Ticket resale giants sue Washington DC over new law that caps scalper markups at 10%

A group of prominent ticket resale companies have filed a lawsuit against Washington DC over a new law they claim will harm their business. The District of Columbia recently passed the Restricting Egregious Scalping Against Live Entertainment Amendment (RESALE) Act, which will take effect on January 1, 2027. This legislation limits ticket resellers from increasing the price of tickets by more than 10%, including service fees and taxes.

It also caps the service fees that resale marketplaces can charge at 10% of the original ticket price. However, this law does not apply to primary ticket sales or tickets for sporting events.

The four companies involved in the lawsuit – SeatGeek, Vivid Seats, Gametime, and TickPick – argue that the RESALE Act is unconstitutional and violates several key clauses of the US Constitution, including the Dormant Commerce Clause, Due Process Clause, and First Amendment. They also claim that the legislation breaches the Home Rule Act, which restricts DC's ability to pass laws that apply exclusively within the District.

The suit alleges that fewer than 1% of transactions covered by the law in 2025 involved buyers and sellers both located in DC, with roughly 85-90% of transactions happening outside the District.

The Ticket Policy Forum, an association of online ticket marketplaces, contends that the law will drive ticket scams into unregulated areas, increasing risks for fans and making it harder for members to compete in the secondary market. Despite the opposition, Ticketmaster, a major player in the ticket resale industry, supported the RESALE Act and has even managed to exempt itself from its provisions. Ticketmaster's spokesperson stated that the law was necessary to protect consumers from ticket scalpers.