Ticket Resales Regulated in the US? State of California Proposes 10% Cap on Resale Value

The State of California has launched a bold legislative offensive against ticket scalping. On February 5, 2026, Assemblymember Matt Haney (D-San Francisco) introduced AB 1720, better known as the California Fans First Act. The bill proposes a strict legal ceiling on the secondary market, capping ticket resales for concerts, theater, and comedy at no more than 10% above the original face value. The initiative aims to collapse the "arbitrage-first" model that has transformed concert tickets into volatile commodities.

This legislative surge arrives amidst a peak in industry frustration. For instance, the 2026 Grammy season was marked by Best New Artist winner Olivia Dean's speech, who criticized the "unchecked greed" of secondary platforms that saw tickets for her upcoming tour spike by as much as 1300% within minutes of release.

Two Acts - A Unified Front Against Speculation

The Fans First Act does not act in isolation. It is strategically paired with AB 1349, a secondary piece of legislation aimed at eradicating "speculative ticketing." This deceptive practice involves brokers listing seats they do not yet possess, creating a false sense of scarcity that drives prices into the thousands. By mandating a 10% price cap (AB 1720) and outlawing phantom listings (AB 1349), California is removing the profit margins that fund the automated "bot armies" currently dominating the ticket-buying queue.

Support for the measure has been swift from the artistic community. Ron Gubitz of the Music Artists Coalition (MAC) and leadership from the National Independent Venue Association (NIVA) have praised the bill for protecting the "lifecycle" of live music. They argue that when fans are gouged by resellers, they have less to spend on artist merchandise and local venue concessions—the financial pillars that keep independent stages operational. Under the new guidelines, a fan can still recover their costs plus a small buffer for platform fees, but the exploitative $1,000 markup on an $80 ticket would become a legal impossibility in the state.