A twitter friend brought this to my attention last week. I was at the beach getting some much needed R and R but felt that I should weigh in on it today.

According to this article by Al Branch over at Ticket News, Ticketmaster is advancing bills in Florida and Minnesota that would effectively give them greater control over concert presales. You can read the full text of the article here. Now, just the fact that Ticketmaster is lobbying in support of legislation on the ticketing industry should be enough to scare you into action, but if not…

I visited the websites for both the Minnesota and Florida Legislature to get the text of the actual bills- you can view them by visiting the links below:

Minnesota HF 819: Internet Sale of Event Tickets

And

Florida CS/ HB 1287: Resale of Tickets (summary and full text)

Interestingly enough – there are two other bills making their way through Florida as well – SB 1962 (summary and full text) and SB 2074 (summary and full text).

For those of you uninterested in navigating the legalese, I will simplify the gist of the legislation:

Ticketmaster is making a power grab to limit ticket presales and re-sells unless authorized by the primary ticket seller – in many cases, Ticketmaster. So Ticketmaster, in the midst of trying to establish a monopoly on the national scale, is now simultaneously looking to eliminate competition in the presale space and eliminate the reseller market altogether.

For those of you who aren’t savvy in this space, “presales” are tickets that go on sale before they are made available to the general public, often going on sale to, for example, fan clubs. They have been an established component of the concert industry for decades, but now Ticketmaster wants them stopped. Check this language in Florida HB 1287: “requiring that a person or entity that offers to sell or resell over the internet tickets to specified public entertainment or amusement events of any kind may not offer tickets for sale until such tickets have first been offered for sale via an event-provider –authorized outlet or offering.” The Minnesota bill has a similar anti-presale tilt: “The initial seller shall not divert tickets from the initial sale to be sold in any other manner.”

In other words, if Ticketmaster doesn’t feel like allowing a presale in Florida, it won’t happen. In Minnesota, it will be ILLEGAL to have presales.

There is also language in these bills that prevents or limits tickets from entering the secondary market. While in theory (and to the average state legislator) this sounds great, it sets a dangerous precedent. Some of you may recall many moons ago when I blogged about the Seven Principles of the Ticketing Industry. Principle four is what we see in action here- “Where there are nuisances, there are regulators.” It is dastardly (and again, should cause concern) that the very same company causing all of the nuisances is the one driving regulators to action. Of course, the well paid Ticketmaster lobbyists are keeping the true grim future scenario out of the minds of the regulators deciding the fate of the issue, as seen in Florida, where the bill has passed unanimously through two committees so far. If successful, Ticketmaster will both outlaw presales and resells, gaining a pretty tight death grip on the large entertainment venues of Florida and Minnesota.

So, if you live in Florida and occasionally buy tickets to live events, read HB 1287
(it won’t take long) and get in touch with the members of the General Government Policy Council Pronto. They are listed here: http://www.myfloridahouse.gov/Sections/Committees/committeesdetail.aspx?CommitteeId=2469 . At least contact Representative Troutman and let him know that this legislation deserves further scrutiny and revision. Ditto for you Minnesotans: http://www.house.leg.state.mn.us/members/hmem.asp

The answer to scalping is NOT to limit presales or introduce harmful regulation into this industry. The bottom line is this: scalping takes place because the face value of some tickets is significantly lower than the market value. Until all parties involved can agree on how to make these two values close enough at onsale to discourage scalpers, the practice will continue.

In related news: The Grateful Dead may have introduced a solution to this problem. What do you think?

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