California Ticket Bill: Caps Resale Prices & Targets Ticketmaster
- California lawmakers are taking aim at the often-turbulent world of ticket resale, introducing legislation that could significantly alter how fans access live events within the state.
- The move comes as concertgoers and event attendees continue to grapple with soaring ticket costs, fueled by a complex resale market often dominated by bots and professional brokers.
- It follows closely on the heels of another bill, AB 1349, which recently advanced to the California Senate.
California lawmakers are taking aim at the often-turbulent world of ticket resale, introducing legislation that could significantly alter how fans access live events within the state. Assemblymember Matt Haney (D-San Francisco) unveiled the California Fans First Act, , a bill designed to cap resale prices at no more than 10% above the original face value of the ticket.
The move comes as concertgoers and event attendees continue to grapple with soaring ticket costs, fueled by a complex resale market often dominated by bots and professional brokers. The legislation, designated AB 1720, specifically targets concerts, theater performances, and comedy shows, excluding sporting events from its purview. The intent, according to supporters, is to curb predatory pricing practices and ensure live entertainment remains accessible to a wider audience.
AB 1720 isn’t arriving in a vacuum. It follows closely on the heels of another bill, AB 1349, which recently advanced to the California Senate. AB 1349 tackles a different facet of the resale problem: speculative ticket sales. If passed, it would require resellers to actually possess the tickets they are listing for sale, effectively banning the practice of selling tickets before they’ve been acquired. It also proposes increasing the civil penalty for violations from $2,500 to $10,000.
The combined effort signals a growing determination in Sacramento to regulate the state’s resale ticketing market, a sector that has long been criticized for its lack of transparency and potential for abuse. The issue has gained prominence as primary ticket vendors, particularly Ticketmaster and its parent company Live Nation, have come under increased scrutiny for their market dominance and associated fees.
Live Nation, which controls approximately 80% of the primary ticket market, finds itself facing legal challenges from both the Department of Justice and the Federal Trade Commission. These lawsuits allege monopolistic practices and illegal ticketing practices, adding further pressure to the industry. Dan Wall, Live Nation’s vice president of corporate and regulatory affairs, recently acknowledged the problem, stating, “We’re trying to convince the federal government and state governments to get on the same page of recognizing where the problem is, which is overwhelmingly in the resale industry, and trying to do something about it.” The company itself has publicly voiced support for efforts to protect fans and artists, framing AB 1720 as a direct response to “predatory resale sites.”
However, not everyone is convinced that capping resale prices is the right approach. Diana Moss, the director of competition policy at the Progressive Policy Institute, argues that AB 1720 “puts consumers last, not first.” She contends that the bill “buys into the false narrative that the secondary market is to blame for all problems in ticketing, deflecting attention from the Live Nation-Ticketmaster monopoly.” Moss believes that capping resale prices will ultimately decimate the secondary market – the only area with genuine competition – and further consolidate power in the hands of Live Nation.
The debate highlights a fundamental tension: is the resale market a symptom of a larger problem – the dominance of a single ticketing giant – or is it the root cause of inflated ticket prices? Critics of the resale market point to the use of bots and the practice of “scalping” as drivers of price gouging, while proponents argue that the secondary market provides a legitimate outlet for fans who are unable to secure tickets through primary channels.
California’s move isn’t isolated. Similar legislative efforts are gaining traction across the country and internationally. The U.K. Recently announced plans to ban the resale of tickets at prices exceeding face value, and Maine successfully implemented a 110% cap on resale prices . Other states, including New York, Vermont, Washington, and Tennessee, are currently considering similar ticketing regulations.
The push for greater regulation comes after years of complaints from concertgoers about exorbitant ticket prices. Rising demand for live events, coupled with limited supply, has fueled a thriving secondary market, making it increasingly difficult for fans to secure tickets at reasonable prices. The situation has prompted calls for greater transparency and accountability within the ticketing industry, and these new legislative proposals represent a significant step towards addressing those concerns.
The final legal language and enforcement mechanisms for AB 1720 are still being finalized by state lawyers. The bill’s journey through the California legislature will be closely watched by industry stakeholders and fans alike, as it could set a precedent for other states grappling with the challenges of the modern ticketing landscape. Whether it will ultimately succeed in curbing predatory pricing and making live events more accessible remains to be seen, but it undoubtedly marks a turning point in the ongoing debate over ticket resale.