New Jersey Passes Legislation Prohibiting White Label Ticketing Sites
Just before the New Year, the New Jersey General Assembly passed an online ticketing bill that prohibits the use of misleading domain names in websites that sell tickets. The legislation passed both the Senate and the Assembly unanimously and will now be sent to Governor Murphy for consideration.
For years, “white label” websites have been deceiving consumers into believing that they are buying tickets directly from the official event, venue, artist or team, when in fact they are shopping on a ticket resale website. These white label sites typically source their functionality – seat maps, payment processing, customer service, etc. – from affiliated resale sites and use their deceptive URLs to manipulate search engine results. Perhaps most concerning, these sites frequently charge higher prices and higher fees than the resale websites they are affiliated with. Below are two examples of white label sites with deceptive URLs:
The legislation supported by the New Jersey Legislature makes it unlawful for a ticket website operator to intentionally use an Internet domain name that contains any of the following:
- The name of the place of entertainment, or a name that is substantially similar; or
- The name of the event, or any name that is substantially similar, including the name of the person or entity scheduled to perform or appear at the place of entertainment.
This legislation takes a major step towards protecting New Jersey consumers. StubHub supports this legislation and urges Governor Murphy to sign the bill into law as passed by the Legislature.