Photo Credit: Mayer Tawfik
The Ticket Policy Forum and its online ticket marketplace members have sued the District of Columbia to block the RESALE Act from taking effect on January 1.
The Ticket Policy Forum (TPF) and its members, which include SeatGeek, Vivid Seats, Gametime, and TickPick, have filed a lawsuit in the U.S. District Court for the District of Columbia to block enforcement of the District’s RESALE Act, set to take effect on January 1, 2027. The companies are seeking a preliminary injunction, arguing the law violates the dormant Commerce Clause, the Due Process Clause, the First Amendment, and the Home Rule Act, and they will suffer lasting damage if it goes into effect.
“Under the guise of affordability, the District enacted a law that will drive ticket sales into the shadows, subjecting fans to greater risks from street-side scams and increased fraud,” said Brian Berry, Executive Director of the Ticket Policy Forum. “The legally flawed Act would apply to sales largely outside the District and set arbitrary resale-only price caps tied to the original cost of a ticket, information companies in the secondary market do not have and cannot disclose because they were not part of these initial transactions.”
“The law notably exempts primary ticket sales, like Ticketmaster venue box office ticketing, leaving them free to raise prices and undermine the stated purpose of the law while making it harder for our members to compete in a market dominated by an illegal monopoly. We are asking the court to block enforcement before the law—similar to bills proposed in 15 other states this year—causes significant, long-term damage,” says the Ticket Policy Forum.
Online ticket resale marketplaces play a critical role in matching the supply of tickets with demand. For instance, fans who cannot attend an event because they fall ill or experience a change in their plans can sell their tickets in these online marketplaces and gain immediate access to a broad market at market-based prices below and above their original price. Similarly, fans who miss out on the initial sale may be able to secure tickets to an event they otherwise would not have access to.
Federal rules established by the Federal Trade Commission (FTC) in 2025 require full disclosure of the total prices of these tickets on resale platforms. In turn, the TPF argues that the companies provide valuable services and guarantees, including secure payment processing, transfer of the ticket, remittance of the payment, fraud protection, and customer support—services that were never available for tickets sold outside of venues or through ads, social media posts, or other means.
The RESALE Act caps the resale price of a concert, theater, or comedy ticket (while most sports events are exempt) at 10% of that same initial price. Meanwhile, according to Ticketmaster’s internal documents cited by the FTC, fees charged by Ticketmaster average between 24% and 44% of the total price fans pay. The service fee cap for resale marketplaces is a particular problem for lower-priced tickets, as $4 in fees on a $40 ticket does not cover the cost of the services provided. The Act also requires online marketplaces to display the ticket’s original purchase price on every listing.
The TPF’s lawsuit alleges three significant constitutional issues with the law, each of which warrants a preliminary injunction on its own, they argue. The law regulates sales outside D.C., regardless of where the buyer, seller, and marketplace are located. As a result, the TPF says the law violates the dormant Commerce Clause and the Home Rule Act, which bar the District from regulating commerce beyond its borders.
The caps are also reportedly arbitrary, confiscatory, and violate the Due Process Clause. Legal precedents prevent a government from setting rates so low that businesses cannot be compensated for their services or earn a reasonable return on their investment. Additionally, the caps are based on initial sales prices that the online resale marketplaces cannot confirm without data provided directly from the original seller, a fact that will raise substantial compliance challenges with both the price cap and the disclosure requirement.
Further, resale marketplaces do not know the original price because most tickets are digital and don’t have price information tied to them and don’t know if the price changed through dynamic pricing by the venue box office or its primary ticketing agent.
The Act also compels speech that marketplaces cannot verify. The original price disclosure forces marketplaces to publish the initial price paid for a ticket in a transaction they were not part of. The suit argues this violates the First Amendment and notes that the Council exempted primary ticket sellers from the law and never considered requiring ticket issuers, who know the price, to transmit it with the ticket.
The TPF and others are asking the court to rule before the Act takes effect in 2027 so they are not forced to rebuild national marketplaces to meet the requirements of one jurisdiction. If the law takes effect, plaintiffs will have to sell tickets at a loss or blacklist D.C. events and will suffer lasting damage with customers and partners alike alleges the trade group.
Leave a Reply