Washington, D.C. passed one of the toughest ticket resale laws in the US, and the resale platforms are now trying to stop it before it ever kicks in. On October 14, SeatGeek, Vivid Seats, TickPick, and Gametime sued the District of Columbia in federal court, alongside lead plaintiff the Ticket Policy Forum, a trade association of online ticket marketplaces. Their target is the RESALE Act, short for Restricting Egregious Scalping Against Live Entertainment, which is set to apply from January 1, 2027.
What the RESALE Act actually does
A ticket to a concert, theater show, comedy night, or other covered live event in D.C. cannot be resold for more than 10% above what the original buyer paid, including fees and taxes. Resale marketplaces can then charge a service fee of up to 10% of that same original price. So a ticket bought for $100 all-in could be resold for at most $110, with the marketplace adding no more than $10 on top. Platforms must also show the original price on every listing.
Most sporting events are exempt, and so are movie tickets. Primary ticket sales are not capped at all. Beyond the price limits, the law includes all-in pricing, refund protections, restrictions on speculative listings, anti-bot requirements, and licensing and bond rules for higher-volume resellers. Mayor Muriel Bowser signed the bill on August 10, and it became D.C. Law 26-181 on September 25 after a congressional review period expired.
The resellers' case
The complaint, filed in the US District Court for the District of Columbia, argues, among other claims, that the law violates the dormant Commerce Clause, the Due Process Clause, and the First Amendment. It also says the law breaches the Home Rule Act, which limits the D.C. Council to legislation that applies within the District. According to the filing, fewer than 1% of covered transactions on the plaintiffs' marketplaces last year involved both a buyer and a seller located in D.C. Because the law has no severability clause, the plaintiffs want the entire act declared invalid.
The fee cap gets a very concrete example: "When a $40 concert ticket resells for $44, the most the Act allows, the Act lets Plaintiffs charge $4. But Plaintiffs incur more in costs than that to complete the transaction." On the disclosure rule, the marketplaces argue they took no part in the original sale and usually have no way to verify what the first buyer paid.
"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 plaintiffs have asked for a decision on their preliminary injunction by December 10, which leaves time for an appeal.
The other side of the fight
Councilmember Charles Allen, who introduced the bill, was not impressed. "I introduced this law because companies like the ones behind this lawsuit are gouging DC residents using technology to scoop up as many live music tickets as they can and resell them at inflated prices," he told TicketNews. Audrey Fix Schaefer, president of the NIVA board and communications director for promoter I.M.P., said I.M.P. tracked $13.9 million worth of resale listings across more than 111,000 tickets for its venues in September, with 92% listed above face value. Those are asking prices, not completed sales.
Why it matters beyond D.C.
Resale price caps are already law in Maine and Vermont, Massachusetts Governor Maura Healey has proposed one, and the Ticket Policy Forum says bills similar to D.C.'s were proposed in 15 other states this year.
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Should resale prices be capped at 10% above face value, or does that just push fans toward riskier sellers?
