California Governor Newsom signs law banning speculative ticket sales
- The new law requires ticket resellers to implement reasonable measures to prevent speculative listings.
- Many fans buy these tickets not knowing that they are listed at a price greater than they would actually be when they eventually go on sale.
- The legislative path for Assembly Bill 1349 involved intense lobbying from major entertainment and ticketing firms.
Banning Speculative Listings and Restricting Reseller Software
The new law requires ticket resellers to implement reasonable measures to prevent speculative listings. Sellers who violate these rules face misdemeanor charges and associated penalties. According to the legislation, the use of software to manipulate venue purchasing limits is also outlawed. Assemblymember Isaac Bryan, a Culver City Democrat who authored the bill, pushed for the legislation after an incident where he and a friend encountered expensive tickets listed for a Hollywood Bowl concert before official tickets even went on sale.
Many fans buy these tickets not knowing that they are listed at a price greater than they would actually be when they eventually go on sale. In the worst instances, fans never actually acquire the ticket that they paid for, leaving our small venues in California ultimately on the hook.
Assemblymember Isaac Bryan
Political Divisions and Industry Lobbying Factions
The legislative path for Assembly Bill 1349 involved intense lobbying from major entertainment and ticketing firms. Live Nation, the parent company of Ticketmaster, initially backed the measure, arguing in a January statement that nobody should profit by listing tickets they do not possess. Critics, however, suspected that Live Nation’s support aimed to disadvantage competing platforms. Meanwhile, ticket reseller StubHub spent $4.4 million over the two-year legislative session lobbying against the bill and several other measures. In a notable shift, StubHub eventually supported the final version of the legislation, which turned out less favorable to Live Nation.
Concerns Raised by Independent Venues and Future Legislative Revisions
Independent music venues and event promoters opposed the final version of the bill, arguing it creates new liabilities while shielding major resale platforms. Stephen Parker, executive director of the National Independent Venue Association, stated that the legislation puts small businesses and nonprofits at risk. The association argued that amendments protect marketplaces like StubHub by exempting them from being classified as speculative sellers, even though speculative transactions occur on their platforms. Governor Newsom acknowledged these concerns in his signing statement, noting that while exemptions for certain sellers might have valid justifications, the carve-outs require further debate. He encouraged the author to collaborate with stakeholders to refine the policy. Lawmakers also considered a separate measure during the session to cap ticket resale markups at 10%, but that bill stalled in the Senate Appropriations Committee in August.