I 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Better Oversight of 

5 Secondary Sales and Accountability in Concert Ticketing 

6 Act of 2016’’. 

7 SEC. 2. DEFINITIONS. 

8 As used in this Act the following definitions apply: 


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1 (1) The term ‘‘ancillary charges’’ means service 

2 fees, convenience charges, parking fees, and other 

3 charges associated with the purchase of a ticket and 

4 not included in the base price of the ticket. 

5 (2) The term ‘‘base price’’ means the price 

6 charged for a ticket other than any ancillary 

7 charges. 

8 (3) The term ‘‘box office’’ means a physical lo9 cation where tickets are offered for primary sale. 

10 (4) The term ‘‘bundled series tickets’’ means 

11 packages of tickets for multiple events that are part 

12 of the same entertainment series. 

13 (5) The term ‘‘distribution method’’ means the 

14 manner in which a primary ticket seller distributes 

15 tickets to a particular event, whether through pri16 mary sale, limited presale promotions, donations to 

17 charity, reservations of season ticket holders, or allo18 cated to the primary ticket seller, team, artist, or 

19 venue. 

20 (6) The term ‘‘face value’’ means the total price 

21 of a ticket including both the base price and any an22 cillary charges. 

23 (7) The term ‘‘primary sale’’, with regards to a 

24 ticket, means the initial sale of a ticket that has not 

25 been sold previous to such sale, by a primary ticket 


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1 seller to the general public on or after the date ad2 vertised such sale. 

3 (8) The term ‘‘primary ticket seller’’ means an 

4 owner or operator of a venue or a sports team, a 

5 manager or provider of an event, or a provider of 

6 ticketing services (or an agent of such owner, oper7 ator, manager, or provider) that engages in the pri8 mary sale of tickets for an event or retains the au9 thority to otherwise distribute tickets. 

10 (9) The terms ‘‘resale’’ or ‘‘secondary sale’’, 

11 with regards to a ticket, mean any sale of a ticket 

12 that occurs after the initial sale of the ticket. 

13 (10) The term ‘‘secondary ticket sales market14 place’’ means a website, software application for a 

15 mobile device, any other digital platform, or portion 

16 thereof, whose primary purpose is to facilitate the 

17 resale of tickets to consumers. 

18 (11) The term ‘‘ticket’’ means a ticket of ad19 mission to a sporting event, theater, musical per20 formance, or place of public amusement of any kind. 

21 SEC. 3. RULES ON TRANSPARENCY OF TICKET MARKETING, 

22 DISTRIBUTION, AND PRICING BY PRIMARY 

23 TICKET SELLERS. 

24 Not later than 180 days after the date of enactment 

25 of this Act, the Federal Trade Commission shall promulVerDate Sep 11 2014 04:37 May 17, 2016 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5245.IH H5245

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1 gate rules in accordance with section 553 of title 5, United 

2 States Code, that include the following requirements and 

3 prohibitions with regard to the primary sale, distribution, 

4 and pricing of tickets: 

5 (1) A requirement that a primary ticket seller 

6 disclose and display on the website of such primary 

7 ticket seller the total number of tickets offered for 

8 sale by such primary ticket seller not less than 7 

9 days before the date on which tickets shall be avail10 able for primary sale. 

11 (2) A requirement that a primary ticket seller 

12 make publicly available, not less than 7 days before 

13 the day on which tickets shall be available for pri14 mary sale, the total number and distribution method 

15 of all tickets not made available for sale to the gen16 eral public, the distribution of which is the responsi17 bility of that primary ticket seller. 

18 (3) A requirement that the distribution method 

19 for each particular ticket and the date and time of 

20 the primary sale be printed on each such ticket. 

21 (4) A requirement that the primary ticket seller 

22 include, with any listing of the price of a ticket on 

23 the primary ticket seller’s website or in any pro24 motional material where the ticket price is listed, all 

25 ancillary charges related to the purchase of a ticket, 


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1 and include such charges and the total cost to the 

2 consumer on each individual ticket. 

3 (5) A requirement that a primary ticket seller 

4 include all ancillary charges in any refund of a ticket 

5 that is provided for in the primary ticket seller’s re6 fund policies. 

7 (6) A prohibition on requiring that a consumer 

8 who has purchased tickets from a primary ticket 

9 seller only be permitted to resell such tickets in a 

10 manner determined by the primary ticket seller. 

11 (7) A requirement that a primary ticket seller 

12 provide a full refund to any consumer who purchases 

13 a nontransferable ticket if requested by the con14 sumer not later than 1 week prior to the event. 

15 SEC. 4. RULES FOR SECONDARY TICKET SALES MARKET16 PLACES. 

17 Not later than 180 days after the date of enactment 

18 of this Act, the Federal Trade Commission shall promul19 gate rules in accordance with section 553 of title 5, United 

20 States Code, that include the following requirements and 

21 prohibitions with regard to the secondary sale, distribu22 tion, and pricing of tickets: 

23 (1) A requirement that if the secondary ticket 

24 sales marketplace does not possess the ticket at the 


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1 time of the sale that such secondary ticket sales 

2 marketplace provide— 

3 (A) a clear statement that the secondary 

4 ticket sales marketplace does not possess the 

5 ticket; and 

6 (B) an explanation of procedures to be fol7 lowed by the purchaser to obtain a refund from 

8 the secondary ticket sales marketplace if the 

9 ticket the purchaser ultimately receives does not 

10 match the description of the ticket by the sec11 ondary ticket sales marketplace. 

12 (2) A prohibition on the use of software to cir13 cumvent a security measure, access control system, 

14 or other control or measure on a primary ticket sell15 er’s Internet website that is used by the primary 

16 seller to ensure equitable consumer access to tickets 

17 for any given event; 

18 (3) A prohibition on the sale of any ticket 

19 knowingly obtained by a secondary seller in violation 

20 of paragraph (2). 

21 (4) A requirement that a secondary ticket sales 

22 marketplace and online resale marketplace disclose 

23 upon offering a ticket for resale— 

24 (A) the distribution method and face value 

25 of each ticket; 


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1 (B) the precise location of the seat or 

2 space to which the ticket would entitle the bear3 er, or, if information about the precise location 

4 of the seat or space is not available, descriptive 

5 information about the location of the seat or 

6 space, such as a description of a section or 

7 other area within the venue where the seat or 

8 space is located; and 

9 (C) if the secondary ticket sales market10 place purchased the ticket during a public sale 

11 of tickets to the event, the date and time of the 

12 purchase of the ticket by the secondary ticket 

13 sales marketplace. 

14 (5) A requirement that an online resale market15 place— 

16 (A) not make any representation of affili17 ation or endorsement with a venue, team, or 

18 artist, as the case may be, without the express 

19 written consent of the venue, team, or artist, as 

20 applicable, except when it constitutes fair use 

21 and is consistent with applicable laws; and 

22 (B) post clear and conspicuous notice on 

23 the website of such online resale marketplace 

24 that the website is for the secondary sale of 

25 tickets and a requirement that the user confirm 


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1 having read such notice before starting any 

2 transaction. 

3 (6) A prohibition on the resale of a ticket by an 

4 individual employee of any venue, primary ticket 

5 seller, team, artist, online resale marketplace, or box 

6 office that is involved in hosting, promoting, per7 forming in, or selling tickets if such resale— 

8 (A) is for a higher price than face value of 

9 the ticket; or 

10 (B) is made to any third party and the em11 ployee has actual knowledge, or knowledge fair12 ly implied on the basis of objective cir13 cumstances, that the third party intends to sell 

14 the ticket for a higher price than face value of 

15 the ticket. 

16 (7) A requirement that an online resale market17 place disclose to the consumer when the secondary 

18 ticket sales marketplace of a ticket is the primary 

19 ticket seller, venue, team, or artist associated with 

20 the event to which the ticket relates. 

21 SEC. 5. ENFORCEMENT. 

22 (a) FEDERAL TRADE COMMISSION.—A violation of a 

23 rule prescribed pursuant to section 3 or 4 or a violation 

24 of section 5(a)(1) shall be treated as a violation of a rule 

25 defining an unfair or deceptive act or practice prescribed 


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1 under section 18(a)(1)(B) of the Federal Trade Commis2 sion Act (15 U.S.C. 57a(a)(1)(B)). The Federal Trade 

3 Commission shall enforce this Act in the same manner, 

4 by the same means, and with the same jurisdiction as 

5 though all applicable terms and provisions of the Federal 

6 Trade Commission Act were incorporated into and made 

7 a part of this Act. 

8 (b) STATE ATTORNEYS GENERAL.— 

9 (1) IN GENERAL.—Except as provided in para10 graph (6), in any case in which the attorney general 

11 of a State has reason to believe that an interest of 

12 the residents of that State has been or is threatened 

13 or adversely affected by the engagement of any per14 son in a practice that violates a rule prescribed 

15 under section 3 or 4, the State, as parens patriae, 

16 may bring a civil action on behalf of the residents 

17 of the State in an appropriate district court of the 

18 United States or other court of competent jurisdic19 tion to— 

20 (A) enjoin that practice; 

21 (B) enforce compliance with the rule; 

22 (C) obtain damages, restitution, or other 

23 compensation on behalf of residents of the 

24 State; and 


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1 (D) obtain such other relief as the court 

2 may consider to be appropriate. 

3 (2) NOTICE.—The State shall serve written no4 tice to the Commission of any civil action under 

5 paragraph (1) at least 60 days prior to initiating 

6 such civil action. The notice shall include a copy of 

7 the complaint to be filed to initiate such civil action, 

8 except that if it is not feasible for the State to pro9 vide such prior notice, the State shall provide notice 

10 immediately upon instituting such civil action. 

11 (3) INTERVENTION BY FTC.—Upon receiving 

12 the notice required by paragraph (2), the Commis13 sion may intervene in such civil action and upon in14 tervening— 

15 (A) be heard on all matters arising in such 

16 civil action; 

17 (B) remove the action to the appropriate 

18 United States district court; and 

19 (C) file petitions for appeal of a decision in 

20 such civil action. 

21 (4) SAVINGS CLAUSE.—Nothing in this sub22 section shall prevent the attorney general of a State 

23 from exercising the powers conferred on the attorney 

24 general by the laws of such State to conduct inves25 tigations or to administer oaths or affirmations or to 


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1 compel the attendance of witnesses or the production 

2 of documentary and other evidence. Nothing in this 

3 section shall prohibit the attorney general of a State, 

4 or other authorized State officer, from proceeding in 

5 State or Federal court on the basis of an alleged vio6 lation of any civil or criminal statute of that State. 

7 (5) VENUE; SERVICE OF PROCESS; JOINDER.— 

8 In a civil action brought under paragraph (1)— 

9 (A) the venue shall be a judicial district in 

10 which the defendant or a related party is found, 

11 is an inhabitant, or transacts business, or wher12 ever venue is proper under section 1391 of title 

13 28, United States Code; 

14 (B) process may be served without regard 

15 to the territorial limits of the district or of the 

16 State in which the civil action is instituted; and 

17 (C) a person who participated with a de18 fendant or related party in an alleged violation 

19 that is being litigated in the civil action may be 

20 joined in the civil action without regard to the 

21 residence of the person. 

22 (6) PREEMPTIVE ACTION BY FTC.—Whenever a 

23 civil action or an administrative action has been in24 stituted by or on behalf of the Commission for viola25 tion of any rule described under paragraph (1), no 


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1 State may, during the pendency of such action insti2 tuted by or on behalf of the Commission, institute 

3 a civil action under paragraph (1) against any de4 fendant named in the complaint in such action for 

5 violation of any rule as alleged in such complaint. 

6 (7) AWARD OF COSTS AND FEES.—If a State 

7 prevails in any civil action under paragraph (1), the 

8 State can recover reasonable costs and attorney fees 

9 from the lender or related party. 

10 (c) PRIVATE RIGHT OF ACTION.—Any person who 

11 suffers injury as a result of another person’s violation of 

12 a rule prescribed pursuant to section 3 or 4, may bring 

13 a civil action against such person in a United States dis14 trict court and may recover from such person damages 

15 for such injury plus $1,000 for each requirement or pro16 hibited act set forth in such sections that such person vio17 lated with respect to a ticket sold to the person bringing 

18 such action, and reasonable attorneys’ fees and costs. 

19 SEC. 6. NONPREEMPTION. 

20 Nothing in this Act shall affect the authority of any 

21 State or local government to establish or continue in effect 

22 a provision of law of the State or local government relating 

23 to the regulation of the resale of tickets to events or the 

24 pricing of such tickets for resale, except to the extent that 

25 such provision is inconsistent with this Act or a regulation 


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1 promulgated under this Act, and then only to the extent 

2 of the inconsistency. A provision of law of a State or local 

3 government is not inconsistent with this Act or a regula4 tion promulgated under this Act if such provision provides 

5 equal or greater protection to consumers than the protec6 tion provided under this Act or such regulation. 

7 SEC. 7. FTC STUDY OF TICKET MARKET. 

8 (a) STUDY.—The Federal Trade Commission shall 

9 conduct a study of the ticket market to determine— 

10 (1) who is purchasing tickets from primary 

11 ticket sellers and how many of these tickets are later 

12 resold by secondary ticket sales marketplaces; 

13 (2) the impact on consumers of nontransferable 

14 tickets and whether all tickets should be required to 

15 be transferable; and 

16 (3) the extent to which automated ticketing17 purchasing programs and other computer software is 

18 used to purchase tickets or circumvent ticketing 

19 website safeguards used by primary ticket sellers. 

20 (b) REPORT.—Not later than one year after the date 

21 of enactment of this Act, the Commission shall transmit 

22 a report to Congress containing the findings of the study. 

Æ 


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