NYS Music 20​16

Tag: Eric Schniederman

  • Cuomo Signs Ticket Bot Bill Into Law

    New York Governor Andrew Cuomo signed a bill this week that calls for harsher punishments for those using automated ‘Ticket Bot’ software to purchase large blocs of tickets for concerts and other events. These tickets often turn up on third party ticket resale sites such as Stub Hub minutes after purchase at a much higher markup.

    The new law, sponsored by Assemblyman Marcos Crespo (D-Bronx) and Senator Andrew Lanza (R-Staten Island), makes using ticket “bots,” or willingly reselling tickets purchased using the software illegal in New York State.

    The use of ticket bots was already illegal in New York but this law toughens penalties beyond the civil level. It carries with it a civil penalty of a $500-$1500 fine and forfeiture of any profit made for anyone reselling tickets purchased using “bots” and rises to the level of class A misdemeanor if the person knowingly uses “bot” software to purchase tickets with the intent to resell for profit.  In a statement, Governor Cuomo said:

     These unscrupulous speculators and their underhanded tactics have manipulated the marketplace and often leave New Yorkers and visitors alike with little choice but to buy tickets on the secondary market at an exorbitant mark-up. It’s predatory, it’s wrong and, with this legislation, we are taking an important step towards restoring fairness and equity back to this multi-billion dollar industry.

    As reported by NYS Music in January, the issue of ticketing “bots” gained widespread attention when New York’s Attorney General Eric Schneiderman issued a report critical of the industry. Several states have anti-scalping laws on the books, but this new law provides the harshest penalties thus far.

    Hamilton creator Lin-Manuel Miranda issued a call this July, via a New York Times editorial, to get tough on ticket “bots.” In it, he praised the efforts of the AG and sponsoring legislators in pushing the bill through and called on Governor Cuomo to quickly sign the bill into law, which he did Wednesday.

    At the federal level, Tuesday the Senate, passed the BOTS (Better Online Ticket Sales) Act of 2016. The bill now moves to the House of Representatives for consideration before it can be signed into law.

  • New York AG Announces Settlement With Ticket Brokers Worth $2.76 Million

    As NYS Music reported in January, New York State Attorney General Eric Schneiderman released a report putting the concert ticketing industry on blast. That report found that at least 54 percent of tickets for the biggest shows were being set aside for privileged pre-sale or industry insiders. The report also found ticketing agencies using bots to purchase tickets to be resold at much higher prices on resale sites.

    Last week, the AG’s office announced a settlement has been reached with six ticket brokering companies as a result of this report. This week, Schniederman pressured the major players, including StubHub, Ticketmaster and VividSeats, to level the playing field for the general public looking for tickets to big-ticket shows.

    AG Shneiderman
    New York Attorney General Eric Schneiderman

    New York law requires ticket re-sellers to be licensed in the state and prohibits them from using bots to buy tickets for resale.  The six firms found to be in violation of state law that are settling with the state on this issue are TicketToad.com, Flying Falco Entertainment of California (doing business as Avery Tickets), Charm City Entertainment, All Events Utah (all out of state) and two New York-based brokers, Just in Time Tickets and A2Z Tix. All but Charm City were found to have used bots in purchasing tickets.

    The settlement among the four brokers has thus far totaled $2.76 million. Charm City skated with a $100,000 settlement, while Flying Falco coughed up the largest settlement at $1,125,000.

    In a statement, Schneiderman said:

    Ticketing is a fixed game. The industry’s tactics prevent New Yorkers from getting tickets at affordable prices, or even getting them at all. Now we are calling on the major industry players to take steps to address these issue.

    According to the Daily News, ticket brokers are willing to work with the attorney general. StubHub has issued a response: “We are in receipt of the letter and are currently reviewing the AG’s request.”

    In his press release, Schneiderman laid the gauntlet:

    Our office has zero tolerance for ticket resellers that use illegal bots to scoop up large numbers of tickets for popular events before consumers can obtain them, and then resell those tickets to those very same consumers at a large markup.  New Yorkers deserve a fairer ticket marketplace.  Our office will continue to enforce New York’s ticket laws by investigating ticket brokers who are breaking our laws, and making them pay for their illegal acts.

    Schneiderman is making the effort and succeeding thus far. It only serves the music industry as a whole for ticket brokers to follow suit. True fans have been getting shut out of tickets for their favorite shows for too long and government is finally catching up with the technology that has kept these fans from those tickets.

    Fans can support face-value ticket re-sale by using websites like cashortrade.org.