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Internet Ticket Sales
e-Businesses, by forming networks of season ticket holders and entering into contracts with entertainment venues, provide Internet customers with entry passes for concerts, sports and other spectator events.
Generally, Internet ticket providers are in the business of buying and selling tickets to such events above the face value of the ticket. Some people have equated such Internet ticket providers with ticket scalpers, and claim that they are acting unlawfully. In particular, some state anti-scalping laws have been applied to Internet ticketing transactions, resulting in criminal and civil sanctions. But the application of proper Internet notices and appropriate Web site access limitations may render such state anti-scalping laws moot.
Twenty-nine states have anti-scalping laws, including New Jersey, New York and Pennsylvania (see, N.J. Stat. Ann. 56:8-33, 56:8-34 (2005); N.Y. Arts & Cult. Aff. Law 25.03, 25.05 (2003); and Pa. Stat. Ann. tit. 18, 6910 (2004)). Anti-scalping statutes typically have restrictions on time, location, price and the types of events for which tickets may be sold. For example, under the New York Arts and Cultural Affairs Law, it is illegal to resell tickets “within one thousand five hundred feet of a place of entertainment having a permanent seating capacity in excess of five thousand persons.”
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