What's Happening?
California Assemblymember Matt Haney has introduced a new bill, the California Fans First Act, which seeks to impose a price cap on resale tickets. The legislation, known as AB 1720, aims to limit resale prices to no more than 10% above the original ticket's face value. This move is intended to make tickets more affordable for fans and address the issue of inflated prices in the secondary market. The bill comes shortly after another proposed legislation, AB 1349, which targets speculative ticket sales by requiring sellers to possess tickets before listing them for sale. Both bills are part of a broader effort to regulate the resale ticketing market in California. Ticketmaster and its parent company Live Nation, which dominate the ticketing industry,
are currently facing legal challenges from the Department of Justice and the Federal Trade Commission over alleged monopolistic practices.
Why It's Important?
The introduction of AB 1720 is significant as it addresses the ongoing issue of high ticket prices in the resale market, which has been a major concern for concertgoers. By capping resale prices, the bill aims to protect consumers from exorbitant costs and ensure fair access to live events. This legislation could potentially disrupt the business model of resale platforms that profit from high markups. Additionally, the bill highlights the broader debate over the role of major ticketing companies like Ticketmaster and Live Nation, which have been criticized for their market dominance. The outcome of this legislative effort could influence similar initiatives in other states and set a precedent for how ticket resale markets are regulated across the country.
What's Next?
If passed, AB 1720 would apply to all shows in California, excluding sporting events, and could lead to significant changes in the state's ticketing industry. The bill's progress will be closely watched by stakeholders, including consumers, ticketing companies, and policymakers. Live Nation has expressed support for efforts to protect fans and artists, but critics argue that the focus on resale markets diverts attention from the company's own practices. As the bill moves through the legislative process, it may face opposition from those who believe it could harm the competitive nature of the resale market. The outcome of this legislative effort could also impact ongoing legal battles involving Ticketmaster and Live Nation.
