California Ticket Resale Price Cap Bill Stalls Amid Lobbying
A California bill aiming to cap concert ticket resale prices has failed to advance. StubHub spent millions lobbying against the legislation, which sought to limit resale to 10% above face value.
Key takeaways
- California Assembly Bill 1720 proposed capping concert ticket resale prices at 10% above face value.
- StubHub spent nearly $2.6 million lobbying against the bill in the second quarter of the year.
- The bill was supported by artist and independent venue organizations but opposed by resale platforms.
- Critics argued the legislation would benefit Live Nation and Ticketmaster by reducing competition.
- The bill failed to advance after being held in the Senate Appropriations Committee.
What Happened
Assembly Bill 1720, known as the California Fans First Act, which proposed capping concert and live event ticket resale prices at 10% above their original value, has been held in the Senate Appropriations Committee and failed to advance. This legislation was authored by San Francisco Assemblymember Matt Haney.
Why It Matters
The bill aimed to curb price gouging by ticket brokers and resale platforms, making live events more accessible. Supporters argued it would protect fans from inflated prices and combat scalping, while opponents contended it would harm competition and benefit major ticketing companies like Live Nation and Ticketmaster.
Background
StubHub reported spending nearly $2.6 million on lobbying efforts in California between April and June to oppose AB 1720, marking its highest quarterly lobbying expenditure in the state. The company has spent a total of $3.4 million this calendar year on lobbying. Similar price cap measures have recently been enacted in Maine, Vermont, and Washington, D.C., with Massachusetts also considering legislation.
Key Facts
- California Assembly Bill 1720 sought to limit concert ticket resale prices to no more than 10 percent above the original price.
- StubHub reported $2.6 million in lobbying expenses in California from April to June, and $3.4 million overall for the calendar year.
- The bill received support from artist and independent venue groups, including the National Independent Venue Association and the Music Artist Coalition.
- Opposition to the bill came from resale platforms like StubHub, SeatGeek, and Vivid Seats.
- Critics argued the bill would strengthen the market position of Live Nation and Ticketmaster, while supporters claimed it would end ticket scalping.
Sources reviewed
Project Chintan independently synthesized and analyzed information cross-checked across the sources listed above.
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