New Legislation Bans Hidden Fees and Strengthens Penalties Against Bot Networks

The concert tickets for your favorite artist just went on sale. You rush to the official website, only to find they’re already sold out within minutes. Hours later, those same tickets appear on resale sites for triple the original price. If this scenario sounds familiar, you’re not alone. But New York is fighting back with groundbreaking legislation that targets scalpers and caps hidden fees, offering hope to millions of frustrated fans across the state.

Governor Kathy Hochul signed legislation (S.9461/A.10500) targeting unfair, anti-consumer ticketing practices in the live event industry. This comprehensive bill represents the most significant reform to New York’s ticketing laws in decades, directly addressing the predatory practices that have made live entertainment increasingly inaccessible to ordinary consumers.

The Hidden Cost Crisis in Live Entertainment

The modern ticket-buying experience has become a minefield of unexpected charges. What starts as a $50 concert ticket often balloons to $75 or more by checkout, thanks to processing fees, convenience charges, and delivery costs that appear at the last moment. This practice, known as “drip pricing,” has become the industry standard, leaving consumers with little choice but to pay up or miss out entirely.

The bill will increase transparency for consumers purchasing tickets to live events by banning hidden fees. Under the new law, ticket sellers must display the total price upfront, eliminating the frustrating surprise costs that have plagued the industry for years.

What the New Law Requires

The legislation introduces several key consumer protections:

• All-in pricing must be displayed from the start of the purchase process
• The total price cannot change during checkout
• Delivery fees are prohibited for tickets printed at home or delivered electronically
• Sellers must clearly disclose the original face value of resold tickets

Taking Aim at Bot Networks and Scalper Operations

Perhaps even more significant than the fee transparency requirements are the law’s enhanced penalties for automated ticket purchasing. The Ticket Sales Act, amended in 2022, includes provisions targeting the use of automated bots to purchase large quantities of tickets, which often lead to artificial scarcity and inflated prices.

These “bot” operations work by using sophisticated software to purchase hundreds or thousands of tickets within seconds of their release, often faster than any human buyer could manage. The tickets are then resold at massive markups on secondary markets, creating artificial scarcity while pricing out regular fans.

Strengthened Penalties Send a Message

The bill also strengthens penalties against the use of automated ticket-buying “bot” software to sweep up massive amounts of tickets for resale at inflated prices. The increased civil fines represent a serious escalation in New York’s fight against these predatory practices.

The law also tackles another common abuse by prohibiting the resale of tickets that were originally distributed for free. This closes a loophole that allowed scalpers to profit from promotional tickets and giveaways intended to benefit fans and communities.

Industry Response and Implementation Challenges

While consumer advocates have praised the legislation, the ticketing industry’s response has been mixed. Some major platforms have begun implementing the required changes, while others have been slower to adapt.

New York passed legislation over the summer requiring ticket scalpers to disclose the original face value of tickets for customers, but most of the industry has violated the policy since it began. This ongoing resistance highlights the enforcement challenges that lie ahead.

The Enforcement Question

The effectiveness of any consumer protection law depends largely on enforcement. New York’s Department of State oversees ticket reseller licensing and has the authority to investigate violations and impose penalties. However, with thousands of online platforms and individual resellers operating across state lines, comprehensive enforcement remains a significant challenge.

A Model for National Reform

New York’s approach has caught attention from lawmakers and consumer advocates nationwide. As State Senator James Skoufis said, “New York is leading the way on reforms nationwide.” The Empire State’s legislation could serve as a template for similar laws in other jurisdictions.

The timing is particularly relevant given recent federal attention to the issue. President Donald Trump on Monday signed an executive order aimed at protecting fans from “exploitative ticket scalping” and reforming the U.S. live entertainment ticketing industry. This federal action, combined with state-level reforms like New York’s, suggests a growing bipartisan consensus that the current system needs fundamental changes.

Economic Impact on the Entertainment Industry

The legislation comes at a critical time for New York’s entertainment sector. “Live entertainment has long been a critical sector in our economy, and as consumers and the industry recover from the pandemic, it is important that we make the ticket-buying experience easier and more transparent,” Governor Hochul said.

New York’s position as a global entertainment hub means these reforms could have ripple effects far beyond state borders. Broadway theaters, Madison Square Garden, and countless music venues throughout the state collectively generate billions in economic activity annually. Making live entertainment more accessible could boost attendance and support the broader recovery of the entertainment ecosystem.

What This Means for Consumers

For everyday ticket buyers, the new law promises several immediate benefits. The elimination of hidden fees means the price you see is the price you pay, making it easier to budget for entertainment expenses and compare options across different platforms.

The enhanced penalties for bot operations may not eliminate scalping entirely, but they should reduce its scale and impact. With higher risks and costs for violators, some bad actors may exit the market or scale back their operations.

Long-term Market Changes

Beyond the immediate consumer benefits, the law may drive longer-term changes in how tickets are sold and distributed. Some venues and artists are already experimenting with alternative approaches, such as verified fan presales, mobile-only tickets, and dynamic pricing that adjusts based on demand.

These innovations, combined with stronger enforcement of anti-scalping measures, could gradually shift the balance of power back toward legitimate buyers and away from professional resellers.

The Road Ahead

While New York’s new law represents significant progress, challenges remain. The global nature of online ticket sales means that bad actors can often find ways to work around state-level regulations. Additionally, the definition of what constitutes “scalping” versus legitimate resale continues to evolve as technology advances.

Consumer education will also play a crucial role in the law’s success. Many buyers remain unaware of their rights under the new regulations or how to report violations when they encounter them.

Building on Success

Assemblymember Daniel J. O’Donnell said, “New York is the epicenter of the entertainment world, and making sure artists, performers, and venues can reach fans and sell tickets is essential to their success.” This sentiment captures the broader goal of the legislation: creating a fairer, more transparent marketplace that benefits everyone involved in live entertainment.

A Victory for Fair Play

New York’s comprehensive ticketing reform represents a significant victory for consumer rights and fair market practices. By banning hidden fees, strengthening penalties against bot operations, and requiring greater transparency from resellers, the state has taken meaningful steps toward restoring balance to the live entertainment marketplace.

The law’s success will ultimately depend on consistent enforcement and continued vigilance from both regulators and consumers. But for the first time in years, ticket buyers have reason for optimism. The next time you’re looking for concert or theater tickets, you might find the process a little less frustrating and a lot more fair.

As other states consider similar reforms and federal action continues to develop, New York’s leadership on this issue could help spark a nationwide transformation of how we buy and sell tickets to live events. For millions of entertainment fans, that change cannot come soon enough.

Take Action: If you encounter violations of New York’s ticketing laws, you can file a complaint with the New York State Department of State. Stay informed about your rights as a consumer, and support venues and artists that prioritize fair ticketing practices. Together, we can help ensure that live entertainment remains accessible to all New Yorkers.