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A Look at Revisions to New York State's Ticket Resale Law
[Editor's Note: Even with the success of some major tours, the 2010 concert business is turning out to be an economic disappointment. Consumers have long raised concerns over ticket prices and ticket availability, but the currently weak U.S. economy has made these issues more pressing. This article discusses the recent comprehensive changes in New York's ticket resale statute. The detailed law, which is set for further revision next year, touches on many hot-button, ticket resale aspects that in general impact venues, promoters, artists and others in the live event industry.]
Among the flurry of legislation passed by the New York State Legislature during the summer was a bill amending New York's Arts and Cultural Affairs Law. The bill, which subsequently was signed into law by Gov. David A. Paterson, governs the sale of tickets to places of entertainment in the state, and represents New York's third ticketing resale law in as many months.
The new ticketing law imposed several, potentially significant changes affecting New York venue operators and ticket sellers, including new rules governing the use of paperless tickets, limitations on service charges that can be imposed on ticket buyers, a ban on the use of automated ticket buying software, tighter restrictions on “ticket holds,” and twice-annual reporting obligations for licensed ticket sellers in the state. In addition, the new law provides for increased criminal penalties against companies found to have violated the ticketing law. (“Operator” is defined in the law as “any person who owns, operates, or controls a place of entertainment or who promotes or produces an entertainment.” N.Y. Arts & Cult. Aff. L. '25.03 (as amended July 2010).)
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