Better Oversight of Secondary Sales and Accountability in Concert Ticketing Act of 2016

Summary: Better Oversight of Secondary Sales and Accountability in Concert Ticketing Act of 2016 This bill directs the Federal Trade Commission (FTC) to promulgate rules for the primary or secondary sale, distribution, or pricing of tickets for sporting events, theater, musical performances, or places of public amusement. For primary sales, sellers must: (1) disclose at least seven days prior to sale, the total number of tickets the seller is offering and the total number and distribution method of tickets not available to the general public; (2) print on each ticket the distribution method, date, and time of the primary sale; (3) disclose service fees, convenience charges, and parking fees and provide refunds for such charges; and (4) provide full refunds for nontransferable tickets if requested by the consumer by one week prior to the event. Primary sellers are prohibited from requiring that consumers only be permitted to resell tickets in a manner determined by the primary seller.  For secondary sales, the secondary ticket sales marketplace must: (1) disclose if it does not possess the ticket at the time of sale, and (2) explain refund procedures if the ticket received does not match the description by the secondary marketplace.  The secondary sales rules must prohibit the use of software to circumvent a security system or access control measure on a primary ticket seller's website that is used to ensure equitable consumer access to tickets.  The secondary marketplace must disclose: (1) the distribution method and face value of each ticket; (2) the location of the seats or space; and (3) if the marketplace purchased the ticket during a public sale, the date and time of the purchase by the secondary marketplace.  Online marketplace resellers are: (1) prohibited from representing an affiliation or endorsement with venues, teams, or artists without their consent, except when it constitutes fair use; and (2) required to post notice on their websites indicating that they are conducting secondary sales and requiring users to confirm having read such notice before starting a transaction. Individual employees of venues, primary ticket sellers, teams, artists, online resale marketplaces, or box offices are prohibited from reselling tickets: (1) for higher than face value, or (2) to third parties for resale for higher than face value.  Online marketplace resellers must disclose when the secondary marketplace of a ticket is the primary ticket seller, venue, team, or artist associated with the event. The FTC and states are provided authority to enforce against violations. Persons may bring private civil actions to recover damages for injuries from violations.

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.