across many events or quick turnaround relistings at higher prices.
Anti-Scalping Laws
In general, anti-scalping laws in the United States are fairly limited. The most common legal restrictions involve where and how tickets can be resold. Many states prohibit selling tickets at the actual venue on event day unless the seller is authorized. Some places require resellers to be licensed businesses. But outright bans on ticket scalping are rare.
New York’s anti-scalping law from the 1960s was struck down by the courts for violating First Amendment free speech rights. A few states do still limit markups on resale. In Georgia, resellers can only ask up to $3 above face value. Connecticut caps resale prices at 17% over face.
State | Scalping Restrictions |
---|---|
California | Cannot sell within 1,500 feet of venue |
Florida | Must be authorized ticket seller |
Massachusetts | Cannot sell for over $2 above face value |
New York | No general restrictions on scalping |
Texas | Cannot sell within 1,000 feet of venue |
For states without such defined resale restrictions, scalping is generally permitted and seen as a matter of free market forces. As long as resellers are not committing fraud or misrepresentation, they are typically not violating the law.
Scalping Can Violate Ticketmaster’s Terms
So while scalping on Ticketmaster may be legal according to state laws, it can still be grounds for account suspension or cancellation under Ticketmaster’s Terms of Use. These terms prohibit reselling tickets except through their official resale marketplace.
If Ticketmaster detects suspicious patterns like:
- Purchasing the maximum ticket allotment for many different events
- Immediately posting those tickets for resale at higher prices
- Placing orders from multiple accounts linked to the same address or payment details
They can then exercise their rights to revoke the accounts of those users deemed to be ticket scalpers. So while not directly illegal, those buying tickets strictly to resell could find themselves shut down by Ticketmaster outside of legal consequences.
Ethical Arguments Against Scalping
The main ethical objection to scalping is that it prices regular fans out of tickets to popular events. Instead of tickets going to those who actually want to attend for a fair price, scalpers manipulate supply to drive up costs. Some see it as an unfair business practice that exploits demand.
Venues, teams, and artists often try to combat scalping to ensure fair access. Common measures include:
- Ticket limits – restricting how many tickets one person can buy
- License plate verification – requiring ID matching the ticket purchaser upon entrance to the event
- Paperless ticketing – requiring the credit card used to purchase tickets to be shown at the venue for entry
- Dynamic pricing – adjusting prices for tickets based on current demand to undercut scalpers
However, these efforts have had mixed results curtailing the secondary ticket market. As long as people are willing to pay well above face value, a profit motive remains for scalpers.
Negative Effects of Scalping
In detail, critics highlight scalping’s negative effects such as:
- Higher prices – Scalpers artificially limit supply by buying up bulk tickets, forcing prices higher on secondary markets.
- Reduced access – Less well-off fans get priced out from attending their preferred events.
- Inconvenience – Savvy fans have to spend more time hunting for deals as many tickets appear overpriced.
- Uncertainty – Buying scalped tickets of questionable origin brings risks of fraud and counterfeits.
Defenses of Scalping
Meanwhile, some defend scalping as simply an exercise in free market capitalism. Arguments made in favor include:
- Marginal utility – Scalpers allow tickets to go to those who want them most as reflected by their willingness to pay higher prices.
- Market correction – Rising resale prices indicate underpricing. Venues should charge what the market will bear from the start.
- Guaranteed supply – Scalpers ensure liquidity, so fans know if they are willing to pay a premium, tickets will be available.
This debate involves principles of consumer rights, pricing fairness, and ethics surrounding scalpers profiting off artificial scarcity. Reasonable minds disagree on the proper policy approach.
Conclusion
In summary, while scalping is not expressly illegal in most jurisdictions, reselling tickets solely for profit does violate Ticketmaster’s Terms of Use. They monitor for patterns of bulk purchases for quick resale and will shut down accounts engaging in clear scalping activity. Beyond account suspension, blatantly criminal fraud or misrepresentation could spur legal action.
The larger controversy remains centered on the ethics of scalping and its impacts on equity of access for fans. But when using Ticketmaster as the ticket source, resellers do risk account termination even if not strictly breaking the law based on Ticketmaster’s internal policies.