Maryland Proposes Legislation to Cap Concert Ticket Resales
In a bold move to regulate the ticket resale market, Maryland lawmakers have introduced legislation aimed at putting a lid on exorbitant ticket prices and curbing deceptive practices. This initiative, led by State Sen. Dawn Gile, seeks to protect consumers from the predatory tactics often employed by ticket brokers.
The legislative proposal specifically targets the secondary ticket market, where tickets are resold, often at drastically increased prices, by entities other than the original issuers. Acknowledging the difference between individual resellers making a profit and brokers buying out large quantities to resell at inflated prices, Gile emphasized, "It’s not a free market. It doesn’t benefit the venue, it doesn’t benefit the artist, it doesn’t benefit the consumer."
The bill has sparked a conversation around the practices of ticket resale companies such as StubHub, Ticket Network, and Vivid Seat. Representatives from these companies have expressed concerns about the proposal, particularly about the introduction of price caps on resale tickets. Tyler St. Clair, from Vivid Seats, highlighted potential unintended consequences of dynamic pricing caps. Meanwhile, Kevin Callahan of StubHub stressed the importance of allowing users to buy and sell tickets at prices they deem appropriate, fearing that price caps could push transactions to less secure platforms.
However, the state's move has been largely influenced by consumer outcry and antitrust concerns following incidents with Ticketmaster and highly sought-after concerts, illustrating the broader need for regulation within the ticket selling industry. The proposed legislation aims to introduce all-in pricing, requiring ticket sellers to disclose the full cost upfront, and set a 10% cap on fees charged by resale sites like StubHub, SeatGeek, and Vivid Seats.
Another significant aspect of the bill is the ban on speculative ticket sales, a practice where brokers sell tickets they do not yet own. This practice has led to inflated prices and misleading perceptions of event sellouts, further disadvantaging consumers.
Despite some opposition, including from Senate Minority Leader Steve Hershey who views the proposal as potentially overprotective, there is strong support for the legislation from concert venues, artists' groups, and consumer protection advocates. They argue that previous measures to regulate ticket scalping and price gouging have fallen short, and that Gile's proposal offers a concrete solution to protect consumers and local events from exploitation.
As the issue continues to evolve, the outcome of Maryland's proposal could set a precedent for how other states approach the regulation of the ticket resale market. With increasing attention on consumer protection and fair market practices, this legislation represents a significant step towards curbing the negative impacts of ticket resale on consumers and the live event industry alike.
Analyst comment
Positive news. The market for concert ticket resales will likely face regulation in Maryland, with the introduction of legislation to cap prices and curb deceptive practices. This move aims to protect consumers from predatory tactics and create a fairer market. While there is opposition from ticket resale companies, there is strong support from concert venues, artists’ groups, and consumer advocates. If successful, this legislation could set a precedent for other states and contribute to better consumer protection and fair market practices.
