New state legislation proposes cap on concert ticket resale prices

California lawmakers are considering a measure aimed at curbing soaring ticket prices for live events. Assembly Bill 1720, dubbed the “California Fans First Act,” proposes to limit the resale price of concert, comedy, and theatrical tickets to no more than 10% above their original face value.

A Broken System?

Assemblymember Matt Haney, who introduced the bill, argues the current ticket market disadvantages fans. He points to the prevalence of automated buying systems – often referred to as “bots” – that scoop up tickets, driving up prices and leaving many unable to attend events. Haney stated, “For anyone who’s gone to a concert, they know that the system is fundamentally broken.”

Did You Know? Maine and Washington, D.C. Already have laws in place capping resale markups at 10% or less.

The frustration with the current system was highlighted by music fan Marlee Wallace, who attempted to purchase tickets for a Megan Moroney concert. She faced competition from an estimated 130,000 other people – and automated bots – for a venue with only 17,000 seats. Wallace discovered remaining tickets were significantly inflated, and later appeared on the resale market at up to eight times their original cost.

The Impact on Artists and Venues

Haney contends that ticket speculation harms not only fans but also the artists and venues themselves. He characterized ticket brokers and speculators as “parasitic intermediaries” who profit from events without contributing to their production. He believes they are “killing the music industry, it’s killing live events” by prioritizing profit over access.

Expert Insight: Limiting resale prices represents a significant intervention in the market, potentially shifting revenue streams away from secondary marketplaces and back towards primary ticket sellers and, ideally, artists. The effectiveness of such legislation often hinges on enforcement and the ability to prevent circumvention.

The proposed legislation does not apply to sporting events. Specific penalties for violations of the bill remain under finalization, but Haney emphasized the urgency of addressing the issue. He stated, “There are a lot of folks out there who make a lot of money by skimming off the top of your hard-earned dollars when you just want to go to a show and see a musician you love.”

Frequently Asked Questions

What types of events would be covered by AB 1720?

The legislation applies to concerts, comedy shows, and theatrical productions, but specifically excludes sporting events.

What is the proposed limit on resale prices?

AB 1720 would limit the resale price of tickets to no more than 10% above the original face value.

Has any other jurisdiction implemented similar rules?

Maine and Washington, D.C. Already have laws capping resale markups at no more than 10%. The United Kingdom recently passed legislation limiting resale prices to the original ticket cost plus any ticket fees.

If passed, AB 1720 could reshape the landscape of ticket purchasing in California. It remains to be seen whether the bill will pass and, if so, how effectively it will address the concerns of fans, artists, and venues. A possible next step would be further debate and refinement of the bill’s language, followed by a vote in the California legislature. Analysts expect continued discussion regarding enforcement mechanisms and potential loopholes.

How do you think regulating ticket resale prices might impact the live event experience for both attendees and performers?