California proposes 10% cap on concert ticket resale prices

California is poised to become the second U.S. state to strictly regulate the ticket resale market following the introduction of the California Fans First Act.

The proposed legislation, Assembly Bill 1720, seeks to dismantle predatory "scalping" practices by legally limiting how much markup a reseller can charge for live entertainment tickets.

What we know:

Introduced by Assemblyman Matt Haney (D-San Francisco), AB 1720 would make it illegal to resell tickets for concerts, theater, and comedy shows for more than 110% of their original face value, Billboard reports.

Face value is defined as the base price plus all initial service fees. Notably, the bill currently excludes sporting events from these price protections.

The bill has secured significant industry support from the National Independent Venue Association (NIVA), NIVA CA, and the Music Artists Coalition (MAC). 

These groups argue that high resale prices drive "attrition"—where fans buy expensive tickets they eventually cannot use, leaving venues with empty seats and lower revenue from food, beverage, and merchandise sales.

What we don't know:

Their bill's final legal language and specific enforcement mechanisms are still being finalized by state lawyers.

It is not yet clear how the state will monitor massive secondary platforms like StubHub and Viagogo to ensure compliance, or what the specific penalties will be for individual brokers who circumvent the cap.

What's next:

AB 1720 will move through the legislative committee process, where it will likely be amended and paired with the existing AB 1349 to form a comprehensive package of consumer protections for California ticket buyers.

If passed, California would join Maine as a leader in national ticketing reform, potentially influencing pending legislation in New York, Vermont, and Tennessee.

The Source: This report is based on legislative filings from the California State Assembly and direct interviews provided to Billboard by Assemblyman Matt Haney and industry representatives from NIVA CA and the Music Artists Coalition.

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