Business News Legal Live Business

New York passes new secondary ticketing laws

By | Published on Monday 25 June 2018

Live Music

The New York State Legislature last week passed a new bill to extend and expand rules regarding the resale of tickets in the state. In the US, most regulation of ticketing happens at a state rather than US-wide federal level.

The new rules in New York will require resellers to state when they are selling tickets which they do not yet possess, which most often happens when brokers list tickets for in-demand events before primary tickets go on sale. Resellers must also gain confirmation from the buyer that they are aware of this. If sellers are unable to provide these tickets, or provide them at the stated price, they must provide a refund within ten days of the buyer requesting their money back.

Other rules parallel those being introduced elsewhere in the world, including in the UK. So, sellers must also provide the full cost of tickets, including all fees, upfront, rather than at the end of the transaction. Secondary ticketing platforms will also be required to make it clear that they are not primary sellers and prices may exceed the original face value of tickets being resold.

The new legislation passed two rounds of voting by New York politicians with overwhelming majorities. One of those who voted against it, Senator Liz Krueger, had previously argued that the new laws weren’t strong enough, because they failed to introduce rules providing transparency on the number of tickets being held back from general sale by artists and promoters.

As ever, trying to present itself as the friendly face of secondary ticketing, eBay’s resale site StubHub issued a statement to Deadline saying: “As a fan first business, StubHub has always advocated for pro-consumer legislation that supports a competitive, transparent, and safe ticket market for fans. We are proud to have worked closely with the New York Legislature on a legislative package that extends this important statute for another three years and takes comprehensive steps to protect New York fans and ensure they benefit from having choice in a free and open ticket market”.

Before it is implemented, the new laws need to be signed off by New York Governor Andrew Cuomo.