Scalping refers to the act of buying tickets to concerts, shows, or sporting events with the sole intention of reselling those tickets for a profit. Scalpers often use bots and other technical means to buy up large quantities of tickets the moment they go on sale, making it difficult for regular fans to purchase tickets at face value. This practice has led many states to pass anti-scalping laws aimed at regulating or prohibiting ticket resales for profit.
New York’s anti-scalping law
New York passed its anti-scalping law, also known as the Ticket Speculation Law, in 2011. The law aims to crack down on scalpers by:
- Banning the use of ticket bots or other software to purchase large quantities of tickets
- Capping ticket resale prices at 45% above face value for events at venues with over 6,000 seats
- Requiring resellers to disclose specific details about the tickets they are reselling
- Prohibiting false representations about ticket availability
The law imposes fines and criminal penalties for violations. It applies to resellers whether they sell in-person, online, or through brokers.
Details of the anti-scalping law
Here are some key details about New York’s anti-scalping law:
Ban on bots and software
The use of bots and automated software to purchase large quantities of tickets is illegal. Bots allow scalpers to rapidly purchase tickets the moment they go on sale, making it very difficult for regular buyers to compete.
Price caps
For events at venues with over 6,000 seats, resellers cannot charge more than 45% above the face value price printed on the ticket. This cap applies to resellers whether they purchased the tickets originally or acquired them later on the secondary market.
Disclosure requirements
Resellers must clearly disclose key details about tickets they advertise for resale, including:
- Exact location of the seats
- Purchase price of the tickets
- Face value price printed on the tickets
This information must be disclosed in any advertisements or listings, whether online or offline.
No false representations
It is illegal for resellers to falsely represent that tickets are not available for an event in order to sell their own tickets at higher prices. Doing so takes advantage of fans under the false pretense of limited ticket availability.
Fines and penalties
Violations of the anti-scalping law can lead to civil penalties of up to $5,000 per violation. Willful violations constitute a class A misdemeanor crime, punishable by fines up to $10,000 and up to 1 year in jail.
Exemptions
There are a few key exemptions or exceptions to New York’s anti-scalping law:
- The law does not apply to ticket resales when the seller is an individual reselling 12 or fewer tickets per year.
- Tickets resold through authorized fan-to-fan exchanges are exempt. This includes places like StubHub when resellers go through a registered broker.
- The law does not apply to tickets for boxing, racing, and mixed martial arts events.
- Colleges and universities can set their own policies on ticket resales for sporting events.
So in summary, the anti-scalping law primarily targets professional ticket resellers who use unfair methods or make false claims when reselling large volumes of tickets.
Enforcement
New York’s anti-scalping law is enforced by the New York Attorney General’s office. The Attorney General has the power to investigate complaints and prosecute violations. Some key enforcement efforts since the law passed include:
- Suing major ticket brokers like StubHub for violations
- Recovering over $4 million in penalties from ticket resellers accused of violations
- Operating a ticket sales monitoring program during the Super Bowl in 2014
- Investigating online ticket retailers and brokers on a regular basis
The Attorney General maintains an online complaint form where New York residents can report suspected violations of the anti-scalping law.
Impact and effectiveness
There has been much debate about whether New York’s anti-scalping law has been effective in combating unfair ticket resales since it passed in 2011. Some key points include:
- Prices have remained high – Many feel that concert and sports tickets are still being resold for excessive prices despite the law.
- Enforcement is difficult – Scalpers find creative ways to evade enforcement, especially online.
- Secondary markets adapt – Sites like StubHub adjusted practices to comply on the surface.
- Benefits consumers – Forcing disclosure and banning false claims helps consumers make informed purchases.
- Hurts small sellers – Strict limits make it hard for individuals to resell even a few extra tickets.
Overall, the anti-scalping law appears to have made some progress in targeting large-scale abusive practices in the ticket resale market. But problems like high resale prices persist, perhaps because determined resellers find ways to skirt the regulations. Ongoing enforcement and adaptation of the law will likely be needed to better protect consumers and fair access to event tickets.
Comparison to other states
Many other states besides New York have passed legislation aimed at regulating ticket scalping and resales. Here is a comparison of some key scalping laws in different states:
State | Price Caps | Bot Ban | Disclosures Required |
---|---|---|---|
New York | 45% above face for large venues | Yes | Yes |
California | No price cap | Yes | No |
Ohio | 10% above face for major events | No | No |
Wisconsin | No price cap | No | No |
Texas | No price cap | No | No |
This comparison shows that New York’s law is among the strictest in banning bots and capping resale prices. Other states like Ohio and Wisconsin have targeted scalping practices to a lesser degree. Some states, like Texas, impose no regulations on ticket resales.
Arguments for and against the law
There are good faith arguments on both sides of this issue surrounding New York’s anti-scalping law:
Arguments in favor:
- Makes ticket buying fairer by preventing bots and bulk purchases.
- Caps help keep secondary prices affordable for regular fans.
- Transparency requirements protect consumers.
- Decreases incentives for black market scalping.
Arguments opposed:
- Price caps interfere with free market for tickets.
- Restrictions can limit availability as resellers hold back.
- Hard to enforce online and extraterritorially.
- Secondary markets help fans by allowing resale.
There are good points on both sides. Lawmakers have to balance consumer protections against free market principles. The optimal approach likely involves moderate regulation as opposed to an outright ban or unrestricted system.
The future of anti-scalping laws
Scalping remains a problem nationwide, with major events still seeing huge markups on the secondary market. As technology evolves, new practices like speculative ticket sales and micro-scalping constantly emerge. For anti-scalping laws to remain relevant, regulators must stay on top of these trends.
In terms of future developments, we may see:
- New laws banning speculative ticket sales where resellers advertise tickets not yet in their possession.
- Restrictions on ticket-buying software beyond just bots.
- More dynamic, event-specific price caps instead of fixed limits.
- Efforts by venues to void illegally resold tickets.
- Bans on ticket purchasing by residents of other states solely for resale purposes.
The specifics of anti-scalping legislation will continue evolving. But the underlying consumer protection goals are unlikely to change given ongoing complaints about unfair ticket markets. Regulators still have work to do in finding the right approach.
Conclusion
New York’s anti-scalping law, passed in 2011, takes aim at some of the most abusive practices in ticket resales. Key provisions ban ticket bots, cap resale prices, and increase transparency. Despite these efforts, issues around high markups, affordability, and enforcement persist. Ongoing refinement and vigilance will be required to achieve the legislations aims of fairness and consumer protection. Other states look to laws like New York’s as models for addressing scalping, but approaches vary nationwide based on policy priorities. Striking the ideal balance between free markets and regulation remains an elusive goal. Still, anti-scalping laws appear poised to grow stronger given public demands for fair access to live events.