PROVIDENCE – R.I. Attorney General Peter F. Neronha announced the state reached settlements with three online ticket sellers this week, who were found to have listed or sold inadequately disclosed speculative tickets.
Neronha said speculative tickets to the musical “Hamilton,” which will be performed at the Providence Performing Arts Center, were sold for an average of $479 per ticket, despite tickets selling for an average of $145.
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Inadequately identified speculative tickets are tickets that have been listed for sale but have not been purchased by the seller, and that fact has not been disclosed to the buyer. Neronha said the practice artificially inflates ticket values and violates Rhode Island consumer protection laws.
Neronha said more than 4,000 speculative tickets were offered online for the Providence run of “Hamilton,” which resulted in sales of at least $214,000.
“Deceptive practices in the ticket resale market – like speculative ticket sales – confuse and rip off consumers, often inflating prices and not delivering what was paid for,” said Neronha.
The agreements reached by the attorney general with ticket sellers Venue Kings Ticket Brokers Inc., based in Vancouver, Canada, Front Row Tickets Inc., based in Tarpon Springs, Fla., and National Tixx LLC, based in Burbank, Calif., prohibit the future sale of inadequately disclosed speculative tickets by the companies and subject the companies to significant civil penalties if they are found to have made such a sale.
Neronha said the sellers’ ability to legitimately sell through online platforms would also be at risk if they unlawfully advertise a speculative ticket. The platforms that worked with the AG offered full refunds to customers that purchased inadequately identified speculative tickets, removed such listings and sanctioned ticket sellers that listed or sold the prohibited speculative tickets.
As part of its investigation, the AG’s office worked with ticket platforms, including Ticketmaster and StubHub, both of which prohibit the sale of speculative tickets.
“We are not just talking about the theater. We are seeing this practice with basketball games, concerts, and more. Ensuring fair conduct in this economic market is important because it is a gateway to performing arts, cultural events, and professional and college sports, all of which matter greatly to our state,” Neronha said. “My office will continue to monitor future conduct and pursue legal action when necessary to protect Rhode Island consumers.”
