California has enacted measures to combat the sale of ‘ghost tickets’ in the event ticket resale market. Governor Gavin Newsom signed the bipartisan bill, AB-1349, aimed at curbing speculative ticket sales. These tickets, often sold for concerts and sports events, are listed by resellers before they possess them.
The new law prohibits sellers from advertising, listing, or selling tickets without possession or the legal right to receive them, unless permitted by the event’s presenter or venue. Newsom emphasized that purchasing a ticket should not involve hidden risks or unfair practices.
The legislation also bans the use of software to bypass ticket limits, queues, and presale constraints. It restricts deceptive websites and advertisements that make resellers appear as authorized ticket sources. Sellers violating these rules may face misdemeanor charges and penalties.
Despite signing the bill, Newsom expressed reservations, noting an uneven approach that allows certain ticket sellers to bypass certain obligations. He urged Assemblymember Isaac Bryan, the bill’s author, to refine the law. Although Newsom did not specify which sellers these exemptions apply to, critics argue that amendments made late in the legislative session effectively exempt platforms like StubHub.
The final version of the bill excludes resale marketplaces from being classified as speculative ticket sellers. However, they are barred from knowingly or recklessly facilitating speculative sales and must take reasonable measures to prevent them. The law also provides a safe harbor to California professional sports teams and venues managing their ticket inventory.
The National Independent Venue Association (NIVA) initially supported the bill but later urged Newsom to veto it after amendments. The association criticized the private right of action for speculative ticket sales that burden independent venues and exempt resale marketplaces. Stephen Parker, NIVA’s executive director, noted that while the bill could have stopped ghost ticket sales, it now poses risks to small businesses and fans’ financial well-being.
Initially, entertainment company Live Nation supported the bill, while StubHub lobbied against it, spending $4.4 million during the legislative session. Eventually, StubHub supported the final version, while Live Nation did not comment.
As ticket prices for live events continue to rise, various legislative bills addressing ticketing issues are being introduced across the U.S. California joins states like Maryland, Minnesota, and Maine in imposing restrictions on speculative ticket sales. Lawmakers also considered a separate proposal to cap resale ticket prices at no more than 10% above face value, which stalled in the Senate Appropriations Committee.