Ticket Scalping Laws | LegalMatch They will identify emerging markets and try their hand at them before they get regulated or even find new loopholes. They just might want to have better odds of selling out, since that makes for a better experience for the band and its fans. In American law, the distinction between a sale and a license is day and night. THE OF Stephen K Happel and Marianne M. Jennings But he said other practices, such as ticket holdbacks and ticket brokers infiltrating band fan clubs or credit card promotions in order to buy pre-sale tickets skew demand and drive up prices on the secondhand market. Further, some states have preventative legislation in place. Arkansas, Florida and Louisiana require brokers to comply with regulations that protect consumers, such as a guarantee to issue a refund if the event is cancelled or the ticket doesn't arrive on time. 0000001161 00000 n WebScalping is the practice of buying up a desirable commodity, such as tickets to an event or copies of a hard to find toy, and then selling it at inflated prices once the demand exceeds the supply that you helped deplete. The economics of scalping have been studied extensively and there is widespread agreement that whatever gains there might be to allocative efficiency, they are more than outweighed by the wealth transfers that flow from consumers to scalpers and from socially wasteful rent seeking behaviors such as the use of bots. & The federal Better Online Ticket Sales Act of 2016, commonly known as the BOTS Act, was adopted as the law in the U.S. to prevent attempts to automate the process of purchasing tickets en masse using ticket bots. (This may not be the same place you live). The fraudster identifies an event to target. %PDF-1.6 % And then in 2000, the year StubHub was formed, internet technologies transformed resale by providing the digital infrastructure for ticket scalping and arbitrage to occur on an industrial scale and with a veneer of legitimacy. 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 trailer Two tickets, $600! One week before a new Missouri law will kick in legalizing ticket scalping at sporting events, scalpers like Bill, who declined to give his last name, combed their way through the crowd. Tennessee laws In some places its illegal to resell tickets above a certain price limit or if you dont have a business license for that kind of trade, in others it isnt. Vivid Seats does not even pretend to be a fan-to-fan exchange; it serves professional resellers only. Tickets to live entertainment events are one of the few products that are regularly priced below their market value. Its well known how we got here. 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.
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