PUTTING CONSUMER
PROTECTIONS BACK INTO TICKET RESALE
By state Senator Connie
Williams
Think back to the
last time that you decided to purchase a ticket to a concert or a game.
Did you stand in a long line for hours camp out overnight or spend
hours hitting redial on your telephone? Or, did you decide the event was
worth it and spend five, six, eight or even ten times the face value and
shop online? Maybe you waited until the day of the event and very
discreetly visited a scalper outside of the event, hoping that you
wouldn't be caught.
Earlier this
year, a majority of the state Senate voted in favor of legislation that
will make it even more difficult to obtain tickets at face value,
although the legislation was billed as "adding consumer protections" to
ticket resale. What the legislation would do according to its
proponents is to provide a "legitimate" way for fans to buy and sell
tickets online in a "safe and trusted" manner by requiring a company
brokering the sales to guarantee a full refund if: the ticketed event is
canceled; the ticket is not valid for entry at the event; or the ticket
is incorrectly described at the point of purchase.
Proponents of the
bill (SB 86) argue that online ticket resale has rendered the current
law (which places a 25 percent cap on how much a ticket can be resold
above its face value) ineffective. Further, they argue that millions of
dollars worth of Pennsylvania tickets are currently being resold on the
Internet well in excess of the cap and with virtually no law
enforcement.
I voted against
the legislation because I don't believe that it is truly offering
consumer protections. Rather it is creating an underground economy where
online ticket resellers can sell tickets at whatever prices people are
willing to pay and generally do so without reporting income from their
"industry."
What this
legislation would do is to remove the cap only on those tickets that are
sold online and not on the tickets sold by ticket brokers who may have a
small storefront in the city. The legislation would not legitimize
scalping -- ticket resale outside of a venue. Scalping is still illegal
in Pennsylvania.
What this
legislation would do is to legitimize one form of ticket resale online
resale by allowing profits to be made from commissions, fees and
exorbitant increases above the face value of tickets.
Tickets for
popular concerts and high-profile sport events are sold-out quickly
sometimes in less than an hour. No one is so naοve to believe that every
single ticket was purchased by people who planned to attend the event.
This market for ticket resale is placing many events out of the reach of
many working families.
Sure ticket
resale is happening and yes people are finding ways to get around the 25
percent cap on the price, but calling the cap outdated only as it
relates to online sales hardly seems like the way to respond to attempts
to skirt Pennsylvania law.
This is an issue
of fairness. Whether tickets to events are considered a luxury or not,
everyone should be on a level playing field when it comes to having the
opportunity to purchase the tickets at face value. And, if the public
supports the idea that ticket resale should be subject to the free
market system, shouldn't everyone who is involved in ticket resale also
have the same opportunities as the online sellers?
The legislation
has passed the Senate and is now before the House, I encourage you to
write to your state Representative about this bill. Ask him or her to
vote against the bill, or to significantly amend the bill with more
consumer protections, such as notices on all online resale sites that
inform customers that they are not the official ticket outlet for an
event or that tickets may be priced above face value. |