Posted on 07/06/2015 2:39:20 PM PDT by MichCapCon
Under a law that dates back to 1931 ticket scalping is banned in Michigan. But that could soon change. The House has passed legislation (House Bill 4015) to repeal the 84-year-old statute that makes it a crime to sell a ticket to sporting events, concerts, plays and other attractions for more than its face value. The bill is currently awaiting action in the Senate Commerce Committee.
Supporters of the measure argue that once a ticket has been purchased it becomes the property of the purchaser and government has no business interfering with an individual’s right to sell his or her property for whatever price the market will bear. They admit that above-face-value resales are possible, but only in highly restrictive situations.
“House Bill 4015 would restore free-market principles to the ticket resale market in Michigan and bring Michigan citizens out of back alleys to partake in legal economic transactions that will be subject to proper consumer protections,” said Dan Horning, a former member of the University of Michigan Board of Regents and a founding member of the Michigan Ticket Fairness Coalition. "The bill is also a clear example of what was meant when Gov. Snyder called for the elimination of outdated and redundant laws when talking about corrections reform. Removing our state’s outdated ban on ticket resale is a perfect example of a frivolous law that criminalizes basic economic behavior."
The bill is sponsored by Rep. Tim Kelly, R-Saginaw, who introduced House Bill 5108 last session, which was the same legislation. On March 25, the House passed House Bill 4015 on a 70-40 vote. It has been in the Senate Commerce Committee about two and a half months. Sen. Wayne Schmidt, R-Traverse City, is chairman of the committee.
Among those opposing the bill are entities that offer various forms of entertainment, such as Michigan State University, the Detroit Lions, the Detroit Pistons, Fisher Theatre, DeVos Performance Hall, Van Andel Arena, Ford Field, and Soaring Eagle Casino.
“Michigan State University and partners feel the bill will only prohibit Michigan’s law enforcement and the live entertainment industry from protecting consumers against ticket scalping,” MSU spokesman Jason Cody said. “If enacted, the bill would cause venues to lose their ability to ensure tickets go to fans and patrons, rather than to scalpers and online platforms, who buy tickets for the sole purpose of reselling them at enormous profit.”
“Additionally, the bill would make it even more difficult to make sure patrons have legitimate tickets and not forgeries,” Cody added. “Patrons cheated by brokers are less likely to purchase tickets again.”
Frank Cloutier, public relations director for the Saginaw Indian Chippewa Tribe, which operates the Soaring Eagle Casino, said House Bill 4015 would be particularly problematic for places of business like casinos.
“There is a brick-and-mortar element we feel is being ignored by supporters of this bill,” Cloutier said. “We negotiate what price we’ll pay for our acts at our venue and what we negotiate determines our ticket prices. This legislation would let someone else purchase multiple tickets to resell them at higher prices. That would allow an uncontrollable third party to control our house ... and they want us to honor their actions. That’s just ridiculous, especially for us. The prices we charge for our entertainment are set to attract customers for our casino.”
Groups supporting the legislation include: Michigan Ticket Fairness, National Association of Ticket Brokers, Michigan Citizen Action, Americans for Prosperity-Michigan, American Conservative Union, MSU College Republicans, Stub Hub, Sports Fan Coalition, the Institute for Liberty, and American Consumer Institute Center for Citizen Research.
Why should government be involved at all.
I agree with ending the ban. A ticket is a commodity or an investment just like any other. Why not let the free market reign?
If the prices are too high nobody will buy the tickets.
...why not let the free market reign?...
Simple. In general, once anything Is placed under government control, it is loathe to let the control go.
The government should have their budget cut in half and the empire builders sent home.
better question- should we the people set limits on what government can spend?
Ticker resellers who buy large blocks of tickets with the sole intent of jacking up the prices are the problem, but I see their lobbyists have done their job well.
Have concert promoters, sporting events, etc put the original tickets up for bid on the internet. You bid for the seats you want against everyone else and cut out the scalper.
The issuer of the ticket should have the right to forbid the scalping. But if he doesn’t forbid it, then neither should the government.
The solution is simple then. The venue owner sets a limit on the number of tickets that can be sold to any individual.
No government needed.
L
Ultimately the government is needed in order to enforce honesty one way or another, but that is admittedly difficult to carry out in practice when the government itself is dishonest.
One is either honest or dishonest. And no amount of government coercion can change that. All government can do is punish dishonesty after the fact.
L
On the only scale that matters in eternity, everybody is dishonest.
On a relative scale, a government can reinforce the idea of honesty in various ways, punishing the lack of it being only one such way.
Name 3 other specific ways, please.
Thanks.
L
Why should I? It is truth. Research it yourself.
RE: “Gov’t should not be involved”
Sigh - if only all men behaved decently...
Scalper ticket resellers add No value to event venues.
I have seen complete 40,000 seat civic centers sell out of tickets within 5 minutes of going on sale.
Bass turd resellers ticket squatters buy up huge chunks of seats, and then, without adding any value for the performer, event facility, or ticket buying public, jack up the price by 20 - 100%.
They cause scarcity and drive prices higher.
Anyone who defends scalpers, ought to ask themselves if it’s okay to extend scalping to buying up the contents of a store and then setting up shop to mark it up more for sale. No value added. Just a dirty rotten scarcity racket.
The same thing is happening to domain names.
Bass turd domain name squatters buy domain names for $2, then charge $800+ to purchase a domain name that doesn’t even have significant brand catch word value.
Confession to people I respect and trust here -
I cannot fail to acknowledge the benefit I receive from gov’t regulation in the name of consumer protection.
And if I may state: neither can anyone else here.
Scales, weights and measurements protect you from getting ripped off at the gas pump and grocery store.
Uniform commercial code / fair credit laws protect you from fraudulent contracts.
USDA and FDA “ideally” add value and protect us from tainted food, and harmful snake oil cures.
Fed & State labor laws may encumber unfettered production potential, but it is good to have labor boundaries for holidays, weekends, overtime compensation, and age discrimination.
I think its a delicate matter of equilibrium between free market forces and minimal counter balance consequences preventing those who adversely affect health and well being through fraud or predatory practices.
That’s my non hypocritical current point of view.
You made the assertion, therefore the burden of proof lies upon you.
(The NCAA did require an exception for the March Madness Tournament in Indy since we host it pretty often.)
Involving government in price-fixing is like involving cookie monster in your Girl Scout cookie sales. It can never end well.
If scalper buys all the $40 tickets and jacks up the price and nobody wants them. Scalper is out of money.
I did not say that venues and private outfits that sell the tickets can’t limit mass purchases. They don’t need a law for that.
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