Ticket resellers sue to stop DC’s RESALE Act
The D.C. Council passed a bill in June limiting how much resellers can raise the price of tickets, but a group of resellers are suing, arguing the bill is unfair and could lead to a rise in fraud.
There are two types of ticket sellers: primary sellers like Ticketmaster (owned by Live Nation) and secondary resellers — also Ticketmaster but including platforms like StubHub, SeatGeek and Vivid Seats, as well.
Some concert venues and artists say the secondary market drives up prices, so the D.C. Council unanimously voted for a bill called the RESALE Act.
“It really is leveling the playing field for the person who wants to go see a show,” D.C. Councilmember Charles Allen said.
The bill, which goes into effect in January, bans bot scalpers, puts a 10% price cap on resale tickets and forces resellers to reveal the original price.
Ticket resellers want to stop the bill.
“The law that the Council passed is unconstitutional on multiple grounds,” said Brian Berry of Ticket Police Forum, the trade group representing the ticket resellers.
In the lawsuit, they argue the D.C. bill violates the First Amendment by forcing resellers to reveal the original price. They also say the bill could increase fraud, with more people selling on social media, and force resellers to operate at a loss.
“That $4 on a $40 ticket is not enough to support the operations of the business,” Berry said. “We made this point to the Council. We asked where they came up with this number, and they didn’t have an answer. They pulled it out of thin air.”
IMP Entertainment, which owns the 9:30 Club and supported the bill, said it hopes the limits on resellers do take effect.
“They just want to keep taking advantage of everyone,” said Audrey Fix-Schaefer of IMP.
“The audacity that they think they’re being picked on is kind of humorous,” Allen said. “They have been running this scam for a long time and getting away with it, and that’s gonna change.”
Ticket resellers are asking the judge for a preliminary injunction to block the law while the case plays out in court. A hearing date has not yet been set.
