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Update on Changes In New York's Ticket Sales Law
New York's regulatory scheme for event ticketing is one of the most complex of its kind and no stranger to overhauls of various provisions, which seek to protect consumers from unfair and predatory ticketing practices. The landscape's most recent update occurred in June 2022, when Governor Kathy Hochul signed into law S9461, modifying certain regulations governing live-event ticket sales that are codified in New York's Arts and Cultural Affairs Law (ACAL). The bill had been introduced by state Senator James Skoufis in May following a year-long legislative inquiry into the current state of ticketing practices in New York.
As discussed below, the new law principally affects the rules governing disclosure requirements for primary ticket sale prices and restricts the means of secondary ticket resale, including by expanding penalties for the use of scalper software "bots" and unauthorized ticket purchasing software.
The ACAL has been revised by the New York legislature several times in the past 15 years, primarily in response to concerns about ticket pricing and availability. In 2007, the ability to resell tickets was expanded when the legislature removed the cap on ticket resale prices (2007 N.Y. Laws 2738), in turn leading to a 2010 prohibition on using automated ticket purchasing software (2010 N.Y. Laws 781, 785). A subsequent amendment passed in 2018 included additional disclosure requirements for ticket prices, included certain exceptions to paperless ticket regulations and imposed notice requirements for ticket resellers (2018 N.Y. Laws 110; see also, Anthony J. Dreyer and Andrew Green, "New York State's Latest Ticket Sales Reforms," Entertainment Law & Finance, November 2018, p. 5; https://bit.ly/3ccH9kD). And a year-long investigation into event ticketing practices, conducted between 2020 and 2021, culminated in a 2021 proposal (also introduced by Senator Skoufis) seeking to institute major, sweeping changes to pricing and refund requirements and exclusive ticket-sale relationships, a proposal that ultimately died in committee. See, Anthony J. Dreyer and Andrew Patrick, "Sweeping Changes Proposed to New York Ticketing Regime," New York Law Journal, June 3, 2021; https://bit.ly/3wpSmF3.
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