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Council approves first reading of Resale Act amendment, restores 10% cap and targets surveillance pricing
Summary
The Council approved on first reading an amendment to the Resale (Restricting Egregious Scalping) Act that restores a 10% cap on secondary market markups, permits a platform/service fee up to 10% (creating a possible combined cap up to 20%), narrows mayoral rulemaking to platform fees, sets a 50‑ticket threshold for business registration, and bans surveillance‑based price discrimination.
The Council unanimously approved on first reading an amendment to the Resale Act that aims to curb predatory ticket scalping and platform pricing practices.
Councilmember Allen, one of the amendment sponsors, framed the measure as restoring a 10% cap on resale price increases and requiring greater transparency. He said the amendment also requires secondary‑market resellers to obtain a license from the Department of Licensing and Consumer Protection (DLCP) and post a $25,000 surety bond if operating as a business. “If you're in the business of scooping up and reselling tickets from the box office, 1st off, please stop,” Allen said in a floor statement outlining the harms of large automated resellers.
Sponsors clarified mechanics in floor Q&A: the bill sets a 10% cap on resale above the initial ticket price and permits an additional platform/service fee up to 10% of the original ticket price; together those elements can result in a combined cap up to 20% of the original price but the total must encompass all fees (venue, seller, platform). The amendment narrows rulemaking authority to platform fees rather than venue fees and explicitly prohibits surveillance‑based price discrimination that tailors prices to consumers using mined data. The print also sets a reporting and registration threshold: sellers that list more than 50 tickets in a year must register with DLCP and comply with bonding and consumer protections; smaller personal transfers remain permitted but are subject to the cap.
Members asked about enforcement and platform cooperation. Sponsors said enforcement will rely on a combination of DLCP staffing, platform data sharing, and consumer reporting; they also signaled further work between first and second reading to clarify potential primary market consequences and venue fee impacts. The Council approved the amendment and the bill as amended on first reading; sponsors expect to refine rule language and enforcement mechanisms before second reading.
