Secondary Ticketing Platforms Sue to Block DC Resale Price Cap

The Ticket Policy Forum (TPF), whose members include secondary ticket marketplaces SeatGeek, Vivid Seats, Gametime and TickPick, has filed a lawsuit seeking to block the District of Columbia’s RESALE Act.

Backstory:

• The RESALE (Restricting Egregious Scalping Against Live Entertainment) Act was introduced and sponsored by DC Councilmember Charles Allen, and is scheduled to go into effect on January 1, 2027.

• The legislation caps the resale price for concert, theater, comedy and other live event tickets at 10% above the original price paid, including fees and taxes.

• Secondary marketplaces can charge an additional service fee of up to 10% of that same original price.

• The legislation also requires all-in pricing, and bans speculative ticketing and surveillance pricing.

The claims:

• The TPF filed the lawsuit in the US District Court for the District of Columbia.

• The companies are seeking a preliminary injunction, alleging that the law violates the dormant Commerce Clause, the Due Process Clause, the First Amendment, and the Home Rule Act.

• The lawsuit argues that the Act improperly regulates ticket sales taking place outside DC, including transactions involving buyers, sellers, and marketplaces located in other states.

• The plaintiffs also argue that resale marketplaces often cannot verify a ticket’s original purchase price, making compliance with the resale price cap and original-price disclosure requirements difficult.

• The lawsuit alleges that requiring marketplaces to disclose original ticket prices they cannot independently verify violates the First Amendment.

• The TPF argues that the restrictions could push ticket sales into less secure channels, increasing the risk of fraud and scams for consumers.

What they said:

• DC Councilmember Charles Allen: “I introduced this law because companies like the ones behind this lawsuit are gouging DC residents using technology to scoop up as many live music tickets as they can and resell them at inflated prices – a scam that’s been extremely lucrative for them for years. Under my bill, that show is over. However, it’s not surprising to see them try for an encore to preserve these enormous profits and the status quo. I think their time would be better spent preparing for January 1 when music fans will finally catch a break on the outrageous price mark-ups.”