The reselling of tickets is a huge industry and one that is often fraught with controversy. In the United States, there are a number of ticket reselling laws governing this industry, and these laws vary from state to state.
Regardless of where you stand on the issue of ticket resale, it’s important to be aware of the laws in your state to avoid getting into trouble. In this article, we’ll give an overview of the ticket reselling laws in the United States so that you can be informed before you make any decisions about reselling tickets.
What is ticket reselling?
When you buy a ticket to an event, you are typically buying that ticket from the primary vendor – the company hosting the event. However, sometimes people resell their tickets either because they can’t go to the event or because they want to make a profit. There are three main ways to resell tickets: online, through a scalper, or at the box office. Each method has its own benefits and drawbacks.
Reselling tickets online
Selling tickets online through a reselling platform is a popular way to resell tickets. The benefit of this method is that you can reach a wide audience of potential buyers. However, you will likely have to pay a service fee to list your tickets on these websites.
There are a few platforms that you can use to resell your tickets online. The most popular ones are Ticketmaster, StubHub, and Vivid Seats. All of these platforms allow you to list your tickets for sale and set your own price. They also have different fees, so be sure to check that before you list your tickets.
- Ticketmaster is the largest ticketing company in the world, so it’s a good option if you want to reach a large audience. The fees for listing and selling tickets on Ticketmaster are $4 per ticket plus a 10% commission on the sale price.
- StubHub is one of the most popular ticket resale websites. It’s owned by eBay, so it’s a safe and reliable option. The fees for listing and selling tickets on StubHub are 10% of the sale price.
- Vivid Seats is a newer ticket resale platform, but it’s growing in popularity. The fees for listing and selling tickets on Vivid Seats are 9% of the sale price.
Reselling tickets at the event
Another option for reselling tickets is at the box office on the day of the event. This is usually only possible if you have extra tickets that you cannot use. The benefit of this method is that there are no service fees involved. However, it can be difficult to find someone willing to buy your ticket at the last minute.
Scalpers are people who buy tickets to an event and then sell them at a higher price. This is often done outside the venue, and it’s illegal in many states. The main benefit of scalping is that it allows you to sell your ticket for more than face value. However, it can be risky because of certain ticket reselling laws.
Is ticket reselling legal in the USA?
The quick answer is: yes, ticket reselling is legal in the United States. However, there are a few key things to keep in mind when reselling tickets. First, it’s important to know the ticket reselling laws in your state. Depending on where you live, there may be different regulations regarding ticket resale. For example, some states require ticket resellers to have a license, while others forbid the practice altogether.
It’s also important to remember that ticket resale is a secondary market, which means that the prices of tickets can fluctuate quite a bit. This means that you could end up paying more for a ticket than you would have if you had bought it directly from the venue. However, it also means that you could potentially sell your tickets for a profit if the demand is high enough.
The current laws about ticket reselling in the USA
As of right now, there are no federal laws in the USA regulating ticket reselling. This means anyone can resell tickets without worrying about breaking the law. However, there are some states that have their own ticket reselling laws regarding ticket reselling.
- New York has a law that prohibits anyone from marking up their tickets by more than 10% or $5 more than the original cost of the ticket.
- In Rhode Island, they prohibit reselling tickets for an amount that is either 10% or $3 more than the original ticket price.
- Under New Jersey state laws, it is illegal to resell tickets for more than 20% or three dollars of the original ticket price.
- In Florida, it is illegal to resell tickets for more than the original price plus any additional fees. If you are caught doing this, you could be subject to fines or even jail time.
- In the state of Washington, ticket reselling is currently regulated by the Ticket Resale Act. This act requires resellers to disclose the face value of the ticket, as well as any fees that may be associated with the purchase. Additionally, resellers are not allowed to sell tickets above face value unless they have obtained prior approval from the venue or promoter.
- In other states like California, Maine, and Alabama, it is only legal to resell tickets as long as the seller has permission from the owner or operator of the venue and the tickets are sold at a value not higher than what you bought them for.
- In Wisconsin, Alaska, and Hawaii, it is illegal to sell tickets at a price higher than the original price of the ticket.
- While in Arizona, Colorado, and Connecticut, ticket reselling is legal as long as the seller discloses the original face value of the ticket and does not misrepresent themselves as being affiliated with the event or venue.
If you follow these ticket reselling laws, you should be able to sell tickets without any problems. However, if you violate the law, you could face civil or criminal penalties.
Is Ticket Reselling a viable business?
In recent years, ticket reselling has become a popular business model for many entrepreneurs. With the advancement of technology, it is now easier than ever for people to buy and sell tickets online. However, there are still some people who are skeptical about whether or not ticket reselling is a viable business.
But the business of ticket reselling is actually a lucrative one. It can be a great way to make some extra money or even a full-time income. But there are some factors that you need to consider to stay within the bounds of the ticket reselling laws.
1. Method for purchasing tickets
The Federal Trade Commission has cracked down on ticket bots and scalpers in recent years. In 2016, they fined two major ticket resellers a total of $16.5 million for using bots to buy up tickets and then resell them at an inflated price. The FTC has also taken action against companies that use deceptive practices to sell tickets, such as hidden fees and misleading advertising.
So what does this mean for you if you’re considering starting a ticket reselling business? Well, first of all, you’ll need to make sure that you’re not using any illegal methods to acquire tickets. This means no using bots or scalping tickets. You’ll also need to be upfront and transparent about any fees or charges associated with your tickets.
2. Competition
There are now many legitimate ticket reselling websites and apps. These websites have invested heavily in developing relationships with venues and promoters, which gives them an advantage when it comes to getting tickets. They also have the benefit of being able to offer features that smaller resellers can’t, such as buyer protection and customer support.
3. Ticket reselling laws in your state
The ticket reselling laws vary from state to state, but generally speaking, it is legal to resell tickets as long as you comply with the rules and regulations set forth by the state. Of course, there are always risks involved in any business, but if you do your research and follow the law, you should be able to run a successful ticket reselling business.
So is ticket reselling still a viable business in the USA? It depends on these factors, as well as your reselling routines. If you’re willing to play by the rules and compete with the big boys, then there’s definitely still money to be made in this industry.
Conclusion
The ticket reselling laws in the USA are complicated and ever-changing. However, one thing is clear: if you want to resell tickets, you need to be aware of the laws in your state. Ignorance is no excuse, and you could end up facing hefty fines if you’re caught breaking the law. So do your research, know the rules, and stay compliant. That way, you can avoid any legal headaches down the road.
If you’re unsure whether or not reselling tickets is the best business for you, then try to find reselling products that you are comfortable trading so you can make the most out of your reselling business.