California Passes Ghost Ticket Restriction Legislation

California has become the latest state to enact legislation related to the ticket resale market. This past Sunday (September 27), Governor Gavin Newsom signed Assembly Bill 1349, which bars ticket resellers from advertising, listing, or selling “ghost tickets,” which are tickets they don’t have in their possession at the time of sale.

How it works:

• The law bans software that can subvert ticket limits and bypass queues.

• The law also bans deceptive websites and ads that make resellers look like authorized marketplaces.

• Violating the law can result in misdemeanor charges.

Background:

• The law faced last-minute changes frowned upon by the National Independent Venue Association (NIVA).

• Updates included exempting sports teams and venues that manage their own tickets from the law.

• Resale marketplaces are also now excluded from the definition of a speculative ticket seller.

• NIVA claimed that the law now protected larger resellers such as StubHub.

What they said:

• Newsom: “While there may be good reasons for exempting certain sellers from the bill’s provisions, such a carve-out deserves further discussion.”

• Stephen Parker, Executive Director of NIVA: “[AB 1349] puts the small businesses and nonprofits that put on shows every night at risk. And, it endangers fans’ economic well-being.”

• Brian Berry, Executive Director of Ticket Policy Forum, which represents StubHub and other resellers: “AB 1349 bans the sale of speculative tickets, including on resale marketplaces. Any other interpretation is clearly divorced from the text of the law and from reality. Our members will of course comply with the speculative ticketing ban and the many other new requirements that come with this new law.”