What is really going on here, and what explains why resale sites are trying to make ticket transferability an antitrust issue, is that the vast majority of their business is not fan-to-fan resale but rather high-volume professional ticket resellers. 0000008251 00000 n ticket No monopolist makes that decision as StubHub learned when a court threw out its antitrust case trying to claim that the Golden State Warriors monopolized the resale of tickets to Golden State Warriors home games. endstream endobj 13 0 obj<> endobj 15 0 obj<> endobj 16 0 obj<>/ProcSet[/PDF/Text]/ExtGState<>>> endobj 17 0 obj<> endobj 18 0 obj<> endobj 19 0 obj<> endobj 20 0 obj<> endobj 21 0 obj<>stream gazpacho June 22, 2005, 4:30pm #4. Law, About 0000010487 00000 n Login. In the US, different states apply different policies o manage scalpers and resellers. And the mothers milk of that industry is access to tickets, particularly tickets to the most popular shows and sporting events. They have attacked artists like Eric Church and Bruce Springsteen for restricting transferability. These tools empower hundreds of artists to make individual choices about the best strategy for selling their tickets to their fans. As James Carville might say, Its the tickets, stupid! All the rest, including the antitrust-flavored attacks on Live Nation and Ticketmaster, are just camouflage for the one thing that the resale sites want: government intervention to keep tickets fully transferable. Ticket legislation is a Ticketing industry characteristics that appeal to scalpingbots: The legitimacy of the ticket scalping situation is different across the world. In American law, the distinction between a sale and a license is day and night. They make a superficially alluring argument that resale is fan-to-fan exchange among consumers who purchased a ticket at face value, as a result own it, and should therefore have the freedom to resell it without interference. 16 people have successfully posted their cases, 5 people have successfully posted their cases, 10 people have successfully posted their cases, 6 people have successfully posted their cases, 20 people have successfully posted their cases, 7 people have successfully posted their cases, 9 people have successfully posted their cases, Can't find your category? The best estimates are that over 70% of their business is serving professional resellers. Once you understand how scalping actually works, it is not surprising to hear that reported cases of ticket scalping go back to at least the 19th century, when we have evidence that tickets to Charles Dickenss tour in the States in the 1860s were scalped. No one seemed to notice the Napster-like product that StubHub had created, which allowed concert tickets rather than songs to be resold over the internet without any compensation to the artist. Is Scalping Illegal (Ticket Scalping: All You Need To Click here. Rhode Island and North Carolina both limit the amount charged above face value to $3. Law, Products Scalping Tickets %%EOF B| ;Tm}l+Sy,q?Wx_D,6Xd'AY)&-}YpcIbb(Y(s{F\vX?z?W]!alAE'etOR,H AxdNO^Fdk|n R"dZ8iN!OA- 0q.ds`cPy#/%:n^A57i]n`pkN):5i8)h+%@~9t* R Mass purchases dont allow customers to get tickets to the events from the vendor and it causes customer outflow; Tickets sold at inflated prices cause discontent among the customers and leadto a public relations crisis; Vendors keep selling tickets at low prices aiming to sell as many tickets as possible relying on profits from food and merchandise; The absence of ticket reselling policies allows scalpers to put any prices approved by the market; Uncontrollably high ticket prices create customers outflows; Simulated human behavior makes most rule-based defense system ineffective; Distributed attacks that make IP blocking ineffective; Residential proxies that make reputation-based defenses ineffective; Can be beaten by modern sophisticated bots with image recognition technologies; Deep Machine Learning analysis prevails over image-based challenges and allows to filter bot before they make a purchase; AI-powered back-end engineensures security, provides the best reporting system and user experience; Constantly monitoring your website traffic to detect bots; Managing ticket scalpers is crucial for long term success and the reputation of your business; Preventing ticket scalping will help ticket price regulation in the overall market; Powered by AI technology, bad bots bypass CAPTCHAs. , continuously scan seat map inventories for newly released or premium seats, and instantly purchase available tickets to resell them. Ticket scalping degree in 1983 from the University of California, Hastings College of Law and practiced plaintiffs personal injury law for 8 years in California. The reselling debate . S T A T E O F T E N N E S S E E OFFICE OF THE The BOTS Act makes the resale of tickets purchased using bot technology illegal and sets a fine of $16,000 for violations of the act, which is enforced by the U.S. Federal Trade Commission (FTC). What is ticket scalping? Why should you prevent it? - geetest That is a world in which scalpers and resale sites are incentivized to get tickets by any means possible, and both artists and consumers are cheated. Taxes in Retirement Seminar at The John P. Holt Brentwood Library, Nashville Area Chamber Of Commerce: Small Business Week Feature: Faith Family Medical Center, Whos Hiring In The Nashville Area: This Weeks Newest Job Openings, Nashville Area: Check Out 5 Local Homes On The Market, Nashville Area Chamber Of Commerce: Meet The Veterans | Shane Minnick, Retired Special Forces Senior Enlisted NCO. scalping tickets illegal Ticket Scalping (This may not be the same place you live). This can be related to music, sports or culture. Depending on your circumstances, a user ranked as suspicious could be referred for manual review or blocked outright, for example. The United Kingdom. WebStates like Arkansas, Kentucky, and Missouri ticket scalping is illegal. Instead of legislating at the state level, Maryland, Ohio, Virginia and Wisconsin delegate the authority to local governments. Transit Plan Reconsidered + National Police Association Sues MNPD, Targeted Shooting Near Downtown + Total Abortion Ban Lifted, Tennessee Titans New Stadium + High Schooler Denied At Senior Prom, T-Mobile Tuesdays: Get Free Stuff And Great Perks Every Week, Legendary Swimmer and EverWalk Founder Diana Nyad to Lead Free Music City Walk. scalping In the US, there is no federal law that addresses scalping. For example, if a scalper gets a first warning on a Sunday, the process begins again on Monday. Yes and no. Analyze your needs and options and take serious measures right now. Without it, our site might not function properly. Whats more, some tickets are physical and others digital e-tickets. In the UK you can get tickets from outside most stadiums, but in Germany and Holland the police are strict about it. Buying something at one price and selling it at a higher price has been the basis of commerce for thousands of years. In Ontario, reselling tickets above the face value is completely illegal due to the Ticket Speculation Act. Currently, ticket scalping is illegal in 12 states. He was sentenced to jail time, as well as a fine. Most recently, she taught English as a second language for Montgomery County Public Schools in suburban Washington, D.C. Now she devotes her time to writing on legal and environmental topics. There are, however, some tools and technologies that will help the vast majority of businesses. Sources: TCA 39-17-1105 and Davidson County Criminal Court Clerk. Depending on what was popular in the era, ticket resellers might focus on a specific sport, genre of music, theatrical show, or comedy act. Ticket resale became a $5 billion industry in the U.S. alone. Submit your case to start resolving your legal issue. Limited availability of tickets for certain hot events; Scanning ticketing platforms for hot events; Scraping event information and ticket prices; Deploying scalping bots to automate mass purchases; to resell tickets at a price 10% higher than the face value of the ticket. It does not work at all if artists are able to deliver tickets directly to the fans who want to attend the show at the prices the artist selected because, to state the obvious, those people wont resell their tickets. endstream endobj 88 0 obj<>stream They claimed it was anticompetitive when Ticketmaster transitioned from paper tickets to secure digital ticketing. The see no evil stance that the likes of StubHub embrace is understandable commercially and legally. StubHub flourished, becoming one of Americas fastest-growing private companies before it was acquired by eBay in January 2007 for a reported $310 million. Your However, the BOTS Act of 2016 prohibits the use of software to enable scalping. Ticket bots can do this because they enable buyers to buy tickets in bulk by completing online forms automatically so it is done faster than a human can do it with their keyboards. 12 13 The Laws on Reselling Tickets | Pocketsense Secondary Ticket Marketplace Guide - Squire Patton Boggs Resale sites have a long history of complaining about anything that might lessen the flow of tickets to the resale marketplaceand of lodging those complaints without regard to obvious consumer interests like reducing fraud. And yet artists are confronted with the reality that whenever demand at whatever pricing they choose exceeds supply, they have created a scalping or arbitrage opportunity. One of antitrusts most revered principles is that the antitrust laws were enacted for the protection of competition, not competitors. The principle has been invoked on countless occasions when some competitors antitrust claim, filed ostensibly to promote consumer interests, actually served only its selfish interests. Despite those safeguards, large numbers of tickets showed up on ticket resale sites the next day, leaving fans to wonder what can be done to combat such scalping practices. 0000000016 00000 n MSN Money: Two Ways of Looking at Ticket Scalping, ABA Forum on the Entertainment and Sports Industries: A Brief Overview on Ticket Scalping Laws, Secondary Ticket Markets and the StubHub Effect, SportsBusiness Daily: Secondary Ticket Market Has Soared Even as Economy Has Faltered. Nashville May Ban Ticket Scalping Near Venues | Nashville, TN Resale, the argument goes, increases allocative efficiency because scalpers distribute tickets to those who will pay the most money for them. When ticket restrictions, such as household limits, are violated, Ticketmaster can revoke the tickets. The scalper will make moves to resell the tickets either right away or at a later date, through various methods including social media, specialized websites, classified ads and more. For example, in Australias New South Wales, scalping is illegal but only if youre reselling at more than +10% of the ticket price. In the case of scalping bots, strong script and bot detection and mitigation measures will certainly help. Budnick said bots are absolutely used. After that, they resell them with inflated prices. The BOTS Act is designed to make this practice illegal. In fact, Ticketmaster facilitates face value transfers with its secure digital transfer technologies. Ticketmaster estimates that 20-30% of the tickets it puts on sale for popular artists are improperly diverted to the secondary market by bots. It is aimed at the instant mass acquisition of tickets to resell them at a higher price and generate a profit. I have no experience with France. While more tickets are being resold, the price of those tickets is declining slightly. If you know you can't sell them, then you're not going to buy them.". 0000001362 00000 n The more successful they are, the bigger problem this becomes. 578.395. Perhaps the most famous event linked with ticket scalping in the 21st century was the 2008 Olympics in Beijing. Have a great Sunday! The council bill, sponsored by councilmembers Freddie O'Connell and Nancy VanReece, would make it a misdemeanor to sell or offer for sale tickets on public rights-of-way and sidewalks adjoining Ryman Auditorium, Ascend Amphitheater, the Tennessee Performing Arts Center, War Memorial Auditorium and First Tennessee Park. Certain types of scalping are illegal in many states, mainly ticket scalping. Tennessee is a state known for concerts and even hockey! They just might want to have better odds of selling out, since that makes for a better experience for the band and its fans. Make Scalping Illegal Across The US Also, under the city ordinance, penalties reset after each sports event. On every transaction, these resale sites are getting a 25-40% commission from the consumer (and another 10-15% commission from the seller if it is an ordinary fan and not a broker). 0000002252 00000 n Look at the recently unveiled Ticket Buyer Bill of Rights that a coalition of reseller front groups published: two of the pillars of this proposal are The Right to Transferability and a Right to Set the Price, so that companies who originally sold the tickets cannot dictate to fans for what price they can or cannot resell their purchased tickets. Fans would not benefit from this at all. After that, they resell them with inflated prices. At the soccer WC last summer in Germany I saw a lot of people walking around city centers with "I need a The question of how to prevent ticket scalping is a complicated one, because it comes in various guises and concerns several different industries. Web(815 ILCS 414/1.5) (was 720 ILCS 375/1.5) Sec. endstream endobj 73 0 obj<> endobj 75 0 obj<> endobj 76 0 obj<>/XObject<>/ProcSet[/PDF/Text/ImageB]/ExtGState<>>> endobj 77 0 obj<> endobj 78 0 obj<> endobj 79 0 obj<> endobj 80 0 obj<> endobj 81 0 obj<> endobj 82 0 obj<> endobj 83 0 obj<> endobj 84 0 obj<> endobj 85 0 obj<> endobj 86 0 obj<>stream Ticket scalping "This is not a localized problem," said Fielding Logan, who represents The Black Keys and Eric Church, with Q Prime Management. Library, Bankruptcy No one seemed to notice the Napster-like product that StubHub had created, which allowed concert tickets rather than songs to be resold over the internet without any compensation to the artist. Sale of tickets at more than face value prohibited; exceptions. Is Ticket Scalping Illegal? In an industry first, both bands also adopted all-in pricing so fans see the total cost of a ticket right upfront with no surprises at checkout. Perhaps the outcome will be as in sports, where Ticketmaster, StubHub and SeatGeek have all cut deals with leagues and teams for managed ticket resale. She also taught civil procedure in the Paralegal program at Santa Clara University. scalping illegal Ticket scalping is illegal for all or for some types of events in the United Kingdom, [12] Sweden, [13] Australia, [14] Israel and parts of Canada. 0000004926 00000 n 954 0 obj <> endobj This leaves customers with no choice but to buy them at wild costs. States like Arkansas, Kentucky, and Missouri ticket scalping is illegal. Tennessee anti-ticket bot law has no prosecutions Gj~X: I#_gpQXRnRJ>L\:p(N;a^8m!" Webare italian traffic fines enforceable in uk; unity embedded browser; famous countertenors in pop music; was lord merton being poisoned; roy bentley obituary Vivid Seats does not even pretend to be a fan-to-fan exchange; it serves professional resellers only. NYC Criminal Court Opinions and Cases | FindLaw Those laws may be different from the law in the state in which the seller resides. endstream endobj 90 0 obj<>stream @ Q Detecting ticket scalping bots is hard. Ticket Scalping: Is It Illegal Tickets The fraudster identifies an event to target. In Florida, up until a bit over a decade ago, ticket scalping was illegal. In Florida, StubHub made over $6,500 in campaign donations to members of the state legislature in support of a 2006 bill to amend Florida's 61-year-old anti-scalping laws. 0000001241 00000 n This is why it is imperative to take measures and stop scalpers and resellers from mass purchasing your tickets.