LOS ANGELES, April 25 (Reuters) - The Taylor Swift
concert ticket debacle two years ago is leading state and
federal lawmakers to take aim at sales practices that they say
are deceptive or predatory to music fans.
A main goal of venues and musicians is to outlaw speculative
sales when a seller offers a ticket they do not yet have. In
some cases, they ask thousands of dollars for a ticket that they
can buy later from the primary seller for $200 or less and reap
the profit.
In Maryland, a new law will make speculative ticket sales
illegal starting July 1.
"This is a huge first step," said Audrey Fix Schaefer,
communications director for I.M.P., the company that operates
Maryland's Merriweather Post Pavilion and other venues that
often receive complaints if consumers pay high prices or fail to
receive promised tickets.
Arizona recently cleared similar legislation and nicknamed
the measure the "Taylor Swift Act." When fans were unable to
snag Eras Tour tickets through Ticketmaster, many paid thousands
to buy them through resellers, also known as secondary sellers,
or were tricked by sites selling fake tickets.
Swift has not commented on the ticketing proposals, and a
representative for the singer did not respond to a request for
comment.
Nationwide, bills have been introduced in two dozen states
to address event ticketing practices, according to the National
Conference of State Legislatures.
In Illinois, a ban on speculative tickets has passed the
state Senate. The Colorado House has cleared legislation to
require more pricing transparency and a ban on websites designed
to mimic legitimate ticket sales sites, which may trick
consumers into thinking they are buying directly from a venue.
At the same time, venues and the world's biggest musicians
are pushing for federal reforms.
Companies including Ticketmaster and SeatGeek committed to
greater transparency, known as "all-in" or "upfront" pricing of
a ticket's cost with fees from the beginning, at a White House
event last summer with President Joe Biden, part of his effort
to crack down on what he called "junk fees" imposed by ticket
companies, banks, airlines and others.
"There's more to do to address the problem of online
ticketing," Biden said at the time.
ARTISTS BACK FEDERAL BILL
On Thursday, 250 artists including Billie Eilish and Finneas
O'Connell, Green Day and Fall Out Boy voiced support for the
Fans First Act, a bill pending in the U.S. Senate. No votes on
the measure have been scheduled.
The legislation would prevent speculative ticket sales when
a seller does not have a ticket. It also would require "all-in"
pricing, outlaw deceptive websites and strengthen enforcement of
penalties for bot usage to scoop up tickets.
"We are joining together to say that the current system is
broken," the artists said in a letter to congressional sponsors
of the legislation. "Predatory resellers and secondary platforms
engage in deceptive ticketing practices to inflate ticket prices
and deprive fans of the chance to see their favorite artists at
a fair price."
So-called spec tickets often are advertised with warnings
such as "only 4 left!," falsely suggesting to consumers that
they should buy immediately or miss out. In some cases, actual
tickets never turn up or brokers send fraudulent tickets.
Ticket-selling platforms said they supported some of the
proposed legislative changes.
Ticketmaster, a unit of Live Nation Entertainment ( LYV )
that sells primary and secondary tickets, said it backed bans on
speculative sales and deceptive websites, as well as better
enforcement of anti-bot legislation.
StubHub "does not allow the sale of speculative tickets, and
sellers found to be in breach of our seller policy face
consequences such as fines and removal from the platform," a
company spokesperson said. If a buyer has an issue, "StubHub
will find an equivalent or better ticket to get a buyer into an
event, or provide a full refund."
The company said it supports U.S. House and Senate versions
of a bill called the Ticket Act. The House version would outlaw
speculative ticketing, among other practices, while the Senate
measure calls for all-in pricing.
Venues and artist groups have formed a coalition called Fix
the Tix, led by the National Independent Venue Association
(NIVA), that is pushing for passage of the Fans First Act, which
they say offers the strongest protections for ticket buyers.
Stephen Parker, executive director of NIVA, said that
bill is "the most fan- and artist-friendly ticketing legislation
that Congress has ever introduced."
"It makes illegal the abusive, predatory behaviour from
predatory resale platforms and ticket brokers," he said, and
also calls for a national evaluation of the ticket resale
market.