Re-selling tix: What is the law?

[gymdudeva]

Posted: 6/5/07 at 2:48pm

I thought that it was totally illegal to re-sell tickets for more than face value. But then I see tix on ebay for way more than that. There is a disclaimer at the bottom of the ebay listings about the maximum that can be bid by New York residents. Does the law apply only in the state of purchase?

I am asking because I have some hard-to-get seats for a very popular show, that I may not want to use...

[folkyboy]

Posted: 6/5/07 at 2:53pm

i don't think it's illegal. if i bought a ticket and wanted to sell it for $5 billion dollars and some dummy is willing pay that to see someone imitate a boy band from the 50s then they it should be my right to sell them.

not that i ever have done it but i'm saying...
Updated On: 6/5/07 at 02:53 PM

[Anakela]

Posted: 6/5/07 at 2:59pm

Scalping laws vary by state- the seller is bound by the laws of his/her state, the buyer is bound by the laws of his/her state. You can look up the rules by state, by buyer/seller, on eBay:
http://pages.ebay.com/buyselltickets/rules.html


(I think NY's scalping law ended last Friday? Or is about to end this Friday or something? It's been all over the news recently about how it is expiring soon.)

[unckristen]

Posted: 6/5/07 at 3:04pm

Yes, the scalping laws vary by state and the applicable law is where the transaction takes place. Since many of these transactions take place by ebay (for example), then you start looking at the locations of the buyer, the seller and the tickets. One way some people use to try to get around these laws (again, especially on ebay) is to sell something else along with the ticket -- i.e., sell the ticket and a copy of the relevant cd. So, the portion of the price allocable to the ticket stays within the scalping laws and the portion of the price allocable to the other thing is what bidding goes crazy on.

[gymdudeva]

Posted: 6/5/07 at 3:06pm

Thanks! I looked all over ebay but could not find a page like that!

(Woo Hoo, I may be able to get well above my purchase price for these tix!!)

I found this article about the NY law:
LINK

[madbrian]

Posted: 6/5/07 at 3:10pm

NY recently allowed its scalping laws to expire. So, there is no longer a limit on the increase over face value. However, there are still restrictions about selling within a distance of the venue, and brokers still need to register.

[p.s.]

Posted: 6/5/07 at 3:13pm

(Woo Hoo, I may be able to get well above my purchase price for these tix!!)

I'll give you five.



p.s. No more than five!

[gymdudeva]

Posted: 6/5/07 at 3:16pm

Is that five OVER the regular price, or five dollars TOTAL?

You don't even know what show it is LOL.

[p.s.]

Posted: 6/5/07 at 3:19pm

You don't even know what show it is LOL.

You don't even know what show it is.


p.s. LOL

[Anakela]

Posted: 6/5/07 at 3:23pm

p.s. No more than five!

...my dear, we all must stay alive!

[Fosse76]

Posted: 6/5/07 at 3:34pm

"i don't think it's illegal. if i bought a ticket and wanted to sell it for $5 billion dollars and some dummy is willing pay that to see someone imitate a boy band from the 50s then they it should be my right to sell them."

Nope. You do not have any right to sell anything for whatever anyone is willing to pay. Strictly speaking, the U.S. Constitution delegates the regulation of business and commerce to the states (implicitly and literally). The U.S. is a free market by tradition, but not by constitutionality. This is why you will see regulation of certain industries in some states but not others. I believe it is Rhode Island or Delaware that has capped the costs of prescription medecines (though I think iot is being held-up). Up until this year, Hawaii had a law that required gas stations to only charge the per-gallon national average of gas. This is also why you will see variations in the minimum wage laws, and why states have higher minimum wage laws than the Federal minimum. If the State of New York decided that the maximum cost of a Broadway theatre ticket should be $45.00, then Broadway producers would not legally be able to charge more than $45.00.

That said, re-sale laws (i.e., scalping) would therefore also vary state by state. In that case, the state with the more restrictive law would have jurisdiction over the sale under the concept of minimum contacts. This is when a person or business has enough contact (either business or personal) in the state that the state can exert jurisdiction over them for that specific transaction. Each state has its own standards of what is considered minimum contacts. But generally ANY type of transaction (and yes, it includes ebay) can give a state jurisdiction. So if I live in Maine and buy a ticket from someone in Idaho, I have conducted business in Idaho, despite never having set foot there. So if any legal action occurs in the case, then both states can exert jurisdiction over the transaction.

So to answer the original poster's question, if you live in New York, then you must follow New York law. The reason you see those notices on ebay is because if the bid exceeds the maximimum amount set under New York Law, then the seller would be in violation of the law if he sold them to you. So in order to prevent that from occuring, the seller puts the notice on ebay to prevent a New York resident (or someone currently in New York) from purchasing the ticket.

[winston89]

Posted: 6/5/07 at 4:39pm

I know that with the old scalping law you could only sell it for no more the face value within a 500 yard ratius from the venue. Many years ago people would scalp tickets at penn station which is the basement of Madison Square Garden. The cops caught on to this and put a stop to it very quickly.