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Disclaimer: Educational purposes only. Not legal advice. Consult a qualified NZ legal practitioner for your specific circumstances.

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consumer

Scalping: Reselling tickets at inflated prices in NZ

Key Takeaway

In New Zealand, reselling event tickets for profit (scalping) is generally not illegal, except for specific events where legislation restricts resale prices. The Fair Trading Act 1986 prohibits misleading conduct by sellers acting 'in trade,' such as selling fake or misrepresented tickets. The Consumer Guarantees Act 1993 applies if a seller is 'in trade' and the ticket is not fit for purpose, but does not regulate resale prices.

Understanding Ticket Scalping in New Zealand

Ticket scalping refers to the practice of reselling tickets for events, often at prices significantly higher than their original face value. While this practice is common, its legality in New Zealand depends on specific circumstances and the nature of the sale.

General Legal Position on Reselling Tickets

New Zealand generally does not have overarching legislation that broadly prohibits the resale of event tickets at inflated prices. This means that, for most events, reselling a ticket for more than its original purchase price is not, by itself, an unlawful act.

However, specific laws may apply if the resale involves misleading conduct or if particular events are subject to special anti-scalping legislation.

Fair Trading Act 1986 and Scalping

The Fair Trading Act 1986 (FTA) prohibits misleading or deceptive conduct and false representations by individuals or businesses acting 'in trade' [Source: Fair Trading Act 1986, s 9, s 13]. The FTA is highly relevant when ticket scalping involves dishonest practices.

  • Misleading or Deceptive Conduct: Section 9 of the FTA prohibits any person from engaging in conduct that is misleading or deceptive, or is likely to mislead or deceive, in trade [Source: Fair Trading Act 1986, s 9]. This could apply if a scalper misrepresents the nature of the ticket (e.g., implying it's a premium seat when it's not) or its validity.

  • False Representations: Section 13 of the FTA specifically prohibits false or misleading representations concerning goods or services [Source: Fair Trading Act 1986, s 13]. This could include:

    • Representing that a ticket is legitimate and will grant entry when the seller knows it is fake or has been cancelled.
    • Misrepresenting the seat location, event date, time, or other key details of the ticket.
    • Falsely claiming to be an authorised reseller when they are not.

  • The 'In Trade' Requirement: The FTA primarily applies to conduct undertaken 'in trade' [Source: Fair Trading Act 1986, s 2(1)]. An individual selling a single ticket they can no longer use would generally not be considered to be acting 'in trade.' However, a person or entity regularly buying and reselling multiple tickets for profit, or operating a business around ticket resale, would likely be considered to be acting 'in trade.'

Consumer Guarantees Act 1993 and Scalping

The Consumer Guarantees Act 1993 (CGA) provides consumers with guarantees regarding goods and services they acquire from a supplier 'in trade' [Source: Consumer Guarantees Act 1993, s 2(1)].

  • Applicability to Resold Tickets: If a scalper is deemed to be a 'supplier' acting 'in trade' [Source: Consumer Guarantees Act 1993, s 2(1)], then the tickets they sell must meet certain guarantees. For example, the ticket must be fit for its particular purpose (i.e., grant entry to the specified event) and of acceptable quality [Source: Consumer Guarantees Act 1993, s 6, s 7]. If a resold ticket turns out to be fake, invalid, or for the wrong event, and the seller was 'in trade,' the purchaser may have remedies under the CGA.
  • No Regulation of Price: The CGA does not regulate the price at which goods or services are sold. Therefore, while it ensures the quality and fitness for purpose of a ticket sold 'in trade,' it does not address the issue of inflated resale prices themselves.

Specific Event Anti-Scalping Legislation

While there is no general law against ticket scalping, the New Zealand Government can introduce specific legislation for major events to combat reselling above face value. A notable example is the FIFA Women's World Cup 2023 (Ticket Resale Restrictions) Act 2022, which made it an offence to resell tickets for the FIFA Women's World Cup 2023 for a price above their original value [Source: FIFA Women's World Cup 2023 (Ticket Resale Restrictions) Act 2022, s 6]. Such legislation is event-specific and not a permanent feature of New Zealand consumer law.

Contractual Terms

Event organisers often include terms and conditions with tickets that prohibit resale above face value or even any resale at all. While these are contractual terms between the original ticket purchaser and the event organiser, they can lead to the cancellation of a resold ticket, rendering it invalid for entry. If a scalper sells a ticket knowing it will be invalid due to a breach of these terms, and misrepresents its validity, this could be a breach of the Fair Trading Act 1986.

When to Seek Independent Legal Advice

Individuals who believe they have been a victim of misleading or deceptive conduct related to ticket scalping, or who require clarification on their rights or obligations, should consider seeking independent legal advice. Information and guidance can be obtained from official bodies such as the Commerce Commission or by contacting Community Law Centres for free advice at https://communitylaw.org.nz/.

Key Resources