Lexi Webster
Ticket scalping is a common practice in Australia, where people buy tickets for an event and then resell them at inflated prices. While this practice is not illegal in the country, it is considered unethical as it exploits genuine fans and limits access to reasonably priced tickets. In recent years, there have been efforts to eradicate this business, with new laws being introduced in some states to protect consumers from ticket scalping. However, there is still a lack of consistent legislation across Australia, and the rapid growth of the resale industry has led to increased issues with ticket scalping.
| Characteristics | Values |
|---|---|
| Ticket reselling legality | Not illegal in most states, but regulated in New South Wales, Queensland, Victoria, and South Australia |
| Maximum resale price | 110% of the original ticket price in NSW; 110% including transaction costs in QLD; 10% above the original price in SA |
| Penalties for non-compliance | Fines of up to $110,000 for corporations and $22,000 for individuals in NSW and SA; NSW Fair Trading can issue additional fines of $550 for individuals and $1100 for corporations |
| Organizer's right to cancel | Organizers can cancel tickets resold in violation of scalping laws in NSW and SA; organizers in Victoria can cancel for declared major events |
| Advertisement requirements | Must include original cost, seat/row/bay numbers, and asking price within the allowed resale price range; prohibited advertisements must be reported |
| Refunds | Official ticketing agencies and organizers will refund the first purchaser if the event is canceled; resellers may offer refunds but cannot provide service through the box office |
| Authorized sellers | Canberra Ticketing is the authorized seller for events on its website, with QTIX as the ticketing agent |
| Buying from resellers | Buyers are not guaranteed entry and may not receive refunds from the original supplier; buyers should check the official seller and purchase directly to guarantee entry |
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What You'll Learn
Ticket scalping laws in New South Wales
Ticket scalping, or reselling tickets, is illegal in New South Wales (NSW) if done for profit. The NSW government introduced laws targeting ticket scalping on 1 June 2018 to protect consumers from ticket scalpers. These laws make it an offence to resell a ticket for more than 10% of the original price, including transaction costs such as booking fees and delivery charges. The laws apply to all NSW venues and tickets can be resold any number of times as long as the price cap is adhered to.
Any advertisements for reselling tickets must include the original cost of the ticket, the seat details, and an asking price below the mandated cap. Ads that do not meet these requirements are prohibited, and it is also an offence for publication owners to publish ticket resale ads that breach these laws. If a ticket is sold above the 10% cap, the event organiser may cancel the ticket and refuse entry.
Maximum penalties for breaching ticket scalping laws in NSW are $110,000 for corporations and $22,000 for individuals. The NSW Fair Trading can also issue fines of $550 for individuals and $1100 for corporations for any offence under the laws. It is important to note that the original ticket supplier is not legally bound to provide a refund to the buyer in the case of ticket resale, as the sale contract is with the reseller.
Additionally, the resale of tickets is prohibited outside certain venues, such as the Sydney Cricket Ground and Sydney Olympic Park. If you win a ticket and did not pay for it, it is illegal to sell it for any amount of money according to NSW legislation. These laws aim to create a level playing field for consumers, allowing genuine fans to buy tickets without inflated resale prices.
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Victoria's Major Events Act 2009
In Australia, ticket reselling laws vary from state to state. While some states have introduced legislation to address the issue of ticket scalping, there are still grey areas that allow scalpers and sites like Viagogo to sell tickets in bulk at inflated prices.
In Victoria, the Major Events Act 2009 was enacted to protect consumers from ticket scalping and ensure fair ticket pricing for major events. The Act gives the Minister for Tourism, Sport, and Major Events the authority to declare specific events as protected under the legislation. When an event is declared protected, it becomes an offence to resell or advertise tickets for more than 10% above the face value of the ticket. This legislation covers various events, including cultural and sporting occasions.
The Major Events Act 2009 also includes provisions for crowd management during these events. It outlines offences related to possessing prohibited items, such as lit distress signals or fireworks, and the consumption of alcohol in event venues and areas. Additionally, the Act addresses the unauthorised use of protected event logos, images, and references, as well as broadcasting and recording restrictions.
While the Major Events Act 2009 in Victoria aims to curb ticket scalping, it only applies to specific declared events. Other states in Australia, such as New South Wales and South Australia, have implemented more comprehensive laws that broadly address ticket reselling. These laws enforce the 10% rule, with significant penalties for non-compliance, and give event organisers the right to cancel tickets that breach scalping laws.
It is important to note that despite these laws, buying a resold ticket still carries risks, and consumers should be aware of the potential for higher prices and limited refund options. Additionally, the original ticket supplier is not obligated to provide refunds to buyers who purchased through resellers. Overall, while efforts are being made to eradicate ticket scalping in Australia, there is still room for improvement to protect consumers and ensure fair practices in the ticket resale market.
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Queensland's 10% rule
In Queensland, the 10% rule is advised in cases of ticket resales, although there is no legislation to enforce it. This rule covers specific venues operated by Stadiums Queensland, such as the Brisbane Entertainment Centre. The 10% margin enables people who are unable to attend an event to recoup the ticket price and any costs associated with the ticket resale.
Ticket scalping laws have been in effect for events at Stadiums Queensland venues since 8 December 2006. Ticket holders are allowed to resell their tickets, provided the cost of the ticket is no more than 10% above the original ticket price. The Major Sports Facilities Act 2001 does not restrict people's ability to resell tickets where they have a genuine need to do so and where the transfer of the ticket is allowable under the ticketing conditions.
The Act contains penalties for reselling and purchasing tickets to events at Stadiums Queensland facilities at a price greater than 10% above the original ticket price. An exemption is provided for non-profit organisations to lawfully resell tickets above the 10% margin for fundraising purposes.
Ticket resellers must follow the same laws as other businesses, as well as the specific rules set out in the Electronic Ticket Resale Service Information Standard 2022.
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Lack of regulation in Canberra
The lack of regulation in Canberra regarding ticket reselling has resulted in a thriving resale industry, with limited legislation to deter the practice. While some individuals resell tickets because they can no longer attend an event, others engage in the deliberate practice of scalping, where tickets are purchased with the express intention of reselling them at a profit. This has led to a situation where tickets are often sold for significantly higher prices than their original cost, and consumers are left confused and exploited.
Canberra Ticketing, the authorised ticket seller for events in the region, has recognised the issue and discourages patrons from reselling tickets. They emphasise that the only way to guarantee entry to an event is to purchase directly from them or an agreed provider, as they are not obligated to honour tickets bought from unauthorised resellers. However, beyond this advisory role, there is little in the way of enforceable laws to prevent scalping.
The existing legislation in Canberra is limited in scope and lacks consistent enforcement. The Major Events Act 2009, which aims to protect consumers from ticket scalping, only covers a select few events, leaving a large grey area for scalpers to exploit. While states like New South Wales and South Australia have introduced comprehensive laws targeting ticket scalping, with substantial penalties for non-compliance, Canberra has yet to implement similar measures.
The absence of regulation has led to a situation where resellers operate with impunity, often failing to provide essential information such as the original price, seat location, or restrictions associated with the tickets. This lack of transparency not only disadvantages consumers but also undermines the integrity of the ticketing industry. The rapid growth of the resale industry in Australia highlights the urgent need for stricter legislation and more effective policing of existing laws to protect consumers and ensure fair pricing practices.
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Resale risks for buyers
Reselling tickets for profit, also known as ticket scalping or ticket touting, is illegal in Australia. However, this does not mean that buyers are exempt from risks when purchasing tickets from resellers. Here are some key risks that buyers should be aware of:
Financial Loss: In New South Wales, South Australia, and Western Australia, it is illegal to resell tickets for more than 10% of their face value. However, buyers may still end up paying much more than the original price if they are not careful. While there are penalties for non-compliance, buyers might not always receive a refund, especially if they are unaware of the original ticket price or if the reseller is based in a different state or country.
Scams and Counterfeit Tickets: Scam artists often take advantage of high-demand events to sell fake or counterfeit tickets to unsuspecting buyers. These tickets may be advertised as genuine, but buyers may only discover their inauthenticity upon arrival at the event venue, resulting in financial loss and disappointment.
Previously Used Tickets: A common practice among scalpers is to sell tickets that have already been scanned at the venue gate. Entry is typically allowed only on the first scan of a ticket, so buyers who purchase previously used tickets may find themselves unable to enter the event, despite holding seemingly valid tickets.
Limited Recourse: When buying from a reseller, buyers should be aware that their contract is with the reseller, not the original ticket provider. This means that in cases of event cancellation or other issues, refunds offered by official ticketing agencies or event organizers will typically be given to the first purchaser, not the buyer from the reseller. While some resale websites offer protection for event cancellations, it is crucial for buyers to carefully check the terms and conditions before purchasing.
Bots and Unfair Advantage: In recent years, the use of automated bots to purchase tickets in bulk has become a concern. Scalpers use these bots to gain an unfair advantage and snap up large quantities of tickets as soon as they become available, only to resell them at a higher price. This practice reduces the chances of genuine buyers obtaining tickets at the original price and contributes to the thriving ticket resale market.
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Frequently asked questions
The practice of reselling tickets is not illegal in Australia, but there are laws in place to protect consumers from unfair practices. These laws vary from state to state, with New South Wales and South Australia having the most comprehensive legislation.
If you buy a ticket from a reseller and find out that you have been charged more than 110% of the original ticket price, you may not get a refund for the difference. Additionally, if you buy a ticket that has already been resold multiple times, you may be denied entry to the event as only the first ticket holder will be granted access.
The maximum penalties for breaching ticket scalping laws in NSW are $110,000 for corporations and $22,000 for individuals. NSW Fair Trading can also issue fines of $550 for individuals and $1100 for corporations for any offence under the laws, including one-off breaches.
