Ticket resellers sue to block DC cap on resale prices
SeatGeek, Vivid Seats, Gametime and TickPick sued Washington, DC, to block its new ticket resale law. Starting January 1, it caps resale prices at 10% above the original price and limits fees to another 10%. The companies call the law unconstitutional, and its author pushed back.
Four ticket resale marketplaces and an industry group have sued the District of Columbia to block a new law that caps what fans can be charged for resold tickets, Bloomberg Law and TicketNews reported.
The suit was filed Oct. 14 in U.S. District Court for the District of Columbia by the Ticket Policy Forum, SeatGeek, Vivid Seats, Gametime and TickPick, TicketNews reported. It targets the RESALE Act, which limits resale prices for covered live events to 10% above the original price and caps marketplace service fees at another 10%. The rules take effect Jan. 1, 2027. The plaintiffs also asked for a preliminary injunction to stop enforcement before then.
The companies say the law violates the Constitution "several times over," Bloomberg Law reported. They argue it forces them to operate at a loss by dictating the terms of private deals that happen outside Washington and shields "favored local interests from out-of-state competition." They also object to having to post a ticket's original price, which they say they "did not set, do not receive, and generally cannot know."
"Under the guise of affordability, the District enacted a law that will drive ticket sales into the shadows, subjecting fans to greater risks from street-side scams and increased fraud," said Brian Berry, executive director of the Ticket Policy Forum, in a release cited by Bloomberg Law.
The law's backers pushed back right away, TicketNews reported. They include Councilmember Charles Allen, who wrote the legislation, and Audrey Fix Schaefer of the National Independent Venue Association, who works for the concert promoter I.M.P. Schaefer gave TicketNews figures showing that I.M.P. tracked $13.9 million in advertised resale listings for more than 111,000 tickets at its venues in September, with 92% listed above face value. Those are asking prices, not completed sales.
The resellers argue that their marketplaces protect fans by guaranteeing a valid ticket or a refund, a big change from the days of resale on the sidewalks outside arenas, Bloomberg Law reported.
What we know: Resellers have sued to block DC's price and fee caps before they start on Jan. 1, 2027.
What we don't: Whether a judge will block the law before it takes effect.
Where outlets agree Bloomberg Law and TicketNews both report that SeatGeek, Vivid Seats and other resellers sued to block DC's RESALE Act, calling it unconstitutional.
Where they differ The resellers say the caps will push fans toward scams, while the law's backers point to venue data showing most resale listings priced above face value.