Created byFindLaw's team of legal writers and editors As previously mentioned, each state has its own scalping laws. And that created a market ripe for price gouging. You can learn more about Jaclyn here. Some states simply identify large price increases as improper, but use vague language, leaving sellers and consumers to guess where that line should be. in prison and/or fine of up to $5,000). The practice of scalping is currently defined as a misdemeanor by 15 US states individually, with nothing more than a slap on the wrist for destroying an entire sector of the economy and forcing consumers to use sketchy third parties to purchase potentially life-changing products and services. When scalpers buy large quantities of tickets, they take the risk of failing to resell all of them, losing money. Keep in mind that laws are always subject to change. Code of Massachusetts Regulations (CMR): 940 CMR 3.18, *The governor signed an executive order to address price gouging amid the COVID-19 pandemic. I sold the tickets for $500 apiece, making back half of the money for my season tickets in one sale. *Senate Bill 6699 has been introduced prohibiting price gouging at the time of disaster. I immediately checked Stubhub - they had 172 tickets for the event, all starting at three times the face value of the ticket! I'm wondering where this fits in this argument of ticket brokering being legal/illegal, etc. In most states, price gouging during a time of emergency is considered a violation of unfair or deceptive trade practices law. Learn more about FindLaws newsletters, including our terms of use and privacy policy. In modern times, scalpers use automated processes to purchase tickets via online retailers. in prison and up to $10,000 fine). NC Legislature: 55-1-22. Charged as an unfair business practice; up to $40,000 per violation (an additional $5,000 if victims were elderly), injunctive relief, and restitution. I was able to live like the wealthy, eating at the premium buffets, extra wide seats, full bars with lounges and player meet and greets, all for less than the price of a pair of cheap seats for the season. A few states regulate ticket scalping. Buyer is denied admission to the event (This does not apply if the buyers action or omission caused their not being able to get in.). These states are as follows: Idaho; Iowa; Kansas; Maine; Minnesota; Mississippi; Montana; Nebraska; Nevada; New Hampshire: North Dakota; South Dakota; Oklahoma; Texas; Utah; Vermont; Washington; West Virginia; Wyoming. They are: Alabama, Georgia, Illinois, Massachusetts, New Jersey, New York and Pennsylvania, and four states leave it up to local municipalities to make scalping laws. Subscribe to our newsletter and learn something new every day. *New Jersey has declared a state of emergency in response to COVID-19, activating the provisions above. Event is canceled. Ticket scalping might be legal in most cases, but it is viewed in a poor light by fans, artists, and venue owners alike. It prohibits price increases of more than 10%. In some US states, resale is actively encouraged, and certain venues assign specific areas outside where the scalpers can operate. What if a scalper buys up a whole section at once? FindLaw.com Free, trusted legal information for consumers and legal professionals, SuperLawyers.com Directory of U.S. attorneys with the exclusive Super Lawyers rating, Abogado.com The #1 Spanish-language legal website for consumers, LawInfo.com Nationwide attorney directory and legal consumer resources. There are 16 states in the United States where there are restrictions on ticket sales above face-value, namely: Arkansas - Ark. Selling or renting goods and services "used to preserve, protect, or sustain life, health, safety" at unreasonably excessive prices after an emergency declaration or abnormal market disruption. A ticket's service fee cannot be more than $3, unless . That means the answer differs based on where you live. For example, some states prohibit the scalping of tickets if a scalper is 1500 feet or closer to the entrance of a venue where a resold ticket can be used. The potentialspread of the virus led state governors to issue stay-at-home orders. Civil infraction, punishable by up to $1,000 in fines and license/permit revocation/suspension (where applicable). Aggrieved parties have the private right of action under the Consumer Protection Act to sue the offending party. Charged as a violation of the Oklahoma Consumer Protection Act, punishable by up to $10,000 per claim; may also be charged as a misdemeanor (up to $1,000 fine and/or 1 yr. in jail) or felony (up to $5,000 fine and/or up to 10 yrs. Again, it all depends on state law and the facts of an individuals ticket scalping case. Civil penalty of up to $5,000 per violation. *The governor of Maine has declared a state of emergency to help prevent the spread of COVID-19. Consequently, time spent in line is a commodity to those who can not, or will not . A further four leave it up to individual municipalities to decide. After a declared emergency, "selling or leasing fuel, food, medicine, or another necessity at an exorbitant or excessive price.". Ticket scalpers are motivated by different factors, including greed, the desire to prey on fans emotions, and a love of capitalism. *The governor issued an executive order due to the COVID-19 pandemic. In ticket scalping, these bots are used to automatically purchase large numbers of tickets from a number of different online retailers in a quick and efficient manner, amassing more than would feasibly be available to one individual customer. We've helped more than 6 million clients find the right lawyer for free. In Wisconsin, the state law provides that a ticket cannot be sold for more than the original price of the ticket. I could not get through and now they are charging more than double the fee. According to the National Conference of State Legislatures, during a state of emergency, 14 states let the market police itself. Approximately 16 of the 50 states have a law that makes scalping illegal. These ticket scalpers use various methods to achieve their end, and the practice in general is often seen as being unfair and damaging to the live event industry, due to the fact that the practices involved reprieve people from seeing shows. Event tickets, GPUs, CPUs, trainers and many more. Raising Prices During a State of Emergency: What's Legal? - Family Handyman Seven states Alabama, Georgia, Illinois, Massachusetts, New Jersey, New York and Pennsylvania require a special license to resell tickets. Copyright 2023 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. The gaming community specifically is dealing with this problem. This is caused by a number of factors. Here is the thing, once you purchase something, its yours, and if you want to sell it for a profit, that's your decision, but if it doesn't sell before the event, you lost money. The practice attracts profiteers when theres something of value in limited supply. Let's get to 5,000! Are there laws about reselling tickets or inflating prices for events Still, if the event you want to attend has been sold out, it can be tempting to look for alternative ways to buy tickets. *The governor has issued a state of emergencyprohibiting any increase in the selling price of any commodity during the time the state of emergency is in force. Is Scalping Illegal In Canada? Exploring The Legality Penalties The responsibility for regulating excessive price increases falls to the individual states. Tickets are limited, so snatching up tickets in essence limiting availability to others is criminal. We are no longer supporting IE (Internet Explorer) as we strive to provide site experiences for browsers that support new web standards and security practices. Prior to joining LegalMatch, Jaclyn was a paralegal and freelance writer. They loaded up on nonperishable food, meat and toilet paper, as well as cleaning, sanitizing and personal protection products. from Fordham University, majoring in both Journalism and the Classics (Latin). In addition to state laws, other laws make scalping illegal in raceways and the NFL. Is Scalping Illegal? - The Law Mother | Last updated March 24, 2020, When disaster strikes, whether it's a Category 5 hurricane, a pandemic, or an uncontrollable wildfire, consumers are often left scrambling for basic necessities such as drinking water and medical supplies. Despite the law surrounding ticket scalping being a complex gray area, the act is widely considered to be immoral and unethical by both performers, venue owners, and customers alike. When emergencies strike, essential items such as food, water, and fuel are often difficult to come by -- but they can be out of reach for many when prices are hiked beyond a reasonable level. In the United Kingdom, ticket scalping is technically legal, except at soccer matches, where it is against the law. Make sure to do your own research or contact a local attorney if you have additional questions about a particular state law. Most states base their response on laws that govern unfair or deceptive trade practices. The unfair part of scalping is when scalpers buy up a large amount of tickets, making it impossible for enough customers to buy the tickets they want at the affordable price. It expires on December 31 of each year, unless renewed. *The Attorney General has issued a consumer advisory warning regarding price gouging following the COVID-19 pandemic, indicating that price gouging is unconscionable and any price gouging resulting in illegal profit will be prosecuted. 0 have signed. Law, Government This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. If prices are 10 or 15 percent higher (some states have different thresholds), then it may be determined that price gouging has occurred. Over the past two decades, ticket scalping has become increasingly common due to the existence of the internet. Selling, or offering to sell, in this state at wholesale or at retail, consumer goods or services at unreasonably excessive prices after an emergency declaration (15% higher than the average price immediately prior to the declaration). There have been numerous times (this morning included) where I have been online with my finger on the refresh button two minutes prior to the official selling time. All rights reserved. Scalping does nothing to add value to a product, let alone modify it in any way so the only source for potential profit lies within the scalper's ability to purchase what they determine as being in demand and profits only exists when they are able to take advantage of the conditioned behavior consumers will experience as a result of their psychological need to have something sooner than later or what they couldn't or weren't able to be present physically at the time the original products were sold. If gone unchecked (like it has been) all products distributed online are vulnerable to attack and prices skyrocketing due to mass buyouts of all products through automation.