Untitled255

History of New York's Ticket "Scalping" Law - by Tania Dissanayake

By td4200
  • L.1920 (Ch. 912)*

    Regulation of Boxing and Wrestling Matches
    -Creates Boxing and Wrestling Commission
    -No ticket regulation
  • L.1922 (Ch. 590)

    Regulation of Theatre Tickets (Art. 10-B GBSL)
    -Progenitor of New York ticket resale/"anti-scalping" laws
    -Applied to theaters, and places of entertainment, amusement, exhibition, games, contests, or performances
    -Licensure by Comptroller
    -Print established/original price on ticket
    -Maximum premium/resale price: $0.50
    -Bond requirement: $1,000
    -Bond imposed obligator responsibility not to commit fraud or exact ice/excess charges
    -Severability
  • L.1923 (Ch. 699)*

    Regulation of Boxing and Wrestling (L.1920) Tickets*
    -Added boxing ticket regulations, purchase price and max price
    *These provisions are independent from the theater/entertainment resale ticket provisions until 1991. Only significant as its extension is tied that year to the extension of the overall theater/entertainment ticket resale law.
  • L.1925 (Ch. 379)

    -Required posting of max price law
  • Case: Weller v. New York

    Case: Weller v. New York
    SCOTUS affirmed that the State could impose licensure requirements on ticket reselling; any challenge to its other anti-scalping provisions were considered severable from its license requirements
  • Case: Tyson & Brother v. Banton

    Case: Tyson & Brother v. Banton
    SCOTUS struck down New York's max price provision. The Court determined that the State's police power to regulate conduct of a business or restrict dealings in private property existed only where the business or property involved has become 'affected with public interest'. Ticket reselling was determined not to be, therefore preventing the State from fixing a max price for ticket resale. Importantly, Justices in dissent left open State action wherever not expressly constitutionally prohibited.
  • L.1928 (Ch. 600)

    -Removed Comptroller authority & grant to Dept. of State
    -Increased license fee to $200 from $100
    -Added a certificate for branch offices with a new fee of $50 for each
    -Added requirement that place of business be exclusively for ticket sale purposes only
    -Added notice to DOS of office removal
    -Added explicit ice/bribe payment ban
    -Eliminated max price, but retained print of established price on ticket
    -Added license/cert. posting
    -Expanded broker price posting to established price list
    -Records
  • Case: Nebbia v. New York

    Case: Nebbia v. New York
    SCOTUS held that the State may enact economic policy in furtherance of a public good (ex: restrict milk price). "The Constitution does not guarantee the unrestricted privilege to engage in a business or to conduct it as one pleases. Certain kinds of business may be prohibited; and the right to conduct a business...may be conditioned...Statutes prescribing the terms upon which those conducting certain businesses may contract, or imposing terms...are within the state's competency."
  • L.1937 (Ch. 699)

    -Ticket sale office/branch office approval by Dept. of State
    -No certificate changes/transfer for branches without DOS approval
    -$10 fee for changes
  • L.1940 (Ch. 614)

    -Reasserted ticket sale regulation as an affected public interest against fraud & extortion
    -Removed Dept. of State authority & granted to political subdivisions (localities); gave power to promulgate regs
    -Compel owners/operators to comply with info requests
    -Restored and increased max price ($0.75+tax from $0.50)
    -Enhanced & further prescribed bond requirements as result of damages/violations
    -Reduced response to license revocation/suspension (5 days from 10)
    -Added penalty $250, 1 yr or both
  • Case: Kelly-Sullivan v. Moss (NYC DCA)

    Case: Kelly-Sullivan v. Moss (NYC DCA)
    Guided by a more expansive posture toward state legislative power affirmed in Nebbia v. New York and the rational basis test, the S. Ct. Appellate Div. (1d) upholds the State's ability to regulate ticket reselling, impose a max price ($0.75), and treat industry actors (operators & brokers) differently. Guarding the public from fraud and abuse was the rational basis. The Court further ruled there is no violation of Home Rule --despite most activity being in NYC--because the law applies statewide.
  • L.1951 (Ch. 94)

    -Increased max price ($1.00 from $0.75)
  • L.1957 (Ch. 648)

    -Increased max price ($1.25 from $1.00)
  • L.1960 (Ch. 902)

    -Increased max price ($1.50 from $1.25)
  • Case: Gold v. DiCarlo

    Case: Gold v. DiCarlo
    SCOTUS again upheld the state's ticket scalping law, its treatment of industry actors, and max price provision ($2.00) in the face of a challenge by ticket brokers relying on Tyson not being formally overruled. In its ruling, the lower court affirmed had argued the Tyson test of ''affected with public interest' was discarded in Nebbia and Tyson was no longer binding. Highlighted the existence of ice/bribery abuses.
  • L.1965 (Ch. 325 & 1031)

    Ch. 325:
    As a result of AG report:
    -New theater financing (Art. 26-A GBSL)
    -Registration of all theater ticket financing distributors
    -Empowered AG to suspend violators and require record keeping.
    Ch. 1031:
    -Added Anti-ice/bribe receipt ban; prohibits "unlawful charges" accepted by operators
    -AG's/local D.A's concurrent enforcement authority
    -Ticket speculator/solicitation prohibition
  • L.1972 (Ch.710)

    -Added Nassau County to the ticket speculator ban
  • L.1974 (Ch. 894)

    Moved ticket scalping law (Art. 10-C of GBSL)
  • L.1975 (Ch. 451 & 452)

    -Adds personal use exemption for ticket transfer
    -Clarifies personal use exemption allows resale above established price, but below max price.
  • L.1976 (Ch. 958)

    -Increased max price ($2.00 from $1.50)
  • L.1977 (Ch. 126)

    At request of NYC
    -Repeals requirement that offices/branch offices be exclusively for ticket sale purposes only
    -NYC argued the requirement served no substantial public interest and was both an archaic and unnecessary restriction
  • L.1981 (Ch. 828)

    -Added penalty structure for repeat violators ($250 and/or 1 year imprisonment to $250 first offence, $500 second offence, and $1000 for subsequent offences and/or 1 year imprisonment)
    -However first time offenders selling less than 6 tickets were to be fined $100 for violation.
  • L.1981 (Ch.603)*

    Retitles the Boxing and Wrestling Commission (L.1920) as the State Athletic Commission
  • L.1982 (Ch. 209)

    -Added sporting events to application of Theatre ticket law (Art. 10-C GBSL)
  • L.1983 (Ch. 876)

    -Consolidation of arts laws into the new Arts and Cultural Affairs law
    -Repealed existing ticket law and reconstituted as Regulation of Sale of Theatre Tickets (Art. 25 of ACAL)
  • L.1991 (Ch. 704)

    Tickets to Places of Entertainment (Art.25 ACAL)
    -Repealed 1983 Art.25
    -Defined terms; resale as sale other than operator
    -Increased max price ($5.00 or >10% whichever greater)
    -Apply to out of state resellers
    -Reassert personal use exemption (no profit)
    -Added buffer zone (1,000ft) outside large arenas (>5,000 seats) & such ticket notice
    -New penalty structure
    -Replace speculator ban (regular & aggravated >5 tkt)
    -Added private right of action
    -Controls 1920 Boxing* tickets
    -Sunset 12/31/94
  • L.1994 (Ch. 319)

    -6 month straight extender
    -Sunset 06/30/95
  • NJ Legislature Temporarily Eliminated Max Price

    NJ Temporarily eliminated max price
    1995-04/31/97
  • Case: People v. Concert Connection

    Case: People v. Concert Connection
    The S. Ct Appellate Div. (2d) affirmed that the ACA law applied to out of state or non-domicile actors doing business in New York (reselling tickets for events taking place in New York). The Court of Appeals dismissed appeal.
  • L.1995 (Ch.114)

    -9 month straight extender
    -Sunset 3/31/96
  • L.1996 (Ch. 28)

    -1 year, 3 month straight extender
    -Sunset 06/01/97
  • Sunset I (1997)

    Law sunset over a dispute whether to eliminate max prices or increase them
    -Reverted to 1983 Art. 25 ACAL
  • NJ Passed Permanent Max Price Elimination & Study

    NJ eliminated max prices in favor of "free market" pricing and created a commission to study the effects on 12/24/97
  • S.5686 1997 (Gov. Program 80) Not Passed

    Governor Pataki proposed:
    - Increase max price to 40% of established price from $5.00 or >10%, including other charges (service, delivery, etc.)
    -Create Task Force study
    -Remove local subdivision authority & grant to Dept of State except NYC. AG's/local D.A's retain enforcement authority
    -Reaffirm out of state actors appl.
    -Add disclosures to seat locations, added fees, and refunds
    -Increase buffer (1,500ft), bond for restitution, & criminal penalties
    -Dept of Tax reg
    -Serial # on tickets
  • L.1997 (Ch. 632) Special Session

    -1 year straight extender, retroactive to 06/01/97
    -Sunset 06/01/98
  • NJ Study: No Benefit to Max Price Elimination

    New Jersey study published, regarding max price elimination, stated "there is no persuasive evidence that suggests the so-called free market approach to ticket resales has lowered prices or made more tickets available to consumers...there is no compelling evidence that it has ensured equal access for New Jerseyans, nor that it has ensured tickets at lower prices." It did, however, recommended further evaluation.
  • L.1998 (Ch.73)

    -1 year straight extender
    -Cited NJ study release as a reason to extend without amendment, allowing NY time to review the findings
    -Sunset 06/01/98
  • NY AG Report: 'Why Can't I Get Tickets?'

    AG Report recommended:
    -Ice/excess charges be upgraded from misdemeanor to felony
    -Make it illegal for operators to divert tickets to ticket brokers even without proof of bribery
    - Make it a Class E felony to sell >20 tickets or tickets totaling >$1,000 over the statutory limit (similar to larceny when the value of stolen property >$1,000)
    -Raise max price for the benefit of law-abiding licensed brokers
    -Print serial# on tickets
    -Disclose # of tickets available for public sale (hold backs)
  • L.1999 (Ch. 60)

    -1 year straight extender
    -Sunset 06/01/00
  • L.2000 (Ch. 42)

    -1 year straight extender
    -Sunset 06/01/01
  • L.2001 (Ch. 48)

    -7 day straight extender
    -Sunset 06/08/01
  • L.2001 (Ch. 56)

    -Extended for 2 years
    -Increased max price percentage to $5.00 or >20% whichever greater (from $5.00 or >10%)
    -Increased buffer zone to 1,500 ft outside large arenas
    -Reasserted application to out of state entities
    -Expanded ice/excess charges penalties and steeply increased fines:
    -Upgraded acceptance of ice to a class A misdemeanor
    -Made ice payment a class A misdemeanor
    -Created class E felony to pay or accept >$1,000 for an event (not limited to single performance)
    -Sunset 06/01/03
  • L.2003 (Ch. 68)

    -2 year straight extender
    -Briefly expired awaiting Governor review (delivered 05/30/03)
    -Sunset 06/01/05
  • L.2005 (Ch. 106 &107)

    -2yr extender
    -Clarified ticket transactions are of public interest
    -Clarified appl. to out of state entity regardless of buyer/seller residency for NY based events
    -Added internet services as resellers w/ license/posting req
    -Increased license, cert, change fees ($5k, $1k, $1k from $200, $50, $10) & bond ($25k from $1k)
    -Exempt fee for direct sellers & license for auctions
    -Max price ONLY for small (<6,000 seat) venues
    -Delivery fee <$25
    -Refund policy
    -ACAL Leg Report 01/01/07
    -Sunset 06/01/07
  • L.2005 (Ch. 134)

    Chap. amendment
    -Restored max price for larger arenas, creating a tiered max price
    -Max price >20% for small arenas (<6,000) and >45% for larger arenas (>6,000)
    -Required ticket print/endorsed accordingly
    -Removed $25 limit for delivery fee, allowing common carrier "reasonable and actual charges" as part of the established price
    -Report to be completed by the Consumer Protection Board, not Legislature
    -Due to brief sunset on 06/01-06/14/05 during delivery to Governor, revived Art. 25 05/31/05
  • L.2007 (Ch. 61)

    -2yr extender
    -Removed local control (i.e DCA) & grant to Dept. of State
    -Max price elimination
    -Clarified established price fixed at time of sale
    -Refund policy retained
    -Final auction price is last sale price or evenly divided value of last sale price of season ticket
    -Added final price print
    -Restored ticket speculator ban
    -Reworked personal use exemption
    -Buffer reduced to 500ft & exempt at physical location
    -Season ticket transfer restriction prohibited (ticket as license)
    -Sunset 06/01/09
  • L.2009 (Ch. 68)

    -1 year extender
    -Prohibits operator's agent sale to "secondary resellers" (1st ref. primary v. secondary sale)
    -Operator disclosure of obstructed view seats
    -Dept. of State Report by 02/01/10 on:
    -Benefit of hold back disclosure
    -Harm of ticket speculation (prior to initial sale access)
    -Impact of automated bulk ticket purchase
    -Comparison w/ max price where in effect
    -Increased enforcement (in/out state)
    -Secondary market dereg
    -Avg resale data requirement
    -Economic impact
    -Sunset 05/10/10
  • S.7836 2010 (Gov. Program 253) Not Passed

    -1 week extender failed to be advanced by either house
    -Proposed Sunset (5/21/10)
  • Sunset II (2010)

    Law sunset (05/15/10)
    -Theatre ticketing reverted to Old Art. 25 ACAL, L.1983 (Ch.876)
    -Boxing ticketing* reverted to Old L.1923 (Ch. 699)as amended by L.1981 (Ch. 603)
  • L.2010 (Ch. 151)

    -1yr extender
    -Added operator ticket office for "first"/direct sale; buffer exempt
    -Allow operator offer gps, students, ppl w/ disabilities, etc at discount
    -Ban paperless ticketing without transferability unless transferable option offered
    -Require avg resale data report to DOS
    -Prohibited automated bulk purchases (bots):
    --Civil penalty for use ($500-1k), software control ($750-1.5k), vio in last 5 yrs ($1k-5k) & forfeit.
    --AG to enforce
    -Permanentized bots & buffer provisions
    -Sunset 05/15/11
  • L.2011 (Ch. 19)

    -1yr straight extender
    -Cites additional time needed to see impact of changes made by L.2010 (Ch. 151)
    -Sunset 05/14/12
  • L. 2012 (Ch. 28)

    -1yr straight extender
    -Recites additional time needed to see impact of changes made by L.2010 (Ch. 151)
    -Sunset 05/14/13
  • L. 2013 (Ch. 28)

    -1yr straight extender
    -Recites additional time needed to see impact of changes made by L.2010 (Ch. 151)
    -Sunset 05/14/14
  • L. 2014 (Ch. 21)

    -1yr straight extender
    -Recites additional time needed to see impact of changes made by L.2010 (Ch. 151)
    -Sunset 05/14/15
  • L.2015 (Ch. 15)

    -1yr straight extender
    -Recites additional time needed to see impact of changes made by L.2010 (Ch. 151)
    -Sunset 05/14/16
  • AG Report: 'Obstructed View: What's Blocking New Yorkers from Getting Tickets'

    AG Report recommended to:
    -Reinstate max price
    -Impose criminal penalties for automated purchasing software (bots)
    -Reform venue "hold backs"/reserved tickets through available seat disclosure
    -End semi-ban on paperless ticketing, allowing a pure non-transferable paperless system
    -Ticket resale platforms compliance with licensure posting/price listing laws
    -AG asserted expectation to propose a Dept. of Law Program bill to advance these
  • L.2016 (Ch. 34)

    -1yr 1mos+ straight extender
    - Governor Andrew Cuomo issued a press statement (not a formal approval message) in tandem with his approval expressing "disappointment" that the bill did not address strengthened anti-bots provisions or venue hold backs. Even so he signed the extension out of concern for market & consumer disruption & job loss.
    -Governor asserted he would form a stakeholder working group to recommend reforms before the 2017 sunset; absent which he wouldn't extend
    -Sunset 06/30/17
  • L.2016 (Ch. 472)

    -Criminalized the use of or control of automated purchasing software (bots) or knowingly resells tickets obtained in this manner
    -Makes it a class A misdemeanor
    -Removed limitation to "automated" ticket purchasing software and expands definition of bots to include with human assistance
    -Increased max civil penalty for bot use ($500-1.5k) & reduced time frame for violation in last 3yrs (from 5yrs)
    -Added civil penalty to resell ticket obtained by bots ($500-1.5k); personal use exempt
    -Permanent
  • Federal Law: Better Online Ticket Sales "BOTS" Act (PL.114-274)

    -Prohibited use of technological measures (bots) to purchase tickets at event exceeding 200 persons.
    -Prohibited sale of tickets obtained in this manner
    -Allowed create use of software to bolster security
    -Violations are treated as FTC Act unfair and deceptive acts
  • L.2017 (Ch. 68)

    -1yr straight extender
    -Sunset 06/30/18
  • L.2018 (Ch. 110)

    -3yr extender
    -require disclosure of all fees and surcharges in purchase
    -clear conspicuous notice identifying as a secondary resale site
    -resellers to provide license # on any platform
    -resellers would be prohibited from using a name in its website or URL that appears to be a primary seller
    -Loss of license and barred 3 yrs if bots used or software owned
    -allow teams (Yankees) 30k> seat stadium to offer membership passes (discounted tickets to a certain number of games)