I 

111TH CONGRESS 

1ST SESSION H. R. 2669 

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. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 2, 2009 

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. 

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 2009’’. 


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1 SEC. 2. RULES ON TRANSPARENCY OF TICKET MARKETING, 

2 DISTRIBUTION, AND PRICING BY PRIMARY 

3 TICKET SELLERS. 

4 Not later than 180 days after the date of enactment 

5 of this Act, the Federal Trade Commission shall promul6 gate rules in accordance with section 553 of title 5, United 

7 States Code, that include the following requirements with 

8 regard to the primary sale, distribution, and pricing of 

9 tickets: 

10 (1) A requirement that a primary ticket seller 

11 disclose and display on the website of such primary 

12 ticket seller the total number of tickets offered for 

13 sale by such primary ticket seller not less than 7 

14 days before the date on which tickets shall be avail15 able for primary sale. 

16 (2) A requirement that a primary ticket seller 

17 make publicly available, not less than 7 days before 

18 the day on which tickets shall be available for pri19 mary sale, the total number and distribution method 

20 of all tickets not made available for sale to the gen21 eral public, the distribution of which is the responsi22 bility of that primary ticket seller. 

23 (3) A requirement that the distribution method 

24 for each particular ticket and the date and time of 

25 the primary sale be printed on each such ticket. 


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1 (4) A requirement that the primary ticket seller 

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

3 the primary ticket seller’s website or in any pro4 motional material where the ticket price is listed, all 

5 ancillary charges related to the purchase of a ticket, 

6 and include such charges and the total cost to the 

7 consumer on each individual ticket. 

8 (5) A requirement that a primary ticket seller 

9 include all ancillary charges in any refund of a ticket 

10 that is provided for in the primary ticket seller’s re11 fund policies. 

12 SEC. 3. RULES FOR SECONDARY TICKET SELLERS. 

13 Not later than 180 days after the date of enactment 

14 of this Act, the Federal Trade Commission shall promul15 gate rules in accordance with section 553 of title 5, United 

16 States Code, that include the following requirements and 

17 prohibitions with regard to the secondary sale, distribu18 tion, and pricing of tickets: 

19 (1) A requirement that if the secondary ticket 

20 seller does not possess the ticket at the time of the 

21 sale that such secondary ticket seller provide— 

22 (A) a clear statement that the secondary 

23 ticket seller does not possess the ticket; and 

24 (B) an explanation of procedures to be fol25 lowed by the purchaser to obtain a refund from 


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1 the secondary ticket seller if the ticket the pur2 chaser ultimately receives does not match the 

3 description of the ticket by the secondary ticket 

4 seller. 

5 (2) A prohibition on the purchase by a sec6 ondary ticket seller of a ticket during the first 48 

7 hours after such ticket is first available for primary 

8 sale. The prohibition in this paragraph shall not 

9 apply with respect to season tickets or bundled se10 ries tickets. 

11 (3) A requirement that a secondary ticket seller 

12 and online resale marketplace disclose upon offering 

13 a ticket for resale— 

14 (A) the distribution method and face value 

15 of each ticket; 

16 (B) the precise location of the seat or 

17 space to which the ticket would entitle the bear18 er, or, if information about the precise location 

19 of the seat or space is not available, descriptive 

20 information about the location of the seat or 

21 space, such as a description of a section or 

22 other area within the venue where the seat or 

23 space is located; 

24 (C) if the secondary ticket seller purchased 

25 the ticket during a public sale of tickets to the 


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1 event, the date and time of the purchase of the 

2 ticket by the secondary ticket seller; and 

3 (D) the number or identifier assigned to 

4 them pursuant to section 4(b). 

5 (4) A requirement that an online resale market6 place post clear and conspicuous notice on the 

7 website of such online resale marketplace that the 

8 website is for the secondary sale of tickets and a re9 quirement that the user confirm having read such 

10 notice before starting any transaction. 

11 (5) A prohibition on the resale of a ticket by an 

12 individual employee of any venue, primary ticket 

13 seller, artist, online resale marketplace, or box office 

14 that is involved in hosting, promoting, performing 

15 in, or selling tickets if such resale— 

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

17 the ticket; or 

18 (B) is made to any third party and the em19 ployee has actual knowledge, or knowledge fair20 ly implied on the basis of objective cir21 cumstances, that the third party intends to sell 

22 the ticket for a higher price than face value of 

23 the ticket. 

24 (6) A requirement that an online resale market25 place disclose to the consumer when the secondary 


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1 ticket seller of a ticket is the primary ticket seller, 

2 venue, or artist associated with the event to which 

3 the ticket relates. 

4 SEC. 4. REGISTRATION OF SECONDARY TICKET SELLERS 

5 AND ONLINE RESALE MARKETPLACES. 

6 (a) REGISTRATION REQUIRED.— 

7 (1) IN GENERAL.—Beginning on the date on 

8 which final regulations are promulgated pursuant to 

9 sections 2 and 3, a secondary ticket seller may not 

10 engage in, and an online resale marketplace may not 

11 permit the use of the marketplace for, the resale of 

12 tickets to events unless the secondary ticket seller or 

13 the online resale marketplace (as the case may be) 

14 registers with the Federal Trade Commission under 

15 this section. 

16 (2) REGISTRATION INFORMATION.—When reg17 istering with the Federal Trade Commission under 

18 paragraph (1), a secondary ticket seller or an online 

19 resale marketplace (as the case may be) shall pro20 vide a viable street address, telephone number, and 

21 email address for the secondary ticket seller or the 

22 online resale marketplace (as the case may be) to 

23 the Commission. 

24 (3) ANNUAL UPDATES.—Any secondary ticket 

25 seller or online resale marketplace registered with 


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1 the Federal Trade Commission under paragraph (1) 

2 shall verify the accuracy of the information required 

3 under paragraph (2) not less frequently than annu4 ally. 

5 (b) REGISTRATION NUMBER.—The Federal Trade 

6 Commission shall assign a unique number or other identi7 fier to each secondary ticket seller and each online resale 

8 marketplace that registers with the Commission under 

9 subsection (a)(1). 

10 SEC. 5. ENFORCEMENT. 

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

12 rule prescribed pursuant to section 2 or 3 or a violation 

13 of section 4(a)(1) shall be treated as a violation of a rule 

14 defining an unfair or deceptive act or practice prescribed 

15 under section 18(a)(1)(B) of the Federal Trade Commis16 sion Act (15 U.S.C. 57a(a)(1)(B)). The Federal Trade 

17 Commission shall enforce this Act in the same manner, 

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

19 though all applicable terms and provisions of the Federal 

20 Trade Commission Act were incorporated into and made 

21 a part of this Act. 

22 (b) STATE ATTORNEYS GENERAL.— 

23 (1) IN GENERAL.—Except as provided in para24 graph (6), in any case in which the attorney general 

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


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1 the residents of that State has been or is threatened 

2 or adversely affected by the engagement of any per3 son in a practice that violates a rule prescribed 

4 under section 2 or 3, the State, as parens patriae, 

5 may bring a civil action on behalf of the residents 

6 of the State in an appropriate district court of the 

7 United States or other court of competent jurisdic8 tion to— 

9 (A) enjoin that practice; 

10 (B) enforce compliance with the rule; 

11 (C) obtain damages, restitution, or other 

12 compensation on behalf of residents of the 

13 State; 

14 (D) obtain penalties provided for under 

15 section 2(b); and 

16 (E) obtain such other relief as the court 

17 may consider to be appropriate. 

18 (2) NOTICE.—The State shall serve written no19 tice to the Commission of any civil action under 

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

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

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

23 except that if it is not feasible for the State to pro24 vide such prior notice, the State shall provide notice 

25 immediately upon instituting such civil action. 


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1 (3) INTERVENTION BY FTC.—Upon receiving 

2 the notice required by paragraph (2), the Commis3 sion may intervene in such civil action and upon in4 tervening— 

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

6 civil action; 

7 (B) remove the action to the appropriate 

8 United States district court; and 

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

10 such civil action. 

11 (4) SAVINGS CLAUSE.—Nothing in this sub12 section shall prevent the attorney general of a State 

13 from exercising the powers conferred on the attorney 

14 general by the laws of such State to conduct inves15 tigations or to administer oaths or affirmations or to 

16 compel the attendance of witnesses or the production 

17 of documentary and other evidence. Nothing in this 

18 section shall prohibit the attorney general of a State, 

19 or other authorized State officer, from proceeding in 

20 State or Federal court on the basis of an alleged vio21 lation of any civil or criminal statute of that State. 

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

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

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

25 which the defendant or a related party is found, 


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1 is an inhabitant, or transacts business, or wher2 ever venue is proper under section 1391 of title 

3 28, United States Code; 

4 (B) process may be served without regard 

5 to the territorial limits of the district or of the 

6 State in which the civil action is instituted; and 

7 (C) a person who participated with a de8 fendant or related party in an alleged violation 

9 that is being litigated in the civil action may be 

10 joined in the civil action without regard to the 

11 residence of the person. 

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

13 civil action or an administrative action has been in14 stituted by or on behalf of the Commission for viola15 tion of any rule described under paragraph (1), no 

16 State may, during the pendency of such action insti17 tuted by or on behalf of the Commission, institute 

18 a civil action under paragraph (1) against any de19 fendant named in the complaint in such action for 

20 violation of any rule as alleged in such complaint. 

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

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

23 State can recover reasonable costs and attorney fees 

24 from the lender or related party. 


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1 SEC. 6. DEFINITIONS. 

2 As used in this Act the following definitions apply: 

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

4 fees, convenience charges, parking fees, and other 

5 charges associated with the purchase of a ticket and 

6 not included in the base price of the ticket. 

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

8 charged for a ticket other than any ancillary 

9 charges. 

10 (3) The term ‘‘box office’’ means a physical lo11 cation where tickets are offered for primary sale. 

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

13 packages of tickets for multiple events that are part 

14 of the same entertainment series. 

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

16 manner in which a primary ticket seller distributes 

17 tickets to a particular event, whether through pri18 mary sale, limited pre sale promotions, donations to 

19 charity, reservations of season ticket holders, or allo20 cated to the primary ticket seller, artist, or venue. 

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

22 of a ticket including both the base price and any an23 cillary charges. 

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

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

26 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 ‘‘ticket’’ means a ticket of ad14 mission to a sporting event, theater, musical per15 formance, or place of public amusement of any kind. 

16 (11) The term ‘‘online resale marketplace’’ 

17 means an Internet website— 

18 (A) that facilitates or enables the resale of 

19 tickets by secondary ticket sellers; or 

20 (B) on which secondary ticket sellers offer 

21 tickets for resale. 

22 (12) The term ‘‘secondary ticket seller’’ means 

23 a person engaged in reselling tickets for an event 

24 and who charges a premium in excess of the face 

25 value. Such term does not include an individual who 


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1 resells fewer than 25 tickets during any 1-year pe2 riod. 

3 SEC. 7. NONPREEMPTION. 

4 Nothing in this Act shall affect the authority of any 

5 State or local government to establish or continue in effect 

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

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

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

9 such provision is inconsistent with this Act or a regulation 

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

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

12 government is not inconsistent with this Act or a regula13 tion promulgated under this Act if such provision provides 

14 equal or greater protection to consumers than the protec15 tion provided under this Act or such regulation. 

Æ 


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