California is addressing the issue of “ghost tickets” with a new law aimed at curbing unfair practices in the live-event ticket resale market. Governor Gavin Newsom signed the bipartisan bill, AB-1349, on Sunday. This legislation focuses on speculative tickets, which are sold by resellers before they have secured them.
The new law prohibits sellers from advertising, listing, or selling tickets that they do not possess or have the legal right to receive, unless the venue or event presenter allows it. Governor Newsom emphasized the importance of transparency, stating, “Buying a ticket shouldn’t come with hidden risks or unfair practices,” on the social media platform X.
Beyond banning ghost tickets, the law also outlaws the use of software to bypass ticket limits, queues, and presale restrictions. It targets websites and advertisements that falsely present resellers as authorized ticket sellers. Violators face misdemeanor charges and penalties.
“While there may be good reasons for exempting certain sellers from the bill’s provisions, such a carve-out deserves further discussion.” – Governor Gavin Newsom
Though Newsom signed the bill, he expressed concerns in a signing statement. He noted that the bill might give certain ticket sellers exemptions from some obligations. Governor Newsom encouraged Assemblymember Isaac Bryan, who authored the bill, to revisit these provisions for further refinement.
Critics have highlighted amendments made in the final days of the legislative session. These changes seem to exempt major platforms like StubHub from being classified as speculative ticket sellers. The law, however, still forbids resale marketplaces from knowingly facilitating such sales. It mandates them to implement reasonable measures to prevent speculative sales. Moreover, California pro sports teams and venues managing their own inventory have been given a safe harbor.
The National Independent Venue Association (NIVA) initially supported the bill but later urged for its veto following the amendments. NIVA argued that the final bill allows private actions against speculative ticket sales for independent venues while exempting larger resale marketplaces.
“AB 1349 could have been an opportunity to stop the sale of ghost tickets. It endangers fans’ economic well-being.” – Stephen Parker, NIVA Executive Director
Live Nation initially backed the bill, but ticket reselling giant StubHub lobbied against it, spending $4.4 million during a two-year legislative period. StubHub eventually supported the amended version, while Live Nation withheld comments.
Other states, including Maryland, Minnesota, and Maine, have enacted similar restrictions on speculative tickets amidst rising prices for live events. In California, lawmakers contemplated a separate bill to cap resale ticket prices at 10% above face value, but this proposal stalled in the Senate Appropriations Committee.