Scalping refers to the practice of buying tickets to popular events like concerts or sports games and then reselling those tickets at a higher price. Scalpers take advantage of the limited ticket supply for high-demand events to make a profit. However, some states have laws aimed at preventing or restricting ticket scalping.
California has its own anti-scalping laws that regulate how and when event tickets can be resold. The key objectives of California’s anti-scalping laws are:
- Preventing unofficial ticket resale at unfairly inflated prices
- Curbing scalpers from acquiring large portions of limited event tickets
- Protecting consumers from fraud when buying resold tickets
The laws apply to a wide range of live entertainment events happening in California like concerts, theater shows, and sports games.understand California’s anti-scalping laws, this article will cover:
- The key provisions under California Penal Code Section 346
- Restrictions specific to ticket resale at sports venues
- Exemptions to the anti-scalping laws
- Penalties for violating the anti-scalping statutes
Key Provisions under California Penal Code Section 346
The core of California’s anti-scalping laws is under Section 346 of the California Penal Code. The key provisions under this section include:
Ban on Scalping Tickets over Face Value
Section 346(a) prohibits reselling or offering to resell any ticket for admission to an entertainment event in California at a price higher than the price printed on the ticket.
This essentially bans scalping – reselling tickets at more than face value. The aim is preventing exploitation of fans through inflated ticket prices.
Restriction on Acquiring Large Volumes of Tickets
Section 346(b) makes it illegal to acquire tickets with the intent to resell them at higher prices.
The law prohibits using software or technology to purchase large quantities of tickets. This prevents scalpers from buying up tickets and creating scarcity.
Mandatory Refunds for Cancelled Events
Under section 346(g), any ticket reseller must provide full refunds to buyers if the event is cancelled or tickets become unusable.
This protects consumers who bought marked up tickets from unofficial resellers.
Disclosure Requirements for Resale Platforms
Any platform allowing ticket resale must disclose key details like the seller’s name, original price and more as per 346(i).
This improves transparency when buying resold tickets.
Restrictions on Reselling Sports Tickets
California has additional regulations specific to ticket resale at venues hosting professional sports teams.
Key provisions under California Business and Professions Code Section 22500-22505 include:
- Ban on resale within 1,500 feet of a sports venue 2 hours before and after the event
- Restrictions on resale website advertising
- Price caps on resold tickets (cannot exceed more than 50% of face value)
These added restrictions aim to deter scalpers from targeting popular sports games in the state. The price caps try to improve sports ticket affordability for fans.
Exemptions to California’s Anti-Scalping Laws
California’s anti-scalping statutes do not apply universally to all ticket resales in the state. The key exemptions include:
Authorized Ticket Resellers
Any reseller officially authorized by the event organizer/publisher is exempt. Example – ticket resale through a band’s official fan club.
Registered Ticket Brokers
The ban on reselling tickets above face value does not apply to ticket brokers registered with the state of California.
Non-Profit Resellers
Tickets resold for fundraising purposes by registered non-profit organizations are exempt.
However, these exempt resellers still need to comply with other consumer protections like refunds for cancelled events.
Penalties for Violating Anti-Scalping Laws
Violators of California Penal Code Section 346 can face:
- Up to 6 months in county jail
- Fines up to $2500
- Civil penalties up to $2500 per violation
For violations at sports venues, offenders can face:
- Fines up to $2500 per violation
- Civil penalties up to $2500 per ticket unlawfully sold
- Possible ban from the sports venue
California’s Department of Justice enforces the anti-scalping laws. Violators caught reselling tickets unlawfully may also have their inventory seized as evidence.
Recent Changes to California’s Anti-Scalping Laws
California has passed a few reforms in recent years to update the state’s ticket scalping laws:
Expanding Scope Beyond Entertainment Events
In 2014, the ban on ticket scalping was expanded beyond entertainment events to also cover ticketed conferences, amusement parks and other attractions. This closed a loophole that allowed scalping of tickets to events like Comic Con.
Authorizing More Official Ticket Resellers
Changes were also made to allow event organizers to authorize more official ticket resale channels. This aimed to improve consumer safety by directing resales away from unlawful scalpers.
Stricter Resale Disclosure Requirements
Tighter requirements were introduced around disclosure of ticket details during resale. All resale listings must now display details like seat location, ticket limits and more. This improves transparency for buyers.
Are Anti-Scalping Laws Effective?
There is some debate around how effective California’s anti-scalping laws have been in practice:
Prevents Most Extreme Cases of Scalping
The price caps and restrictions on mass ticket buys do deter opportunistic scalpers who rely on scarcity. It prevents the most unfair cases of $1000 tickets being resold for $10,000.
Loopholes Remain for Sophisticated Scalpers
However, sophisticated scalpers still exploit loopholes like buying tickets slowly over time. Some use bots or hire people for manual purchases to evade bulk buying restrictions.
Secondary Market Prices Can Still Be High
For hot shows, the secondary resale market still commands a premium over face value due to limited supply. So anti-scalping laws provide limited relief from high prices for in-demand events.
More Reform Needed to Improve Access
There are calls for more reforms like tighter purchase limits, more price caps, canceling duplicate orders and increasing ticket releases to improve access. But no major changes are imminent.
How Consumers Can Avoid Scalpers
When trying to buy tickets in California, here are some tips for fans to get tickets at face value and avoid scalpers:
- Sign up for pre-sales – Buy during presales before the general public on-sale
- Buy early – Purchase on the first day of sale to get the best choice before scarcity
- Use the box office – Skip online resale and buy at the venue’s box office
- Avoid street scalpers – Don’t buy from unauthorized scalpers near the venue
Buying as early as possible is key to finding face value tickets before scalpers can snap them up.
Conclusion
California has extensive anti-scalping laws under Penal Code Section 346 that:
- Ban ticket resales above face value
- Prevent mass ticket purchases for resale
- Impose transparency measures for resale platforms
Additional restrictions apply to ticket resale around sports venues in the state.
The laws aim to deter unfair practices by opportunistic scalpers. But sophisticated scalpers still find ways to resell tickets at high markups for popular events. More reforms may be needed to improve ticket access and affordability for fans.
Consumers’ best way to avoid scalpers is to purchase tickets early, sign up for pre-sales and use authorized sellers. While California’s anti-scalping laws provide some protections, buying tickets as soon as sales open is the surest way for fans to get tickets at face value.