State Senate investigation into live events ticketing industry cites major players, including Barclays Center
A 4/16/20 press release from the New York State Senate, Skoufis Announces Investigation into Live Event Ticketing Industry, Sends Letter to AG:
Senator James Skoufis (D-Hudson Valley), Chair of the Senate Investigations and Government Operations Committee, announced the committee launched an investigation into live event ticketing practices earlier this year, an effort that has taken on a new urgency in light of the Coronavirus pandemic. Skoufis additionally sent the attached letter to Attorney General Letitia James seeking a formal inquiry into alleged impropriety by Ticketmaster which suddenly changed their reimbursement policy amidst the public health emergency.More than 20 primary and secondary ticket marketplaces that have received document requests from Skoufis' investigative team, in anticipation of a public hearing--previously scheduled for April but to be rescheduled. They include Barclays Center & Brooklyn Nets, StubHub, Madison Square Garden & the New York Knicks, the New York Yankees, and Vivid Seats, among others.
Questionable practices and an interest in streamlining a convoluted, user-unfriendly system led Skoufis to launch the investigation earlier this year. On March 5, 2020, the Investigations and Government Operations Committee sent document requests to several ticketing industry stakeholders seeking information on their respective policies and practices.
As the Coronavirus pandemic has halted the operations of many businesses across the world including the live event industry, thousands of concerts, shows, and sporting events have been cancelled or postponed; this has led to a justifiable increase in refund requests from ticket holders. Disturbingly, some actors in the ticketing industry have advanced abusive practices. One such example, which is the subject of Skoufis' letter to the Attorney General, is Ticketmaster which abruptly changed its reimbursement policy amidst the pandemic. Previously, reimbursements were offered if an event was "postponed, rescheduled or canceled" whereas, after the sudden change, refunds are now only offered if an event is canceled; if an event is indefinitely postponed, as has often been the case during the pandemic, concerns are mounting that reimbursements will not be issued.
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