The Legal Quandary of Ticket Brokers: A Deeper Look into Resale Practices
Interestingly, ticket brokers who purchase tickets in bulk and resell them at higher prices operate with the permission of certain business licenses. This model, often justified as catering to the elite, has sparked debate over whether it is the same as ticket scalping. In this article, we will explore the legal implications of these practices and discuss why some ticket brokers are legally able to operate despite the widespread perception of ticket scalping as an unjustified practice.
Understanding Ticket Brokers and Resale Practices
Recently, a proposal came to the fore regarding the 2022 Triple Crown event, where ticket brokers managed to secure the best seats for a premium price. For example, the starting price for a Lion King performance on the dance floor was around 175 dollars, while some brokers resold them for up to 385 dollars or more. Such practices have raised questions about the legality and fairness of ticket resale.
Legislative Loopholes and Ineffectiveness
While numerous laws aim to curb ticket scalping, many of these laws are either localized or state-specific. This makes it challenging for regulators to effectively address the issue, especially with online resellers operating from different states or even international jurisdictions. Federal laws could potentially close these gaps by establishing nationwide rules. For instance, requiring ticket sellers like TicketMaster to lock out IP addresses from foreign countries could significantly reduce the risk of foreign scalpers.
The Case for In-person and Telephonic Ticket Sales
In my opinion, the best way to mitigate these practices is to revert to an era where all ticket sales were handled in-person or by telephone only. While this approach might still allow some individuals to scalp tickets, it would significantly reduce their ease and profitability. Modern web scalpers can purchase thousands of tickets within minutes and resell them online for several times the original value. However, in-person scalpers would have to contend with the hassle of standing in line, potentially camping out, and the limited quantity of tickets they can purchase, typically 8 or less per person. Furthermore, they would need to meet buyers in person or go through the hassle of mailing the physical tickets.
Historical Context and Lessons from India
Some years ago, in Bengaluru, the problem of unauthorized ticket reselling was rampant. Employees of the railways were often involved in the practice, and tickets were frequently bought by brokers who would sell them at significantly higher prices. These brokers capitalized on inefficient ticketing systems, exploiting the vulnerability of in-person and online ticket sales processes.
Facing this challenge, some secret operations were conducted to root out these illegal practices. For example, the Indian railway department took steps to halt the involvement of employees in ticket reselling. Similar measures could be implemented in other fields such as movies, cricket, and football to ensure fair ticketing practices and prevent the exploitation of fans.
Conclusion
The issue of ticket brokers purchasing and reselling tickets at inflated prices is a complex one, involving both legal and social dimensions. While the current system allows for some forms of ticket brokerage, it is crucial to evaluate and enhance the regulatory framework to address the growing concerns over fair ticketing and scalping practices. Implementing national standards and reviving in-person and telephonic ticket sales could serve as viable solutions.