Flint Theater addresses ticket resale fraud costing thousands in chargebacks

In a recent meeting of the Vermont House Commerce Committee, significant concerns were raised regarding the impact of ticket resale practices on local arts organizations. The discussions highlighted the challenges faced by venues like the Flynn Theater, which are grappling with fraudulent ticket sales and the negative effects of resale sites on their operations.

One of the key points addressed was the alarming statistic that approximately 40% of tickets sold are believed to be purchased for resale. This trend has prompted the Flynn to implement a process for identifying suspicious purchases. When potential resale activity is detected, the theater reaches out to the buyer, allowing them two weeks to clarify their intentions. If no response is received, the tickets are invalidated, and the buyer is refunded minus fees—a recent change aimed at recouping some costs.

Despite these measures, the theater continues to face challenges. Resellers often operate from overseas, using VPNs to mask their locations, which complicates enforcement efforts. A recent presale for comedian Paula Poundstone's show exemplified this issue, as tickets were quickly listed on resale sites at inflated prices, creating a false sense of demand. The Flynn still had ample tickets available, illustrating the deceptive practices employed by resellers.

The meeting also shed light on the broader implications of these practices. Resale sites frequently allow individuals to sell the same tickets multiple times, leading to confusion and frustration for genuine ticket buyers. Instances were shared where patrons arrived at the theater only to find their tickets had already been checked in, resulting in significant operational disruptions.

Financially, the impact on local arts organizations is substantial. The Flynn reported estimated losses of $18,000 to $30,000 in chargeback fees due to fraudulent transactions, alongside an additional $40,000 in labor costs to manage these issues. Other venues, like the Paramount Theater, echoed these concerns, reporting similar financial strains.

The discussions underscored the urgent need for legislative action to address the challenges posed by ticket resale practices. As local arts organizations strive to fulfill their missions of accessibility and community engagement, the ongoing battle against fraudulent sales and deceptive resale practices remains a pressing concern. The committee's acknowledgment of these issues signals a potential shift towards more robust regulations aimed at protecting both consumers and the integrity of local arts venues.