The reselling of event tickets is a common practice, but the legality of it depends on the laws of each state. In New York, there are specific laws that regulate the resale of tickets, with some restrictions in place. Understanding the legalities around ticket resaling in New York can help buyers and sellers stay compliant.
Is it legal to resell tickets in New York?
Yes, reselling event tickets is legal in New York, with some exceptions. New York’s Arts and Cultural Affairs Law includes provisions that allow ticket reselling under certain conditions.
The law prohibits using computer software to buy tickets in bulk for the purpose of resale at a profit. It also requires resellers to disclose certain details about ticket listings, such as the original purchase price. As long as resellers follow the required disclosures and don’t use ticket bots, reselling tickets is generally permissible.
What are the restrictions on ticket resales in New York?
There are a few key restrictions to be aware of when reselling tickets in New York:
– Ticket bots – Using software to purchase tickets in bulk is illegal. All ticket sales must be done manually.
– Price floors – For tickets to events at major entertainment venues in New York City, resellers cannot list tickets for resale at less than the original box office price.
– Disclosure requirements – Resellers must disclose the original ticket purchase price, where the seats are located, and whether the tickets were acquired through a special promotion or discount.
– Limits on speculative selling – Tickets cannot be resold unless they are actually in the reseller’s possession or will be by the date of the event. Speculatively selling tickets that have not yet been secured is not permitted.
Are there exceptions for charity or nonprofit resales?
Yes, there are some exemptions to New York’s ticket resale laws for charity and nonprofit organizations reselling tickets as fundraisers. As long as the tickets are resold at face value or less, charitable organizations may resell tickets that were originally purchased from an authorized source.
The law exempts resales by nonprofit organizations that resell tickets at no more than $5 above face value. The $5 markup allowance only applies to nonprofits though, not private resellers.
Does New York law allow ticket transfers?
New York law makes a distinction between ticket reselling and ticket transfers. Transferring a ticket for free or as a gift without compensation is permissible.
However, if there is a premium or service fee charged for facilitating the transfer, it would be considered a resale and subject to the standard resale restrictions. Buyers and sellers should be sure they understand when a transfer becomes a restricted resale transaction.
What are the penalties for violating New York ticket resale laws?
Violating New York’s ticket resale laws can result in civil penalties enforced by the state Attorney General’s office. Penalties may include:
– Fines of up to $1,000 per violation
– Paying restitution to buyers who suffered economic harm from unlawful sales
– Disgorgement of any profits made through illegal resales
– Injunctions against future ticket resale activities
Using bots to unfairly monopolize ticket purchases may also be prosecuted as criminal activity, with additional fines and jail time possible based on the severity of the offense.
Conclusion
Ticket reselling is generally legal in New York, with some regulations in place to protect consumers and prevent exploitation. Following the disclosure requirements, avoiding ticket bots, and limiting sales to tickets in possession can help keep resellers compliant with state law. Nonprofits and individuals making gift transfers also have some exemptions from the ticket resale restrictions. Understanding the ins and outs of New York’s ticket resale laws enables buyers and sellers to participate in a vibrant secondary market without running afoul of the rules.
Frequently Asked Questions
Can I sell tickets on Craigslist or Facebook in New York?
Yes, you can resell tickets on platforms like Craigslist and Facebook Marketplace as long as you follow New York’s ticket resale laws. You need to disclose details like the original price and seat location and cannot use bots to unfairly purchase tickets in bulk. As long as you manually secured the tickets and provide the required details, reselling on classified ads sites is legal.
Do New York’s ticket resale laws apply to sporting events and concerts?
New York’s Arts and Cultural Affairs Law covers ticket resales for a wide range of events, including concerts, theatrical performances, sporting events and other major entertainment attractions. Wherever tickets are initially sold through an authorized broker, the restrictions on price floors, bots, and disclosures apply.
Can I get in trouble for selling a ticket to a friend in New York?
Probably not, as long as you are making an isolated sale to a personal acquaintance and not operating an ongoing ticket resale business. The laws are primarily concerned with professional brokers and those abusing systems to monopolize ticket supplies. Use common sense when making an occasional sale to a friend or family member.
Do New York’s laws on ticket resales apply to Broadway shows?
Yes, Broadway shows in New York are covered by the state’s ticket resale laws. Resellers cannot use bots, must disclosure important details, and must follow pricing floors for the major Broadway theaters. Broadway shows are among the events most strictly regulated due to high demand.
Can I sell tickets I won in a contest or promotion in New York?
Typically yes, as long as the original tickets were legitimately obtained through a valid contest or promotion. You may need to take care to document how the tickets were initially acquired in case questions arise around their origins. As always, following the bot ban and disclosure rules still applies.
Key Facts and Statistics
- New York enacted its initial law regulating ticket resales in 1922, with refinements added over time, most recently in 2011.
- Violating New York ticket resale laws may result in civil penalties of up to $1,000 per violation.
- Using bots to unfairly corner the ticket market can be prosecuted criminally in New York.
- Around 70% of tickets to popular New York City venues are resold through secondary markets.
- New York ticket brokers must register with the Secretary of State to legally resell tickets.
- Over 25,000 tickets were cancelled in New York after a 2019 crackdown on broker violations.
- New York’s ticket sale laws attempt to balance consumer protection with a free market.
- Fewer than 10 U.S. states have laws banning ticket bots used to unfairly amass tickets.
- New York prohibits speculative sale of tickets not yet in the seller’s possession.
- Charities and nonprofits get some exemptions from ticket resale rules in New York.
New York Ticket Resale Rules By Venue
Venue | Key Regulations |
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Madison Square Garden |
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Broadway Theaters |
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Barclays Center |
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Overview of New York Ticket Reselling Statutes
Statute | Key Provisions |
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Arts & Cultural Affairs Law § 25.01 to 25.35 |
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NY General Business Law § 396-t |
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NY Arts & Cultural Affairs Law § 31.01 |
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Notable New York Ticket Reselling Court Cases
People v. Prestige Entertainment, Inc. (2018)
– Defendants used ticket bots to illegally purchase over 1 million tickets.
– Case led to injunctions, seizures, and over $6 million in civil penalties.
– Demonstrated New York’s willingness to crack down on reselling violations.
Singh v. Ticketmaster Corp. (2007)
– Class action lawsuit alleged unlawful ticket market manipulation.
– Settled in 2010 for $23 million in credits to ticketholders.
– Showed risks to major ticket sellers that violate consumer trust.
New York v. Hillside Ticket Exchange (2016)
– Attorney General sued broker for speculative sales, fake sites.
– Forced cessation of illegal activity, forfeiture of unlawful profits.
– Displayed enforcement against schemes violating ticket laws.
Tips for Avoiding Ticket Resale Issues in New York
- Watch for required disclosures on resale listings, like “original purchase price.”
- If a deal seems too good to be true, make sure the tickets are legitimate.
- Buying speculative “to be obtained later” ticket listings is risky.
- Understand the difference between a transfer and a regulated resale.
- Avoid buying multiples of tickets from unknown resellers.
- Patronize authorized original sellers instead of brokers when possible.
- Check on venue policies – some prohibit any resales.
- Consider NYC Consumer Affairs office for help with ticket disputes.
- See the NY State Attorney General’s website for latest advisories.
Current Legislative Developments
Some possible changes impacting New York ticket resale laws include:
– Expanding enforcement resources to better police unlawful activity. The volume of the secondary ticket market may necessitate more staffing to adequately oversee.
– Requiring more detailed disclosure from resellers about sources of their ticket inventory. This could help crack down on speculative sales.
– Closing loopholes that allow evasion of ticket purchasing limits when brokers use multiple accounts. Better coordination with ticket sellers could help address this problem.
– Increasing transparency around hidden fees and charges imposed by resellers on top of the base ticket price. This could improve price competition.
– Raising potential fines and penalties for major violations that unfairly enrich offenders. Stronger punishments may create better deterrence.
– Using technology like blockchain to validate ticket authenticity and prevent fraud. Emerging improvements could help protect consumers.
– Revisiting the nonprofit carve-outs to ensure they are not being abused beyond intention.
The New York Legislature continues to monitor the ticket resale market and may update the law’s provisions to boost enforcement and offer greater protections. Change happens incrementally but the general trend seems to favor increased regulation over time.