A high-profile Tennessee ticketing bill attempting to rein in the secondary industry has suffered a fate all too familiar to political wonks who follow the legislative process. The Fairness in Ticketing Act, which tried to force scalpers to disclose a ticket's face value, has died in committee.
The Ticketmaster-backed legislation was not pushed forward by the House's Business and Utilities Committee. The bill can be addressed again by the committee next year, and the battle over secondary ticketing is expected to continue on in different statehouses across the country.
"I don't think this will change anything," said Michael Marion, who is president of Fans First Coalition and GM of Verizon Arena in North Little Rock, Ark. "We'll continue to provide resources and promote our message. In states where scalping is legal, we think it needs to be regulated."
Tennessee’s bill is the first of its kind in the state to attempt to place restrictions on the secondary market. The bill asks sellers to disclose whether they have physical possession of a ticket, and more clearly spell out their refund policy.
“The bill is about control,” StubHub’s Chief Legal Officer Lance Lanciault told Venues Today in March. “It’s about limiting competition and limiting consumer choice about where fans can resell tickets.”
Both those for and against the bill agree there are issues that need to be addressed. One of them is that online sellers used automated computer programs, or bots, to purchase tickets immediately after they go on sale and buy up the inventory. Some sellers even post tickets online before they've even gone on sale, a practice called 'speculative listing' that drives venue managers bonkers.
"(The Fairness in Ticketing Act) was going to make scalpers tell the truth about what they were selling and that's obviously not what they want to do," said Marion. His Fans First Coalition is made up of more than 80 artists, venues and promoters including Bonnaroo co-founder Ashley Capps, who has expressed support for the bill.
Resale giant StubHub and its parent company eBay have fought hard against the bill. They accuse proponents of using the legislation to push consumers toward their own ticket offices and Ticketmaster.
"We look forward to continue working with Tennessee state officials to advance better methods to protect consumers in their purchase of event tickets," Lanciault said in a statement. "We appreciate the opportunity to be a part of these important discussions."
Recently, StubHub's stance against the proposed restrictions gained more political support from conservative Republican groups such as The Nashville Tea Party, the Tennessee ConserVOLiance and the American Conservative Union. Many considered the proposed rules to be onerous to the consumer and a violation of free market principles. Fans First and other advocates for the Fairness in Ticketing Act have pointed the finger at StubHub's lobbying power for why the bill was not pushed through the House Committee.
Marion says he expected the route to getting the Fairness in Ticketing Act passed to be difficult, but that it will get more support as other arenas and artists around the country push similar legislation.
"The reality is they are fighting everywhere and we're fighting here and in other states," he said. "We still see it as so-far-so-good."
Interviewed for this story: Michael Marion, (501) 975-9030; Lance Lancaiult, (540) 491-4552