California is targeting concert and event ticket listings for seats that sellers do not actually have. Gov. Gavin Newsom signed a bipartisan bill banning so-called "ghost," or speculative, ticket sales. The bill also prohibits software used to circumvent venue purchasing limits.
Here's what to know
Under Assembly Bill 1349, a reseller cannot advertise a ticket before actually obtaining it, CalMatters reported. The law also bans software that circumvents venue rules that limit how many tickets a single buyer can buy.
California is also requiring resellers to "implement reasonable measures" to stop speculative listings. Breaking the law could incur misdemeanor charges and other penalties, giving authorities a way to police a market wherein buyers have often had little recourse.
After approving the bill, Newsom described it as a basic consumer protection issue, writing on social media, "Buying a ticket shouldn't come with hidden risks or unfair practices," per CalMatters.
More background
The bill's author, Assemblymember Isaac Bryan, a Culver City Democrat, has said the idea was shaped in part by a ticket search he conducted with a friend for a Hollywood Bowl concert. According to Bryan, they saw pricey listings online before tickets had officially gone on sale.
"Many fans buy these tickets not knowing that they are listed at a price greater than they would actually be when they eventually go on sale," Bryan said during a June hearing, according to CalMatters. "In the worst instances, fans never actually acquire the ticket that they paid for, leaving our small venues in California ultimately on the hook."
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Live Nation — the entertainment giant that owns Ticketmaster — supported the bill, saying in a January statement that "no one should be able to scam fans by listing tickets they don't have."
That stance prompted pushback from critics, who argued the measure might help Live Nation at the expense of competing resale platforms. StubHub, for its part, spent $4.4 million trying to influence this bill and several others over the two-year legislative session, the outlet noted.
What's being done?
The state's approach is to curb speculative listings and automated workarounds so buyers know what they are paying for before a purchase is made.
Even so, Newsom indicated the law may need more work. In his signing statement, he urged lawmakers to take another look because some marketplaces could be exempt even though they should fall under regulation. Critics said StubHub appeared to be one of the platforms outside the law's reach.
Though StubHub lobbied aggressively against the bill, it supported the final version after revisions made it less favorable to Live Nation, CalMatters reported.
Where can I learn more?
These stories span hidden fees and airline tactics.
• New York is targeting subscription traps and hidden fees with a new click-to-cancel rule.
• Qatar Airways drew scrutiny in Australia for flying "ghost flights" through a legal loophole.
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