California Bill to Cap Concert Ticket Resale Prices Dies in Senate

Assembly Bill 1720, known as the California Fans First Act, was held by the Senate Appropriations Committee on Thursday, effectively ending its prospects for this legislative session, according to The Hollywood Reporter.

The measure, introduced by Democratic Assemblymember Matt Haney of San Francisco, would have capped certain ticket resales at 10% above the original purchase price, including applicable fees, according to The Hollywood Reporter. The legislation had been narrowed during the legislative process to focus largely on independent venues with capacities of 3,000 people or fewer and certain nonprofit venues.

The bill’s failure followed an expensive lobbying battle over how California should regulate its secondary ticket market. StubHub, one of the largest ticket-resale platforms, spent about $3.4 million lobbying in California this year while opposing the legislation, according to The Hollywood Reporter.

Supporters argued that limiting resale profits would discourage professional brokers from buying large numbers of tickets to popular concerts and immediately listing them at substantial markups. Artists and independent venues were among those supporting the legislation, according to the publication.

Read more: Live Nation Faces Growing UK Antitrust Pressure Over Industry Influence

StubHub opposed the proposed price ceiling, arguing that restricting resale prices would hurt consumers and interfere with the functioning of the secondary market, The Hollywood Reporter reported. The company and other opponents have maintained that resale marketplaces provide fans with flexibility to buy and sell tickets after an initial purchase.

The dispute reflects growing frustration over the cost and availability of concert tickets, particularly for high-demand tours. Tickets to major shows can disappear quickly during primary sales before appearing on resale platforms at significantly higher prices, a practice that has drawn criticism from musicians, fans and lawmakers.

Haney criticized the committee’s decision and indicated that supporters would continue pursuing changes to California’s ticketing rules, according to The Hollywood Reporter. The measure’s defeat means California will not impose the proposed 10% resale ceiling during the current legislative session.

Other efforts to regulate ticket sales remain alive in Sacramento. A separate measure, AB 1349, advanced while AB 1720 was held, according to reporting on the legislative proceedings. That proposal addresses practices including speculative ticket listings, deceptive websites and efforts to circumvent purchasing limits.

The outcome leaves California’s resale market without the price restriction sought by AB 1720’s supporters while preserving the ability of ticket holders and brokers to sell qualifying tickets at prices determined by the secondary market.

Source: The Hollywood Reporter