Not only can scalpers set the price however they want, but it may be difficult to determine whether the tickets are real and not counterfeit. This is because they are a captive audience of sorts, and the short notice of the event adds pressure on people to pay over the odds. Scalping tickets is the practice of mass buying and reselling of tickets by an individual who is not associated with the organization that is sponsoring the event. I'm wondering where this fits in this argument of ticket brokering being legal/illegal, etc. after a declared state of emergency at "unconscionable" prices("grossly exceeding" average prices in the 30-day period preceding the emergency). @ FrameMaker- I am with you, I think that the only ones really complaining about scalpers are the sports teams who wish that they were making more money. Event tickets, GPUs, CPUs, trainers and many more. People who attend concerts or sporting events are usually emotionally invested in that event, and resellers take advantage of those feelings. Already considered a struggling industry in many parts of the world, live events venues are some of the loudest opponents to ticket scalping, as this can actively damage how many people can attend their shows. In some states, scalping is outright illegal, while in other states, scalping is legal under certain circumstances. Once the tickets have been acquired, they can then be sold for an inflated price, either through online outlets, or in person. You can also face criminal consequences if you are a scalper who resells fraudulent tickets as well. Thin one- or two-ply toilet paper is sold commercially in huge, wide rolls. 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). Use some foresight! States that restrict scalping include: Arizona, Arkansas, California, Connecticut, Delaware, Kentucky, Louisiana, Michigan, Mississippi, Missouri, New Mexico, Ohio, Rhode Island, and Wisconsin." There are another seven states that "require a seller to have license to broker tickets, and many limit the allowable markup to $3 or less." *Idaho declared a state of emergency in response to COVID-19, which activates the above provisions. Up to $25,000 civil penalty per violation, restitution. Answer (1 of 2): In most states scalping is not illegal. For instance, if an event is a popular event, a line of individuals will inevitably form. When it comes to ticket scalping and the law, there are many differences depending on country or origin, the type of event, and the venues in question. A ticket's service fee cannot be more than $3, unless . Click here. Scalping is the act of cutting or tearing a part of the human scalp, with hair attached, from the head, and generally occurred in warfare with the scalp being a trophy. The resale price will then be raised exponentially, with the scalper charging those seeking tickets far more than they would have paid through registered outlets. Someone's got a product to sell, someone else is looking for that product. Approximately 16 of the 50 states have a law that makes scalping illegal. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. There are 16 states in the United States where there are restrictions on ticket sales above face-value, namely: Arkansas - Ark. Law, Intellectual "Charging the consumer a price that is grossly in excess of the price at which similar property or services are sold" -- regardless of whether there is a declared emergency. Make Scalping Illegal Across The US. Retail scalping, or buying needed products for resale at a higher price, is unethical. However, many states have their own scalping laws on the books, which vary from place to place. The order prohibits "selling, offering to sell, or causing to sell in the state any essential consumer goods or services for an amount that represents an unconscionably excessive price.". Ticket scalpers are motivated by different factors, including greed, the desire to prey on fans emotions, and a love of capitalism. While it may at first seem like the shift from purchasing physical tickets for events to buying digital versions would have dissuaded scalpers, the problem has only continued to get worse with technological advancements. The resale of tickets is only permitted if an entertainment site or venue has provided an express authorization. *New York has declared a state of emergency due to the COVID-19 pandemic. Penal Code 346 Connecticut - CGS 53-289 Florida - Fla. Stat. It actually helped me realize something, which would likely be seen as a secondary argument in favor of deeming it illegal: although it operates on foundational principles rooted in capitalism and all is fair in love and war. Negotiation is an art, patience is a virtue. Published Nov 30, 2021. If prices are 10 or 15 percent higher (some states have different thresholds), then it may be determined that price gouging has occurred. It is illegal to misrepresent the price of goods or take advantage of consumers to a grossly unfair degree. Penalties range from $99 - $1,000 and/or up-to one year in jail per offense. Scalpers also run the risk of not selling all of their tickets as well. SC Statehouse: Title 39 - Trade and Commerce Chapter 5 Unfair Trade Practices Article 1 General Provisions. (this may not be the same place you live), Faulty/Defective Products/Services (Auto, Drug), Investments (Annuities, Securities, IPOs), Online Law The practice attracts profiteers when there's something of value in limited supply. Did Scalping bots, computer programs specially designed to purchase and resale items at inflated prices, have become common for tickets as well as other items sold online. *Kansas declared a state of emergency in response to COVID-19 pandemic, prohibiting any supplier from "profiteering from a disaster". In South Carolina, an individual or business who knowingly purchases tickets exceeding the maximum quantity a ticket seller allows at the original sale point or that is printed on the tickets, intending to resell them in excess of more than one dollar above their value is in violation of the states Unfair Trade Practices Act. Approximately 16 of the 50 states have a law that makes scalping illegal. Your lawyer will also be able to explain how the laws may affect the outcome of your case and can discuss the potential penalties you may receive if you are convicted of the act. *New Jersey has declared a state of emergency in response to COVID-19, activating the provisions above. We recommend our users to update the browser. Persons who are caught doing so can face considerable legal penalties. However, some cities, like Houston and Arlington, have ordinances restricting scalping. I paid about 2000 for two season tickets, but ended up seeing most of the games for much cheaper. LegalMatch, Market We and our partners use cookies to Store and/or access information on a device. In most states, price gouging during a time of emergency is considered a violation of unfair or deceptive trade practices law. . But I just got a flyer in the mail about a show I had no idea about. This is especially true in cases where a person is facing charges and possibly a prison sentence for illegally scalping tickets in a particular state. Scalpers are not guaranteed a return on their investment, even as far as having to sell them for less than face value. in Communications and English from Niagara University. Meeting with a lawyer can help you understand your options and how to best protect your rights. 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. The venue will pay a fee of $125 for the initial notice and $25 for each renewal. in prison. A person who knowingly distributes, gives, possesses, sells, transfers or uses software designed or created to interfere with an online seller who sells theater, concert, sports tickets or tickets for any kind of public entertainment by circumventing security or access control measures on the ticket seller's site is in violation of state law. But in those places where it is illegal, the problem is normally that scalpers move in and artificially deplete the supply of tickets on day-one, then mark up the price of the tickets sufficiently that they recoup their money, even if they don't actu. Law, Employment 16 people have successfully posted their cases, 5 people have successfully posted their cases, 10 people have successfully posted their cases, 6 people have successfully posted their cases, 20 people have successfully posted their cases, 7 people have successfully posted their cases, 9 people have successfully posted their cases, Can't find your category? During a declared emergency, selling goods and services at a price that is at least 10% higher than it was immediately preceding the declaration. Civil penalty of up $10,000 per violation, plus legal costs; criminal penalties ranging from a misdemeanor (up to $1,000 and 6 months in jail) to a felony (1 to 5 yrs. Seven states Alabama, Georgia, Illinois, Massachusetts, New Jersey, New York and Pennsylvania require a special license to resell tickets. Its time to make a stand against the practice and officially outlaw scalping in the United States. It prohibits price increases of more than 10%. Law, Insurance A couple of days later, I sell the same tickets for $150 on StubHub. . FrameMaker, nicely said. You can learn more about Jaclyn here. Stat. They want your money, you want their ticket; open market regulates the price based on supply/demand. Just make it illegal to sell more than 5-10% over MSRP with taking taxes into consideration, unless a product is discontinued or a rarity of some kind. Or would this viewed as nothing more than buying and selling to demand like stocks or collectible commodities? Brad Parks Until a few years ago, what Barbara Anderson did in the privacy of her Hackettstown home Monday night was considered illegal in more than 20 states. I agree it is not fair. I do the same thing with my Red Sox season tickets. Law Practice, Attorney $1,000 civil penalty per violation, injunctive relief, restitution; may be charged as a Class D felony (1-7 yrs. Subscribe to our newsletter and learn something new every day. 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. 60 countries, states and territories have deemed corporal punishment illegaldo you think the U.S. should follow suit? 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. Visit our attorney directory to find a lawyer near you who can help. This is why scalping often occurs in close proximity to events, such as concerts or baseball games, but not within the grounds or stadium. Therefore, cops are often hesitant to get involved. At FindLaw.com, we pride ourselves on being the number one source of free legal information and resources on the web. Therefore, if you have been accused of the act of illegal ticket scalping, then it may be in your best interest to consult with a local criminal defense lawyer as soon as possible. This depends on private contracts with the specific teams, who can form business partnerships with legitimate second hand ticket selling marketplaces. after a declared state of emergency for more than 10% over the price at which similar services/products were sold during the 90-day period preceding the emergency. Individuals can resell tickets via the internet at greater than face value if the: An event venue may prohibit the resale of tickets at a price greater than face value. Party reselling a ticket online offers it with a guarantee that meets certain requirements, and the prospective purchaser is directed to that guarantee before purchase. Selling "essential commodities" (i.e. Home Topics Cleaning Cleaning Products. And when do sudden, large increases become illegal? after a declared state of emergency for more than 10% over the cost of these items immediately preceding the declaration. Property Law, Personal Injury She went on a Web site called. In many cases though, there are very limited restrictions on when and how they can sell, and scalpers can post ads through newspapers and ticket broker websites to sell their wares. In addition to state laws, other laws make scalping illegal in raceways and the NFL. It has come to the attention of the gaming community that the morally bankrupt practice of scalping has at quite possibly the worst time in history for such an act to happen, destroyed the launch of the most recent major company's products in entertainment. Punishable by a civil penalty of up to $2,500 per violation (up to $5,000 if in violation of an injunction). They get together, negotiate a deal, and everyone walks away with what they want. Aside from this, the process is also seen as unsavory by many, seeing it as a nasty element to something that should otherwise be a fun time for those in attendance. My Law Questions: Is Scalping Tickets Illegal? Generally speaking, however, states that do consider ticket scalping to be illegal will issue fines for up to $1,000 and/or a jail sentence for no longer than one year if the scalper is a first-time offender. Why should I have to pay a higher price than the next person because someone else was greedy? When scalpers buy large quantities of tickets, they take the risk of failing to resell all of them, losing money. As discussed above, the legal consequences that one may face if they are caught illegally scalping tickets can vary widely from state to state. There is no substitute for competent legal counsel. 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 . Raising prices excessively during an extreme shortage, commonly referred to as price gouging, takes the law of supply and demand to the extreme. There are exceptions to this law. Again, it all depends on state law and the facts of an individuals ticket scalping case. Thus, whether or not scalping a person will face penalties for illegally reselling or scalping tickets will largely depend on state laws. & Is electronic scalping illegal? 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. What we (the fans, the venue, and the ticketing agency) want. This fee can be an amount that has been pre-established per ticket or a percentage of that ticket. I can barely stand paying ticketmaster, so I am definitely not going to pay some stranger more than the actual artist who created the music I want to hear live! In addition, some state laws require that a scalper register with their state as a ticket broker and pay a registration fee. This often involves the use of bots, essentially internet software programs which conduct automated processes over the internet. While some states might differ, most prohibit resale of tickets at the venue, including the associated land like parking lots and waiting areas. In addition to ticket scalping, there is another common form of this practice called retail scalping. Discovery activities are placed on hold from the time the motion is filed until the court has ruled on it, although the judge may permit . Just the other side of the coin. And some manufacturers may turn to a new product altogether, like distilleries using their ethyl alcohol to produce hand sanitizer. During a time of disaster, selling, leasing, or licensing "any necessary goods and services at an unconscionable price.". Scalpers will often state that they will buy and sell tickets for the show in question, and will walk up and down the line outside the venue, touting their services to those waiting. Many people also feel threatened by physical resellers, and dislike their presence outside shows and venues. They state that it creates a fair, open market that both parties are agreeable toward. An hour later, the event was declared sold out. Real fans follow their teams or favorite artists, and know when the tickets go on sale. Note: State laws are always subject to change. for violations resulting in death). The state of Alabama has an interesting twist in its scalping law. These bots in themselves are not necessarily unlawful, although many of the ways in which they are used are considered immoral, unethical, and sometimes illegal.
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