California Lawmakers Address Ticket Resale Market Amid High Prices

California lawmakers are taking action in response to the troubling trends in the ticket resale market, where exorbitant prices for popular concert tickets have become the norm. Recent headlines highlighting Bruno Mars tickets selling for up to $2,000 and SZA tickets skyrocketing to $600 have prompted legislative proposals aimed at protecting consumers and regulating ticket prices.

Alarmingly High Ticket Prices

Earlier this year, tickets for SZA’s performance at Crypto.com Arena in Los Angeles were available at $35 but quickly surged to $600 just a day before they officially hit the market. In a similar scenario, tickets to see Sam Smith at the Castro Theater in San Francisco had an initial sale price of $120 but were resold for over $600 by scalpers.

These inflated prices have raised concerns among legislators, leading them to propose two bills aimed at overhauling the ticketing landscape. One bill aims to cap resale prices, preventing resellers from marking up tickets excessively, while the other seeks to prohibit the sale of tickets that resellers do not actually own at the time of listing.

Legislative Proposals: Protecting Consumers or Strengthening Monopolies?

Assemblymembers Issac Bryan from Culver City and Matt Haney from San Francisco are at the forefront of these legislative efforts. They argue that their proposals are focused on consumer protection. Interestingly, both bills have garnered support from Live Nation, the parent company of Ticketmaster, prompting concerns that these measures might inadvertently strengthen the company’s monopoly in the ticketing industry.

Recently, a federal jury found Live Nation had illegally acted as a monopoly, leading to ongoing legal challenges and scrutiny regarding its business practices. As the company awaits penalties, the proposed bills are still advancing through the California legislative process.

Divergent Opinions on Proposed Bills

Supporters, including various artists and independent venues, advocate for the legislation, asserting that it addresses pressing consumer issues. However, critics, including ticket resale competitors, express concern that the bills could limit consumer choice and reinforce Ticketmaster’s dominance in the market. For instance, Jose Barrera, the national vice president of the League of United Latin American Citizens, argues that these bills could enable a monopoly that fails to prioritize consumer interests.

Jack Sterne, a spokesperson from StubHub, commented on the legislation, warning against empowering Ticketmaster at the expense of competitive alternatives. Meanwhile, supporters assert that the bills serve to regulate the marketplace effectively, reducing price gouging and ensuring that tickets sold are legitimate.

Key Proposals: Assembly Bill 1349 and Assembly Bill 1720

Assembly Bill 1349 aims to ban the sale of speculative tickets—those that are not in the possession of the seller. Bryan emphasized that this bill is essential for protecting fans from excessive markup and predatory practices prevalent in the current market.

On the other hand, Assembly Bill 1720, known as the California Fans First Act, seeks to institute a 10% cap on ticket resale prices, including fees. Haney argues that scalpers have been exploiting both artists and fans, making it difficult for Californians to afford tickets for live events. He dismisses claims that this bill would aid Ticketmaster’s monopoly.

Controversial Market Dynamics

Opponents of the bills, like Diana Moss, vice president of the Progressive Policy Institute, criticize price caps as detrimental to market health, calling them “anti-consumer” and “anti-competitive.” According to her, restricting resale market prices might channel consumers back to Ticketmaster, which has been criticized for its high fees and subpar service.

Despite the controversies and significant lobbying efforts on both sides, these bills have made progress in California’s Assembly committees, signaling a potential shift in how live event tickets are sold and resold.

For fans and artists alike, these legislative efforts may reshape their experiences in the live performance landscape, aiming to create a fairer system in which concertgoers can access events without the burden of inflated resale prices.

Learn more about ticket resale laws and their implications on your concert-going experiences.