New York adopts new ticket resale legislation
New York’s state assembly has passed a bill to protect consumers from what they have labelled ‘exploitative ticket reselling practices’. In an effort to promote transparent and fair ticket buying experiences for the public, several measures will be adopted, including a UK-style disclosure requirement for all secondary ticketing websites.
The legislation will address the ongoing practice of selling ‘speculative tickets‘ to consumers. Resellers often anticipate and sell tickets they have yet to actually acquire, on the basis that they will have access to them in the future. The practice has been condemned for confusing consumers and forcing primary ticket sellers to compete against secondary outlets. New changes will force resellers to disclose whether or not they have the ticket at the time of purchase and refund customers if they cannot deliver.
“These deceptive practices have become common practice and deny people access to live concerts and events. Everyone deserves a fair shot at fairly priced tickets,” says assembly speaker Carl Heastie.
The new bill follows in the footsteps of the UK market by also requiring websites to disclose their status as secondary ticketers. Since January 2018, stringent restrictions have been put in place for UK-based ticket resellers using Google AdWords.
“Everyone deserves a fair shot at fairly priced tickets.”
New York-based resellers will need to post a ‘clear and conspicuous’ notice stating they are a reseller and pointing out any fees and surcharges associated with tickets. There will also be a ban on misleading URLs which might trick consumers into thinking they are dealing with a primary seller.
There will also be a crack down on bot technology. New York has been at the forefront of the fight against touts using bots and since June 2016 the practice has been a criminal offence. Under new laws, any ticket seller that uses, controls or even owns ticket purchasing software could lose their licence and be banned from reselling for up to three years. The decision follows an investigation into ticket market malpractice by New York’s attorney general in 2016.
The adoption of these strict policies hopes to put an end to consumer exploitation. Around the world, governments are beginning to legislate against touts and resellers in an attempt to curb the power they have over fans and the wider industry. Governments like those in New South Wales and Hong Kong have both recently cracked down on secondary ticketing, with mixed reactions from resellers themselves. In response to tougher restrictions in the UK, ‘responsible’ touts formed the Fair Ticketing Alliance.
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AEG moves to dismiss suit by ‘free rider’ Soul’d Out
AEG has asked the US district court for Oregon to toss a competition lawsuit by Soul’d Out Productions, saying the Oregon promoter seeks to piggyback on the success of its Coachella festival by disputing the latter’s controversial ‘radius clause’.
Soul’d Out, which organises Portland’s Soul’d Out Music Festival, sued AEG in April on competition grounds, arguing Coachella’s radius clause – a contractual restriction that prevents acts on the festival’s bill from playing at “any other festival or themed event within a distance that extends over 1,300 miles” – amounts to anti-competitive behaviour on the part of organisers, and unfairly targets other, smaller festivals.
At the time, AEG suggested the lawsuit was frivolous, arguing that radius clauses are “an industry standard used by festival, concert and tour promoters designed to protect the integrity and exclusivity of their events”.
In its motion to dismiss, filed on Friday, AEG argued that Soul’d Out’s complaint alleges that Coachella intentionally interfered with its business by strong-arming its acts into accepting the clause – something that cannot be the case because, of the three acts Soul’d Out claims to have lost, two of the three had already agreed to play Coachella by the time they were approached by Soul’d Out.
Additionally, AEG argues, as the radius clause applies to almost every act playing Coachella, Soul’d Out cannot claim it was specifically targeted by the clause.
“Soul’d Out’s true gripe with the radius clause is that it prevents plaintiff from free riding on the popularity of Coachella
Soul’d Out 2018 (15,000-cap.) was headlined by De La Soul, Wyclef Jean and Erykah Badu. It is unclear which three acts were ‘lost’ to Coachella.
As spotted by Amplify, the documents also reveal that, contrary to the previously reported 1,300-mile figure, the radius clause actually extends to any festival in North America from 15 December to 1 May. (Coachella takes place in mid-April.) Coachella artists are also not permitted play any ‘hard ticket concerts’ in southern California – nor announce other festival appearances in California, Nevada, Oregon, Washington or Arizona (the 1,300-mile radius) – during that period.
Additionally, clause-bound acts are forbidden announce festival appearances in any of the other 45 US states until after the Coachella line-up is announced in January (with the exception of South by Southwest, EDM event Ultra Miami and AEG’s New Orleans Jazzfest).
Imploring judge Michael Mosman to dismiss, AEG’s lawyers, Justin Bernick of Hogan Lovells and Casey Nokes of Cable Huston, argue: “[Soul’d Out]’s true gripe with the radius clause is that it prevents plaintiff from free riding on the popularity of Coachella and the investment AEG has made in developing its artist line-up and ensuring those artists play at Coachella.
“It is more than reasonable for AEG to take steps to prevent this type of free riding from taking place.”
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Canadian creative industries launch ReadTheCode.ca
In March 2018, Canada’s creative industries launched an industry-wide code of conduct. The code was largely a response to the widespread bullying, harassment and discrimination allegations that were being made around the world in the wake of the #metoo movement. This week the industry launched ReadTheCode.ca, a supplementary website for industry members.
Users can find the code of conduct on the website in both French and English, as well as several other resources. Among these is an up-to-date list of all industry signatories. Since its launch in March, over 60 organisations have signed up to the code – with 36 new music industry partners to be announced soon.
Also promised for ReadTheCode.ca are updates from two committees currently working on industry wide improvement recommendations. The Education, Training and Awareness Committee is in the process of creating training programs to compliment the application of the code of conduct. It hopes to deliver lessons on crucial issues using methods like print campaigns, school partnerships and courses.
“I am happy to announce this new resource as a next step in our industry’s goal to combat harassment, discrimination, bullying and violence”
Similarly, the Reporting Committee is currently looking into creating safer and more effective reporting mechanisms. Much like the recently launched Mores.online service in the Netherlands, it hopes to provide a space where allegations can be reported without fear of judgement or retribution.
In a statement addressing the launch of the resource website, national president of the Alliance of Canadian Cinema, Television and Radio Artists (ACTRA) David Sparrow says: “I am happy to announce this new resource as a next step in our industry’s goal to combat harassment, discrimination, bullying and violence within Canada’s creative sector.
“I am also pleased to welcome 36 live and recorded music organisations that will soon become signatory to the Code of Conduct to ensure a healthy culture with zero tolerance to all forms of harassment within Canada’s music community.”
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Dutch harassment reporting service launches
With the impact of last year’s #metoo movement still being felt throughout the entertainment industries, the Netherlands’ cultural sector has this week launched Mores.online. An independent service, Mores will act as a reporting point for harassment and inappropriate behaviour in the performing arts, television and film sectors.
The idea behind the new initiative is to first provide workers with an adequate place to report inappropriate behaviour, and then to support individuals to act accordingly. According to the service, each case is tailored to the individual. They say: “Not only can we listen, but also discuss with you what you can expect when you choose a certain solution direction.”
Mores aims to provide several avenues of support for victims. Headed by certified confidants Jeanette Jager and Freek Walther, they list support in mediation, formal complaint writing and legal complaints as some of the ways they can help users. As well as practical help, Mores has also published a set of regulations for appropriate behaviour at work.
“We are committed to a healthy and safe working environment, where everyone can find a place to report abuses with the certainty of being heard without fear”
The initiative has received widespread support from across the entertainment industries in the Netherlands. Among others, it is backed by promoters’ association Vereniging Nederlandse Poppodia en Festivals (VNPF) and venues association Vereniging van Schouwburg en Concertgebouwdirecties (VSCD).
Spokesman Marlies Oele, of the Dutch Association for Performing Arts, another supporter of the service, released a statement about the launch: “We are committed to a healthy and safe working environment, where everyone can find a place to report abuses with the certainty of being heard without fear.”
Those wishing to use the service are able to ring or email and should expect a response within one working day or less. The service aims to be as discreet as is necessary – something that is likely inspired by the many women who, speaking during last year’s #metoo movement, said their careers would’ve been ruined had any reports of harassment been made public.
The service aims to supplement existing regulations and protocols within individual organisations. The service is open to all workers in the entertainment sectors, meaning that employees, freelancers, trainees, volunteers and third parties will all equally be able to access the service.
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Industry backs equality for self-employed fathers
Ahead of father’s day this year, campaigners and the music industry have joined forces to demand action over shared parental leave for self-employed fathers. Campaign group Parental Pay Equality, backed by UK Music, have criticised the government for what they say is continual inaction over the needs of self-employed parents.
According to new figures from the Trades Union Congress (TUC), almost 100,000 new fathers are missing out on paid paternity leave because their self-employed worker status means they don’t qualify for government schemes. Last year this number was over 110,000, which worked out to around one in five dads.
Under current schemes, self-employed mothers can claim maternity allowance but self-employed fathers get no paid parental leave whatsoever. Labour MP Tracy Brabin is at the forefront of the campaign to change this in Westminster with her #SelfieLeave Bill.
The music industry is filled with many self-employed workers and this year’s campaign has attracted the attention of many well-known fathers. Speaking about the campaign, Coldplay’s Chris Martin, a dad of two, says: “So many of our crew, both in the studio and on the road, are freelance, and we don’t want to lose half of that talent when they become parents.”
“If women are forced to always be the main carers, we all lose out massively.”
Parental Pay Equality was founded by award-winning sound engineer Olga FitzRoy. She has criticised the government for promoting the idea of shared parenting but not legislating it into reality. She says: “They [the government] seem happy to exclude a quarter of fathers from hands-on parenting.
“If they were serious about improving shared parental leave they would immediately adopt the proposals in the #SelfieLeave bill that is before Parliament at the moment.”
The TUC, the source of the new figures, has also highlighted how change to the current system would benefit new mothers too. TUC general secretary Frances O’Grady explains: “When parents share caring responsibilities it helps strengthen relationships – and makes it easier for mothers to continue their careers.”
This idea was echoed by another father in the music industry, Rudimental’s Piers Aggett. A father of one, Aggett is also a supporter of the campaign. He says: “Artists need the ability to share parenting according to need.
“If women are forced to always be the main carers, we all lose out massively. It’s time for change.”
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McFarland rearrested over ticket scam allegations
Fyre Festival promoter Billy McFarland, who faces up to 40 years in prison after pleading guilty in March to defrauding investors, has been slapped with a new lawsuit by the FBI for allegedly running a fraudulent ticket-selling scam.
The suit, filed yesterday (13 June) in the US district court for southern New York, charges McFarland with one further count of wire fraud and a second of money laundering.
The bureau alleges McFarland earned approximately US$100,000 by selling non-existent tickets to music, fashion and sporting events – including Burning Man 2018, Coachella 2018 and the 2018 Grammy Awards – through a company called NYC VIP Access, using customer data from those who had bought Fyre Festival tickets. “He targeted the same victims who tried to attend his Fyre Festival,” prosecutor Kristy Greenberg told Manhattan judge Gabriel W. Gorenstein, according to the Associated Press.
Gorenstein ordered 26-year-old McFarland to be re-arrested, pending his sentencing next week on the original charges.
“Mr McFarland is a serial fraudster, plain and simple”
His lawyer, Randall Jackson, said the detention is unnecessary, stating that McFarland cooperated with investigators and shows no risk of fleeing. “We vigorously contest what is in this complaint,” Jackson told the judge.
However, Greenberg called McFarland “a serial fraudster, plain and simple”, and said he is “looking at a significant term of imprisonment”.
Fyre Festival – billed as “the adventure of a lifetime” amid the “beautiful turquoise waters and idyllic beaches” of the island of Grand Exuma, in the Bahamas – spectacularly collapsed on its first day, with festivalgoers arriving on the island to find a half-built festival site and no sign of the luxury accommodation and dining included with their $1,500–$50,000 tickets.
McFarland (pictured) co-founded the event with Jeffrey Atkins (Ja Rule)’s Fyre Media company, but “ran the show”, says Atkins, who has denied liability for the disaster. McFarland was arrested in July 2017, and has since been charged with defrauding 80 investors out of nearly $26m.
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StubHub stubbed over drip pricing
A lawsuit filed against secondary ticketing giant StubHub and its parent company, eBay, in San Francisco has been allowed to go forward, and StubHub’s bid to send the case to arbitration declined.
Filed by Susan Wang, the lawsuit alleges that the ticketing company hides fees from customers until the payment confirmation pages, after the customer has given billing information.
The judge for the case, Superior Court judge Harold Kahn, said on Monday that StubHub would be unable to escape the proposed lawsuit, as there were enough factual questions to get the lead complainant “past the pleading hurdle”.
The suit was filed in February, and alleges that StubHub uses drip pricing to lure customers in with ‘bargain’ prices before hitting them with large hidden fees on the payment confirmation page. Wang claimed the site violates the US Consumer Legal Remedies Act, Unfair Competition Law and False Advertising Law.
Kahn rejected Powers’ argument that the terms and conditions on the website say that StubHub may charge fees, saying he was trying to “get off scot-free because somewhere in what I imagine to be a prolix [lengthy] document, it says it’s going to charge fees.”
Wang’s representative, Annick Persinger, tells Law360: “We look forward to pursuing claims on behalf of StubHub customers who were lured into shopping on StubHub because of misleadingly low advertised prices that do not include added fees.”
The news follows on from other clampdowns on drip pricing, including Viagogo’s recent sanctions by the UK Advertising Standards Authority.
IQ has contacted StubHub for comment.
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Publishers raise new concerns over SGAE practices
The International Confederation of Music Publishers (ICMP) has today raised new concerns that controversial Spanish performance rights organisation (PRO) SGAE is back to its old tricks.
In a statement released today, ICMP suggests despite being reprimanded by the international publishing community and a World Intellectual Property Organisation (WIPO) arbitration panel, SGAE continues to act dubiously. The dubious behaviour in question refers to a scam dubbed ‘the wheel’.
‘The wheel’ saw certain SGAE members and Spanish television execs allegedly work together to create “low-quality music”. This music was broadcast late at night to generate performance royalties which could be split between the two parties. Despite its long history, things came to a head in June 2017, when SGAE’s offices were raided by police and 18 people were arrested.
When WIPO first gave their decision, SGAE introduced minimal measures to comply and address the ‘wheel’ problem. However, ICMP suggests the intention was never to remedy the ‘wheel’ completely. This latest decision by SGAE, to reject the WIPO decision entirely, will affect music publishers and the authors they represent, both in Spain and abroad, considerably.
“It is important to note that we have been trying to work with SGAE for years with no results and publishers are now forced to look at alternative licensing options outside SGAE.”
According to an ICMP source who spoke to IQ, “SGAE is basically asking music publishers to give the money – that was distributed to them and which they distributed to their authors – back. The losses are considerable but vary from one music publisher to another.”
In the statement released by ICMP today, it suggested action is now likely to be taken against SGAE by publishers themselves. “ICMP and individual music publishers are being forced to consider unilateral actions.
“This may include finding alternative licensing options in order to protect their repertoire in Spain.”
What a concrete course of action to prevent further malpractice by SGAE would look like is unknown right now. “At this point, given SGAE’s governing body’s unwillingness to solve the situation, probably the best thing would be a revision of the society’s governing structure,” says the ICMP source.
“It is important to note that we have been trying to work with SGAE for years with no results and publishers are now forced to look at alternative licensing options outside SGAE.”
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#SaveStageLighting: EU parliament votes for exemption
Members of the European Parliament (MEP) have handed an early victory to campaigners against the EU’s proposed new Ecodesign directive – which critics argue would cause venues across Europe to go dark – by voting to maintain the current exemption for the entertainment sector.
Venues and industry associations last month warned some of the continent’s best-loved music venues and theatres face a blackout post-2020, under plans to regulate stage lighting under the same environmental rules that govern those sold for domestic and office use.
The UK’s National Theatre said the proposed regulations – which require a minimum efficiency of 85 lumens per watt and a maximum standby power of 0.5W – may mean it “can’t light our shows anymore”, while Beyoncé’s lighting designer, Tim Routledge, said the rules would hurt “every music venue, arena, music festival and touring concert production across Europe”. “Pretty much every single tool that we use as lighting designers will be rendered obsolete by these rules,” he said.
Pending any unexpected (and unrealistic) advances in lighting technology by 2020, the effect of the Ecodesign Working Plan, if implemented in its current form, would be to cause “thousands of venues, theatres and music festivals across the continent [to go] dark”, added the Save Stage Lighting campaign, whose official hashtag – #SaveStageLighting – was beamed onto theatres and venues across the continent in protest at the proposed rules.
“This is vital for small theatres across Europe”
Speaking in the European Parliament in Brussels on 31 May, British MEP Ashley Fox said an exemption is “vital for small theatres across Europe”, and submitted an oral amendment to the directive to that effect.
“I propose that we add a new [amendment] as follows: ‘Whereas the existing exemption for stage lighting from the Commission regulations 244/2009 and 1194/2012 has been an appropriate and effective way to respect the special needs and circumstances for theatres and the whole entertainment industry and should be continued,’” he told the house.
The vote (a video of which can be viewed here) passed, with 330 MEPs voting in favour, 246 against and 44 abstentions.
While the industry will no doubt welcome having a majority of EU parliamentarians in favour of exempting venues from the new rules, Belgian association STEPP – one of several industry bodies to contact MEPs over the issue – warns against celebrating prematurely, as the vote is “not yet legislation, and thus does not mean that the danger has passed for our sector”.
However, what Fox’s intervention does demonstrate is that “the European Commission can no longer ignore this important signal” from lawmakers, it adds.
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Manchester appoints night-time economy advisor
Manchester, England, has appointed its first night-time economy advisor, Sacha Lord. The role has been created by Greater Manchester mayor Andy Burnham to ensure a consistent approach to Manchester’s nightlife by co-ordinating with businesses, police, customers and residents in order to provide the best experience possible for everyone involved.
Lord’s previous 25 years of experience in the sector has included heading large projects such as both the Parklife festival and the Warehouse Project, as well as being a board director of the Night Time Industries Association (NTIA).
The job will entail a similar role to London’s night czar. Lord has previously called on the Greater Manchester mayor to create a night czar role for the city. The role will focus greatly on the economic side of Manchester’s nightlife, famous for having the highest spend on nightlife per person in the whole of Britain (the night time economy across the whole of Britain is worth in excess of £70 billion).
“Drawing on my 25 years of experience in the sector, along with comments and opinions from all 10 boroughs and members of the panel, I’m looking forward to getting work and helping to build on Greater Manchester’s night-time economy,” says Lord.
“This is an historic moment”
Manchester is revered for its contributions to Britain’s culture identity, from developing bands like Oasis and rhe Smiths, to its iconic Canal Street and Factory Records, as well as the creation of thousands of jobs in the sector.
Chairman of the NTIA, Alan D. Miller, comments: “This is an historic moment. Manchester, which has given so much to the world culturally now has an ambassador that will help the city and region to flourish even further and continue to act as the jewel in Britain’s crown.”
In other NTIA news, the association is hosting the Summer Solstice Trade festival, as part of the mayor of London’s Sounds Like London campaign. The one-day conference takes place on 12 June at Dinerama in Shoreditch, and will see panels and debates about the progress and future of the industry.
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