Ticket Scalping: Legalities For Resellers Explained

Ticket scalping, also known as ticket brokering, is the act of reselling tickets for an event at a higher price than the original face value. While there are no federal laws prohibiting the resale of tickets in the United States, individual states are free to enact their own scalping laws, which vary widely. Some states, like Texas, have no restrictions on ticket scalping, while others, like New York and New Jersey, impose strict limitations and penalties for those found guilty of illegally reselling tickets.

In addition to state laws, other laws make scalping illegal in raceways and the NFL. At events where reselling is not prohibited, it is still generally not allowed on stadium grounds, which is why scalping often occurs near events, such as concerts or baseball games.

Ticket scalping laws are often not enforced, as it is a nonviolent crime without a clear victim, and both parties are agreeable to the transaction. However, consequences for breaking these laws can include fines of up to $1,000 and/or a jail sentence of up to one year for first-time offenders.

Ticket Scalping Laws in the US

Ticket resale, also known as ticket scalping or ticket touting, is the act of reselling tickets for admission to events, often for a profit. Ticket scalping is a $5 billion industry in the US, and while there is no federal law that addresses it, individual states have their own legislation in place.

Ticket scalping is legal in most states, but some have laws in place to prevent it. New York, Alabama, Georgia, New Jersey, Pennsylvania, Illinois, and Massachusetts require a special license to resell tickets. Four other states leave the decision to individual municipalities. Some states also have legislation to address the resale of specific types of tickets, such as sports events.

The majority of US states do not limit the resale amount of event tickets or where and how they are sold. However, some states and venues encourage designated areas for resellers, and some prohibit ticket resale altogether. In some states, it is illegal to scalp tickets within 1500 feet of the entrance of a venue.

In addition to state laws, individual municipalities may also impose local rules against ticket scalping. For example, in New York City, state law permits prices above face value by only the greater of $5 or 10%. In Washington, anti-scalping laws restrict the resale of tickets to no more than 10% above the original cost. In California, scalping tickets to entertainment events is illegal unless the seller has written permission from the venue owner or operator.

To combat the use of bots to buy tickets in bulk and then resell them at a higher price, Congress passed the Better Online Tickets Sales Act of 2016, or BOTS Act. This federal law prohibits "the use of software to enable scalping" and allows state attorneys general to bring civil actions to enforce it.

Ticket Scalping Laws in the UK

Ticket resale, also known as ticket scalping or ticket touting, is the act of buying tickets from licensed sellers and then selling them for a price determined by the reseller. While ticket scalping is not illegal in the UK, there are laws in place to protect consumers from fraudulent or misleading practices.

Laws and Regulations

In the UK, the resale of football tickets is illegal under the Criminal Justice and Public Order Act 1994. This legislation makes it an offence to sell tickets for a designated football match without authorisation from the organiser. To get around this, some people would sell small items such as pins or programmes at inflated prices and include a "free" ticket, but this practice was banned under the Violent Crime Reduction Act 2006.

In addition, the Ticket Touting (Designation of Football Matches) Order 2007 clarified what constitutes a football match to avoid any confusion. The Consumer Rights Act Amendment 2015 requires sellers to identify the specific seat or area of the ticket and disclose its face value.

While there are no legal restrictions on reselling tickets for other events such as concerts, individual organisations may prohibit it. For example, Wimbledon has rules against ticket reselling.

Enforcement and Compliance

The UK government has taken steps to protect consumers from ticket scalping, particularly in the secondary market. In 2018, new rules were introduced to require ticket resellers to provide more information to buyers, including the unique ticket number, location, and original price of the ticket. These measures aim to increase transparency and prevent consumers from being ripped off by high prices or misleading information.

The Competition and Markets Authority (CMA) has also taken action against secondary ticketing websites, requiring them to remove misleading messaging about ticket availability and inform customers of the risk of being turned away at the door.

Ongoing Challenges

Despite these efforts, ticket scalping remains a challenge, especially with the rise of online sellers. The secondary ticket market in the UK is worth over £1 billion a year, and professional touts can "harvest" tickets, restricting supply and driving up prices for genuine fans.

To address these issues, the CMA has proposed stronger laws, including banning platforms from allowing resellers to sell more tickets than they can legally buy and introducing a licensing system for secondary ticket platforms. These measures aim to protect consumers from unscrupulous resellers and enable authorities to act quickly against non-compliant platforms.

Ticket Scalping Laws in Australia

Ticket scalping is the practice of buying tickets for an event and reselling them at a higher price, often when the event is sold out. In Australia, the laws regarding ticket scalping vary from state to state.

New South Wales

In New South Wales (NSW), it is illegal to deliberately purchase tickets for the sole purpose of reselling them at a higher price. The NSW Fair Trading Act 1987 was amended in June 2018 to include these ticket scalping laws. According to these laws, tickets cannot be resold at excessively high mark-ups, specifically no more than 10% of the original retail price plus transaction costs. The penalty for non-compliance can be up to $110,000 for corporations and $22,000 for individuals.

South Australia

South Australia has similar laws to NSW, with the Fair Trading Act 1987 being reformed to include ticket scalping protections. Since December 2018, it has been an offence to sell tickets for sporting or entertainment events in South Australia that are subject to resale restrictions for more than 110% of the original supply cost. The penalty for non-compliance is the same as in NSW, with a maximum of $110,000 for corporations and $22,000 for individuals.

Victoria

In Victoria, it is an offence to resell or advertise tickets to declared major events at over 10% of their original value. The penalties for this offence range from $806 to $483,500. However, it is important to note that only a few specific events are covered under the Major Events Act 2009, leaving a grey area for other events.

Queensland

Queensland adheres to the 10% rule for ticket mark-ups, but their legislation only covers specific venues operated by Stadiums Queensland, such as the Brisbane Entertainment Centre.

Western Australia

Western Australia introduced the Ticket Scalping Act in 2021, which aims to prevent purchasers from paying more than a 10% mark-up on tickets. This law prohibits anyone from reselling a ticket for an event in Western Australia for more than the original price plus 10%.

National Laws

On a national level, the Electronic Ticket Resale Service Information Standard requires all websites primarily reselling tickets to events in Australia to identify themselves as reseller websites and display the original ticket price. Additionally, the Australian Consumer Law applies to the sale of all tickets to events in Australia, ensuring that tickets are fit for purpose, accurately described, and sold at the advertised price.

Ticket Scalping Laws in Japan

Ticket scalping, or ticket brokering, refers to the act of reselling tickets for an event at a higher price than the original face value. In the past, ticket scalping laws in Japan only prohibited the practice on streets and other public places under local ordinances. However, in December 2019, Japan's National Diet approved legislation to ban ticket scalping ahead of the 2020 Tokyo Olympics and Paralympics.

The new law prohibits the resale of tickets for concerts and sports events at prices higher than their original selling price. It also bans the purchase of tickets with the intention of scalping. The legislation covers tickets that designate seats or spectator names in advance, as well as QR codes and IC cards used as electronic tickets. Event organisers are required to make efforts to identify ticket holders.

Violators of the law may face a fine of up to ¥1 million, a jail term of up to one year, or both. The law includes online reselling, but invitation tickets and those distributed for free are exempt. If someone is no longer able to attend an event, they can resell their tickets through the organiser's official website.

Ticket Scalping Laws in Canada

In Canada, ticket scalping laws vary by province. Here is a summary of the regulations in Ontario and British Columbia:

Ontario

Ontario's Ticket Sales Act outlines rules for the sale of tickets to events in the province, aiming to promote fairness, transparency, and consumer protection. The act includes provisions such as:

• Disclosure requirements for ticket businesses, including the face value, total price, applicable fees, and seat location.
• A ban on reselling tickets above face value without offering a money-back guarantee or written confirmation of validity from the primary seller.
• Prohibition of the use and sale of ticket-buying software or "bots" that scoop up large quantities of tickets for resale at inflated prices.
• Fines and penalties for non-compliance with the act, ranging from $10,000 to $25,000.
• Requirements for primary ticket sellers to disclose the number of tickets available and their distribution method.

However, in 2019, the Ontario government scrapped a key part of the law that would have capped ticket resale prices at 50% above the original face value. This decision was made due to concerns about enforceability and the potential for driving consumers towards the black market.

British Columbia

British Columbia's proposed Ticket Sales Act focuses on regulating the sale of tickets to live cultural, recreational, and sporting events. Some key provisions include:

• Clear and prominent disclosure of prices.
• Refund guarantees by secondary sellers and ticketing platform operators.
• Disclosure of key terms and conditions by primary and secondary sellers.
• Requirements for ticket resellers to identify themselves as secondary sellers.
• Prohibition of the sale of speculative tickets that the seller does not possess.
• Enabling civil action by consumers or ticket-selling businesses if they suffer losses due to contraventions of the legislation.

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