A new piece of New Jersey legislation seeks to limit the selling power of ticket brokers throughout the state. Under the constraints of the proposed legislation, internet ticket resale sites would be allowed more freedoms when it comes to reselling tickets than their human counterparts.
While the bill would not outlaw or make it illegal for brokers to resell tickets to various entertainment events, it would place brokers at a disadvantage when it comes to setting the price for reselling tickets. Under the proposed bill, no ticket broker would be able to resell tickets at more than 50 percent above acquisition. However, a provision within the bill makes this stipulation moot should a non-ticket broker attempt to resell a ticket on the internet.
The language of the bill would allow for unlimited ticket prices for any ticket resold over the internet, as long as it was not sold by a ticket broker. Tom Pantania, CEO of New Jersey based Select a Ticket and president of the National Association of Ticket Brokers, sees this provision as a conflict with the free market principles that the state upholds. “In the above language, it clearly singles out ticket brokers from being able to participate in the free market,” Patania told TicketNews, “Why would a New Jersey resident have to go to an internet website for some out of state company instead of dealing, as they have been, with the local brokers who reside and do business in this state?” This bill only benefits those websites that claim they are not ticket brokers but rather offer an exchange for people to buy and sell tickets. Traditional brokers will be singled out and unable to participate in the free market.
The bill is expected to be voted on May 19th, having initially been introduced on February 25th. Should the bill be approved, the provisions contained within would be enacted immediately.