[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5245 Introduced in House (IH)]
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114th CONGRESS
2d Session
H. R. 5245
To direct the Federal Trade Commission to prescribe rules to protect
consumers from unfair and deceptive acts and practices in connection
with primary and secondary ticket sales, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 16, 2016
Mr. Pascrell introduced the following bill; which was referred to the
Committee on Energy and Commerce
_______________________________________________________________________
A BILL
To direct the Federal Trade Commission to prescribe rules to protect
consumers from unfair and deceptive acts and practices in connection
with primary and secondary ticket sales, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Better Oversight of Secondary Sales
and Accountability in Concert Ticketing Act of 2016''.
SEC. 2. DEFINITIONS.
As used in this Act the following definitions apply:
(1) The term ``ancillary charges'' means service fees,
convenience charges, parking fees, and other charges associated
with the purchase of a ticket and not included in the base
price of the ticket.
(2) The term ``base price'' means the price charged for a
ticket other than any ancillary charges.
(3) The term ``box office'' means a physical location where
tickets are offered for primary sale.
(4) The term ``bundled series tickets'' means packages of
tickets for multiple events that are part of the same
entertainment series.
(5) The term ``distribution method'' means the manner in
which a primary ticket seller distributes tickets to a
particular event, whether through primary sale, limited presale
promotions, donations to charity, reservations of season ticket
holders, or allocated to the primary ticket seller, team,
artist, or venue.
(6) The term ``face value'' means the total price of a
ticket including both the base price and any ancillary charges.
(7) The term ``primary sale'', with regards to a ticket,
means the initial sale of a ticket that has not been sold
previous to such sale, by a primary ticket seller to the
general public on or after the date advertised such sale.
(8) The term ``primary ticket seller'' means an owner or
operator of a venue or a sports team, a manager or provider of
an event, or a provider of ticketing services (or an agent of
such owner, operator, manager, or provider) that engages in the
primary sale of tickets for an event or retains the authority
to otherwise distribute tickets.
(9) The terms ``resale'' or ``secondary sale'', with
regards to a ticket, mean any sale of a ticket that occurs
after the initial sale of the ticket.
(10) The term ``secondary ticket sales marketplace'' means
a website, software application for a mobile device, any other
digital platform, or portion thereof, whose primary purpose is
to facilitate the resale of tickets to consumers.
(11) The term ``ticket'' means a ticket of admission to a
sporting event, theater, musical performance, or place of
public amusement of any kind.
SEC. 3. RULES ON TRANSPARENCY OF TICKET MARKETING, DISTRIBUTION, AND
PRICING BY PRIMARY TICKET SELLERS.
Not later than 180 days after the date of enactment of this Act,
the Federal Trade Commission shall promulgate rules in accordance with
section 553 of title 5, United States Code, that include the following
requirements and prohibitions with regard to the primary sale,
distribution, and pricing of tickets:
(1) A requirement that a primary ticket seller disclose and
display on the website of such primary ticket seller the total
number of tickets offered for sale by such primary ticket
seller not less than 7 days before the date on which tickets
shall be available for primary sale.
(2) A requirement that a primary ticket seller make
publicly available, not less than 7 days before the day on
which tickets shall be available for primary sale, the total
number and distribution method of all tickets not made
available for sale to the general public, the distribution of
which is the responsibility of that primary ticket seller.
(3) A requirement that the distribution method for each
particular ticket and the date and time of the primary sale be
printed on each such ticket.
(4) A requirement that the primary ticket seller include,
with any listing of the price of a ticket on the primary ticket
seller's website or in any promotional material where the
ticket price is listed, all ancillary charges related to the
purchase of a ticket, and include such charges and the total
cost to the consumer on each individual ticket.
(5) A requirement that a primary ticket seller include all
ancillary charges in any refund of a ticket that is provided
for in the primary ticket seller's refund policies.
(6) A prohibition on requiring that a consumer who has
purchased tickets from a primary ticket seller only be
permitted to resell such tickets in a manner determined by the
primary ticket seller.
(7) A requirement that a primary ticket seller provide a
full refund to any consumer who purchases a nontransferable
ticket if requested by the consumer not later than 1 week prior
to the event.
SEC. 4. RULES FOR SECONDARY TICKET SALES MARKETPLACES.
Not later than 180 days after the date of enactment of this Act,
the Federal Trade Commission shall promulgate rules in accordance with
section 553 of title 5, United States Code, that include the following
requirements and prohibitions with regard to the secondary sale,
distribution, and pricing of tickets:
(1) A requirement that if the secondary ticket sales
marketplace does not possess the ticket at the time of the sale
that such secondary ticket sales marketplace provide--
(A) a clear statement that the secondary ticket
sales marketplace does not possess the ticket; and
(B) an explanation of procedures to be followed by
the purchaser to obtain a refund from the secondary
ticket sales marketplace if the ticket the purchaser
ultimately receives does not match the description of
the ticket by the secondary ticket sales marketplace.
(2) A prohibition on the use of software to circumvent a
security measure, access control system, or other control or
measure on a primary ticket seller's Internet website that is
used by the primary seller to ensure equitable consumer access
to tickets for any given event;
(3) A prohibition on the sale of any ticket knowingly
obtained by a secondary seller in violation of paragraph (2).
(4) A requirement that a secondary ticket sales marketplace
and online resale marketplace disclose upon offering a ticket
for resale--
(A) the distribution method and face value of each
ticket;
(B) the precise location of the seat or space to
which the ticket would entitle the bearer, or, if
information about the precise location of the seat or
space is not available, descriptive information about
the location of the seat or space, such as a
description of a section or other area within the venue
where the seat or space is located; and
(C) if the secondary ticket sales marketplace
purchased the ticket during a public sale of tickets to
the event, the date and time of the purchase of the
ticket by the secondary ticket sales marketplace.
(5) A requirement that an online resale marketplace--
(A) not make any representation of affiliation or
endorsement with a venue, team, or artist, as the case
may be, without the express written consent of the
venue, team, or artist, as applicable, except when it
constitutes fair use and is consistent with applicable
laws; and
(B) post clear and conspicuous notice on the
website of such online resale marketplace that the
website is for the secondary sale of tickets and a
requirement that the user confirm having read such
notice before starting any transaction.
(6) A prohibition on the resale of a ticket by an
individual employee of any venue, primary ticket seller, team,
artist, online resale marketplace, or box office that is
involved in hosting, promoting, performing in, or selling
tickets if such resale--
(A) is for a higher price than face value of the
ticket; or
(B) is made to any third party and the employee has
actual knowledge, or knowledge fairly implied on the
basis of objective circumstances, that the third party
intends to sell the ticket for a higher price than face
value of the ticket.
(7) A requirement that an online resale marketplace
disclose to the consumer when the secondary ticket sales
marketplace of a ticket is the primary ticket seller, venue,
team, or artist associated with the event to which the ticket
relates.
SEC. 5. ENFORCEMENT.
(a) Federal Trade Commission.--A violation of a rule prescribed
pursuant to section 3 or 4 or a violation of section 5(a)(1) shall be
treated as a violation of a rule defining an unfair or deceptive act or
practice prescribed under section 18(a)(1)(B) of the Federal Trade
Commission Act (15 U.S.C. 57a(a)(1)(B)). The Federal Trade Commission
shall enforce this Act in the same manner, by the same means, and with
the same jurisdiction as though all applicable terms and provisions of
the Federal Trade Commission Act were incorporated into and made a part
of this Act.
(b) State Attorneys General.--
(1) In general.--Except as provided in paragraph (6), in
any case in which the attorney general of a State has reason to
believe that an interest of the residents of that State has
been or is threatened or adversely affected by the engagement
of any person in a practice that violates a rule prescribed
under section 3 or 4, the State, as parens patriae, may bring a
civil action on behalf of the residents of the State in an
appropriate district court of the United States or other court
of competent jurisdiction to--
(A) enjoin that practice;
(B) enforce compliance with the rule;
(C) obtain damages, restitution, or other
compensation on behalf of residents of the State; and
(D) obtain such other relief as the court may
consider to be appropriate.
(2) Notice.--The State shall serve written notice to the
Commission of any civil action under paragraph (1) at least 60
days prior to initiating such civil action. The notice shall
include a copy of the complaint to be filed to initiate such
civil action, except that if it is not feasible for the State
to provide such prior notice, the State shall provide notice
immediately upon instituting such civil action.
(3) Intervention by ftc.--Upon receiving the notice
required by paragraph (2), the Commission may intervene in such
civil action and upon intervening--
(A) be heard on all matters arising in such civil
action;
(B) remove the action to the appropriate United
States district court; and
(C) file petitions for appeal of a decision in such
civil action.
(4) Savings clause.--Nothing in this subsection shall
prevent the attorney general of a State from exercising the
powers conferred on the attorney general by the laws of such
State to conduct investigations or to administer oaths or
affirmations or to compel the attendance of witnesses or the
production of documentary and other evidence. Nothing in this
section shall prohibit the attorney general of a State, or
other authorized State officer, from proceeding in State or
Federal court on the basis of an alleged violation of any civil
or criminal statute of that State.
(5) Venue; service of process; joinder.--In a civil action
brought under paragraph (1)--
(A) the venue shall be a judicial district in which
the defendant or a related party is found, is an
inhabitant, or transacts business, or wherever venue is
proper under section 1391 of title 28, United States
Code;
(B) process may be served without regard to the
territorial limits of the district or of the State in
which the civil action is instituted; and
(C) a person who participated with a defendant or
related party in an alleged violation that is being
litigated in the civil action may be joined in the
civil action without regard to the residence of the
person.
(6) Preemptive action by ftc.--Whenever a civil action or
an administrative action has been instituted by or on behalf of
the Commission for violation of any rule described under
paragraph (1), no State may, during the pendency of such action
instituted by or on behalf of the Commission, institute a civil
action under paragraph (1) against any defendant named in the
complaint in such action for violation of any rule as alleged
in such complaint.
(7) Award of costs and fees.--If a State prevails in any
civil action under paragraph (1), the State can recover
reasonable costs and attorney fees from the lender or related
party.
(c) Private Right of Action.--Any person who suffers injury as a
result of another person's violation of a rule prescribed pursuant to
section 3 or 4, may bring a civil action against such person in a
United States district court and may recover from such person damages
for such injury plus $1,000 for each requirement or prohibited act set
forth in such sections that such person violated with respect to a
ticket sold to the person bringing such action, and reasonable
attorneys' fees and costs.
SEC. 6. NONPREEMPTION.
Nothing in this Act shall affect the authority of any State or
local government to establish or continue in effect a provision of law
of the State or local government relating to the regulation of the
resale of tickets to events or the pricing of such tickets for resale,
except to the extent that such provision is inconsistent with this Act
or a regulation promulgated under this Act, and then only to the extent
of the inconsistency. A provision of law of a State or local government
is not inconsistent with this Act or a regulation promulgated under
this Act if such provision provides equal or greater protection to
consumers than the protection provided under this Act or such
regulation.
SEC. 7. FTC STUDY OF TICKET MARKET.
(a) Study.--The Federal Trade Commission shall conduct a study of
the ticket market to determine--
(1) who is purchasing tickets from primary ticket sellers
and how many of these tickets are later resold by secondary
ticket sales marketplaces;
(2) the impact on consumers of nontransferable tickets and
whether all tickets should be required to be transferable; and
(3) the extent to which automated ticketing-purchasing
programs and other computer software is used to purchase
tickets or circumvent ticketing website safeguards used by
primary ticket sellers.
(b) Report.--Not later than one year after the date of enactment of
this Act, the Commission shall transmit a report to Congress containing
the findings of the study.
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