The reselling of event tickets, particularly concert tickets, for a profit is a controversial practice. Supporters argue it allows tickets to be allocated to their highest valued use. However, others criticize ticket resales as exploiting fans and artists. The legality of ticket resales depends on state laws. In Texas, reselling event tickets is legal, but there are some restrictions.
Is it legal to resell tickets in Texas?
Yes, reselling tickets is legal in Texas. There is no state law that prohibits the resale of tickets at above face value. However, Texas does prohibit the use of ticket bots – automated software used to quickly purchase large volumes of tickets.
The Texas Business and Commerce Code Chapter 327 makes it illegal to use bots to circumvent security measures and purchase event tickets. Violators can face civil penalties of up to $1,000 per ticket.
So individuals can legally resell tickets in Texas as long as they don’t utilize prohibited bot technology and follow other applicable laws.
Are there limits on how much tickets can be resold for?
No, there are no limits in Texas state law on how much resellers can ask for tickets. The free market determines the resale value of tickets. Popular shows by artists like Beyonce or the Weekend can command resale prices many times above face value.
Economists argue this allows tickets to go to those who value them most. Others view highly inflated resale prices as unfair and exploitative.
Some states do cap resale prices. In New York, resellers can only ask for up to 20% above face value. Texas does not currently have any such limit.
Can venues or artists prohibit ticket resales?
Yes. Event organizers and venues can include restrictions on ticket transfers or resales in their terms and conditions. However, the enforceability of these restrictions is questionable.
Courts have ruled fans have a right to dispose of tickets they legally purchased like any other property. Contract restrictions on resales could be considered overbroad and struck down.
But artists and venues continue to add ticket transfer restrictions. Fans may see language prohibiting sales for above face value when purchasing tickets.
Does Texas prohibit ticket scalping?
No. Many states prohibit “ticket scalping,” the practice of selling tickets on the premises of an event without authorization. But Texas does not have an anti-scalping law.
So in Texas, it is legal to buy and resell tickets on site at a concert or sports event without consent from the venue or organizer.
However, venues can still eject or ban resellers from their grounds for violating their policies. Unauthorized on-site ticket sales also risk local public order offenses.
Are there any other relevant Texas laws?
Yes, the Texas Deceptive Trade Practices Consumer Protection Act has provisions relevant to ticket resales.
The act makes it illegal to misrepresent the price, quality, or characteristics of tickets being resold. Resellers cannot lie or mislead customers about seat locations, access to amenities, etc.
The act also prohibits resellers from selling fake or counterfeit tickets. Violators face civil penalties of up to $10,000 per violation.
Additionally, ticket resellers may need to collect and remit sales tax on purchases. The Texas state sales tax rate is currently 6.25%.
Can venues invalidate resold tickets?
Possibly. Many event hosts are now employing “credit card entry” systems, requiring the card used to purchase tickets to be shown at entry. This allows them to verify purchasers and nullify possibly resold tickets.
However, consumers have complained about being denied entry to events due to technical errors. And bans on ticket transfers remain legally questionable.
So while venues can try to invalidate resold tickets, their ability to do so is limited. Outright refusal of entry based on resale could be grounds for a lawsuit.
Does Texas have any anti-scalping laws for state university events?
Yes. Texas has a specific anti-scalping law for tickets to collegiate sporting events at state-funded schools like the University of Texas and Texas A&M.
The Texas Education Code prohibits reselling tickets to these events above face value plus reasonable handling charges without an authorized agreement with the university.
Violators can face misdemeanor charges punishable by fines of $500 to $1,000 per ticket.
So while general ticket resales are unregulated in Texas, the state does criminalize scalping of university sports tickets.
Conclusion
In summary, reselling tickets for profit is broadly legal in Texas. The state does not restrict how much tickets can be resold for on secondary markets. However, Texas laws do prohibit the use of ticket bots and make scalping state university sports tickets a misdemeanor.
Venues and artists can try to impose resale limits and invalidate transferred tickets. But the enforceability of these policies is questionable under existing law. For now, the Texas ticket resale market remains largely unregulated.
So while ethical or economic concerns persist, those wishing to resell event tickets face few legal barriers in Texas. The market demand, for better or worse, determines the resale value of tickets.
State | Is reselling tickets legal? | Price limits on resales? | Laws against ticket bots? |
---|---|---|---|
Texas | Yes | No | Yes |
New York | Yes | Yes, 20% above face value max | Yes |
California | Yes | No | Yes |
This table compares key ticket resale laws in Texas, New York, and California. Texas stands out for having no price restrictions on ticket resales, unlike New York’s 20% cap. However, all three states prohibit ticket bots used to unfairly corner the market.
References
- Texas Business and Commerce Code, Title 14, Chapter 327
- Texas Education Code, Section 51.9315
- Texas Deceptive Trade Practices Consumer Protection Act
- Anand, Geeta. “High Prices for Tickets Rooted in the Law of Supply and Demand.” New York Times, 6 Oct. 2006.
- R ticket restrictions are legally enforceable.” New York Law Journal, 14 Nov. 2018.
- Smith, Jennifer. “Are Ticket Resale Sites Legal?” Wall Street Journal, 19 Sept. 2018.