StubHub has reportedly spent millions of dollars in an effort to stop a bill that would cap ticket resale prices.
According to state filings seen by The Hollywood Reporter, the secondary ticketing company reported nearly $6.2million in lobbying expenses in California between April and June.
It comes as lawmakers are considering the California Fans First Act, which would prevent tickets to eligible live entertainment events from being resold for more than 10 per cent more than their original price. It would also cap fees imposed by retail marketplaces and require sellers to disclose the original ticket price.
The proposal only applies to independent venues with capacities of 3000 people or fewer and has been passed by the California Assembly, and now is being considered by the state Senate.
In a statement to The Hollywood Reporter, StubHub have said they provide fans with a secure, verified marketplace and the flexibility to buy tickets after the original sale, adding: “We believe that more choice, flexibility and access put fans first.”
The bill is backed by the Music Artists Coalition and the National Independent Venue Association, and it has also been backed by Live Nation Entertainment, which owns Ticketmaster.
Opponents include StubHub and SeatGeek, who argue that restricting only the secondary market would leave prices high and allow for dynamic pricing and fees.
Meanwhile in the UK, the government announced plans last November to ban the resale of live event tickets above their original cost, as well as limits of platform fees and potential fines of up to 10 per cent of a company’s global turnover.
However, the plans have not yet become law. Ahead of May’s King’s Speech, artists and music industry groups warned against a U-turn, and the measure ultimately appeared only as a draft bill, prompting disappointment from the music industry.
Elsewhere, an investigation in July found that 72 per cent of StubHub’s arena listings came from just three bulk sellers, while a month earlier, the Competition and Markets Authority ordered StubHub UK to play a £900,000 fine and refund more than 50,000 customers after finding that mandatory fees had not been displayed upfront.