Government Policy to Combat Ticket Scalping and Reselling

  1. Introduction

The government recognizes that the practice of scalping—where tickets for events are purchased and resold at inflated prices—undermines the fair access of individuals to entertainment and cultural experiences. This policy aims to regulate ticket sales, prohibit reselling through unethical means, and create penalties for those engaging in illegal ticket scalping, particularly when automated bots or other deceptive technologies are used to bypass purchasing limits.

  1. Definitions

For the purposes of this policy:

  • Scalping: The act of reselling tickets for events at prices significantly above their face value for financial gain.
  • Bots: Automated software programs used to purchase tickets in bulk or circumvent limitations imposed by ticket-selling platforms.
  • Event Organizers: Individuals, companies, or institutions responsible for arranging and managing events that require ticket sales.
  • Reseller: Any individual or entity that purchases tickets for the purpose of reselling them.

3. Prohibited Practices

  • Automated Ticket Purchasing: The use of bots or other automated tools to purchase tickets in bulk is prohibited. This includes any attempts to circumvent ticket sales systems, such as evading CAPTCHA tests or exploiting system vulnerabilities.
  • Excessive Resale Pricing: Reselling tickets at prices greater than 20% above the face value, or the price set by the event organizer, is prohibited. In certain cases, event-specific regulations may set lower caps on resale prices.
  • Anonymous Reselling: Reselling tickets without the proper identification or without transferring the ownership in a traceable manner (e.g., transferring through verified platforms) is prohibited.
  • Fake or Fraudulent Tickets: The sale of counterfeit or unauthorized tickets is strictly prohibited. This includes any tickets sold that are not properly verified by the event organizers.

4. Ticket Purchase Regulations

  • Personalized Ticketing: Event organizers must implement systems to link tickets to the identity of the purchaser, requiring the use of government-issued identification or verified online profiles for ticket purchases. This would limit the ability of scalpers to buy tickets in bulk under different names.
  • Limitations on Bulk Purchases: Implement limits on the number of tickets any individual or entity can purchase for a single event, especially for high-demand events.
  • Pre-Authorization and Verification: Require all ticket sellers to incorporate pre-purchase identity verification mechanisms to ensure that tickets are being bought by actual attendees and not bots or resellers.

5. Resale Regulations

  • Approved Resale Platforms: Reselling tickets can only occur on authorized platforms that ensure compliance with fair pricing regulations. These platforms must enforce identity verification, set resale price limits, and provide transparency in the transaction process.
  • Ticket Transfer Transparency: All ticket transfers (resale or gift) must be logged and traceable, with the original purchaser’s identity linked to the resale transaction.
  • Dynamic Pricing Models: Event organizers may introduce dynamic pricing models that adjust ticket prices in real time based on demand, with safeguards to ensure fairness and prevent profiteering from scalpers.

6. Enforcement and Penalties

  • Penalties for Unauthorized Reselling: Individuals or entities caught reselling tickets above the regulated price may face fines, imprisonment, or both. Repeat offenders could face stricter penalties, including revocation of business licenses for resale platforms.
  • Penalties for Bot Usage: Those who use bots to purchase tickets in violation of this policy will face penalties, including fines and potential criminal charges, especially when the bots are used for commercial gain.
  • Website Blocking: Authorities can block or penalize online platforms that knowingly facilitate scalping or bot-related activities, including online resale marketplaces.
  • Ticket Confiscation: Tickets purchased through illegal means (e.g., bot-based purchases) may be revoked by event organizers, with no compensation to the original purchaser.

7. Collaboration with Event Organizers

  • Collaboration with Ticketing Platforms: Government bodies will work with major ticketing platforms to develop and implement anti-bot measures, track suspicious activity, and share data regarding suspected scalpers.
  • Public Awareness Campaign: Launch a public awareness campaign to educate consumers on the risks of purchasing tickets from unauthorized sources and inform them about legal channels for purchasing and reselling tickets.

8. Monitoring and Evaluation

  • Ticket Sale Monitoring: Government bodies or designated authorities will monitor ticket sales for high-demand events to identify trends related to illegal reselling or bot use.
  • Regular Reporting: Event organizers and ticket platforms must provide annual reports to the government on their anti-scalping efforts, including the number of suspicious transactions flagged, actions taken, and penalties imposed.
  • Feedback Mechanism: A dedicated body or department will be established to handle complaints from consumers regarding illegal ticket reselling and bot activity.

9. Conclusion

This policy aims to ensure fair access to tickets, protect consumers from being exploited by scalpers, and maintain the integrity of ticket sales for public events. By working with event organizers, ticketing platforms, and law enforcement, the government seeks to eliminate the harmful effects of illegal ticket reselling and create a fairer and more transparent ticket marketplace for all.


Possible Implementation Considerations

  • Legal Framework: The policy would require amendments or introductions of new laws, particularly in areas related to digital fraud, consumer protection, and e-commerce regulations.
  • Technology Infrastructure: Governments may need to fund or support the development of advanced software solutions to monitor and track bot activity and reselling practices.
  • Industry Cooperation: Cooperation between governments, ticket vendors, and event organizers is essential for enforcing this policy effectively.