StubHub = Faced Confusion in Regulatory Environment &
Proved Marketplaces Can Be Regulators’ Allies
Source: “Lessons from a Scalper” by David Harrington, Kenyon College, Spring 2009.
“A Brief Overview on Ticket Scalping Laws, Secondary Ticket Markets, and the StubHub Effect,” Entertainment and Sports Lawyer, 11/12.
Original Intent of Anti-Scalping Laws (passed in 1920s) = Protect Consumers...
...the law ‘merely prohibits’ scalpers and ticket brokers from charging excessive prices and
thereby ‘end[s] the extortion’ of the public...
StubHub When Founded in 2000 = Faced Many Anti-Scalping Law Barriers...
>20 states prohibited some form of ticket resale...for example, Alabama / Massachusetts
require licenses...in Indiana, one couldn’t sell tickets to boxing matches...
StubHub in 2015 = Legal in Nearly All States & Has Helped Provide...
• Marketplace Liquidity = Can help prevent excessive pricing (‘extortion of public’)
• Trust & Safety / Transparency = Likes of ratings / feedback systems can help find /
remove bad actors
With passage of time (& collaboration), StubHub has helped regulators do
their jobs – effectively regulate what they had intended to regulate all along.