States Tackling Ticketing

Legislation surrounding the secondary ticket market has been thrust into the spotlight in two states recently.

In Minnesota, legislators have enacted a law that takes aim at ticketing companies that redirect consumers to secondary sites during the initial onsale.

In case that language seems too vague, the legislation’s nickname – the Bruce Springsteen bill – may ring a bell as to exactly which company is being targeted in the state.

Ticketmaster faced a lot of heat in February when New Jersey fans who attempted to purchase tickets for the Boss’ current tour were redirected to the company’s secondary ticketing subsidiary TicketsNow during the onsale.

After Springsteen and co. denounced the practice, TM issued an apology to the Boss and later settled with fans in the state.

Signed by Gov. Tim Pawlenty May 11, the Minnesota legislation states “the initial seller of tickets shall make available for sale all tickets under control of the initial seller in the manner and under terms directed by the provider of the event or the venue.

“The initial seller shall not, unless authorized by the provider of the event or venue, divert tickets from the initial sale to the general public to be sold in any other manner or under any other terms.”

The bill, which covers concerts, sports events and theatrical events, also prohibits the selling of fake tickets. It takes effect Aug. 1.

In New York, lawmakers are attempting to turn back the clock on a bill signed into law in 2007 that effectively deregulated ticket resales in the state.

Introduced by assemblyman Richard Brodsky, the bill seeks to safeguard the public against “fraud, extortion, exorbitant rates and similar abuses.”

The bill would reinstate some limits on the secondary market, putting a maximum premium price on tickets resold to no more than 25 percent above face value or $10, whichever is greater. It would also make it illegal for the producer or promoter of an event to benefit from secondary sales and ban such resales until one month after the onsale.

Greater transparency is apparently another aim of the New York legislation. If passed, the measure would make public through the state’s consumer protection board the number, location and percentage of tickets sold during an onsale, as well as the average prices of tickets sold on the secondary market.