I 
114TH CONGRESS 
2D SESSION 
H. R. 5245 
To direct the Federal Trade Commission to prescribe rules to protect con-
sumers 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 Representa-
tives 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: 
VerDate Sep 11 2014 
04:37 May 17, 2016
Jkt 059200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H5245.IH
H5245
emcdonald on DSK67QTVN1PROD with BILLS
(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 lo-
cation 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 pri-
mary sale, limited presale promotions, donations to 
charity, reservations of season ticket holders, or allo-
cated 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 an-
cillary 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 
VerDate Sep 11 2014 
04:37 May 17, 2016
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H5245.IH
H5245
emcdonald on DSK67QTVN1PROD with BILLS
seller to the general public on or after the date ad-
vertised 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, oper-
ator, manager, or provider) that engages in the pri-
mary sale of tickets for an event or retains the au-
thority 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 market-
place’’ 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 ad-
mission to a sporting event, theater, musical per-
formance, 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 promul-
VerDate Sep 11 2014 
04:37 May 17, 2016
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H5245.IH
H5245
emcdonald on DSK67QTVN1PROD with BILLS
gate 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 avail-
able 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 pri-
mary sale, the total number and distribution method 
of all tickets not made available for sale to the gen-
eral public, the distribution of which is the responsi-
bility 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 pro-
motional material where the ticket price is listed, all 
ancillary charges related to the purchase of a ticket, 
VerDate Sep 11 2014 
04:37 May 17, 2016
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H5245.IH
H5245
emcdonald on DSK67QTVN1PROD with BILLS
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 re-
fund 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 con-
sumer not later than 1 week prior to the event. 
SEC. 4. RULES FOR SECONDARY TICKET SALES MARKET-
PLACES. 
Not later than 180 days after the date of enactment 
of this Act, the Federal Trade Commission shall promul-
gate 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, distribu-
tion, and pricing of tickets: 
(1) A requirement that if the secondary ticket 
sales marketplace does not possess the ticket at the 
VerDate Sep 11 2014 
04:37 May 17, 2016
Jkt 059200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H5245.IH
H5245
emcdonald on DSK67QTVN1PROD with BILLS
(B) the precise location of the seat or 
space to which the ticket would entitle the bear-
er, 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 market-
place 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 market-
place— 
(A) not make any representation of affili-
ation 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 
VerDate Sep 11 2014 
04:37 May 17, 2016
Jkt 059200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H5245.IH
H5245
emcdonald on DSK67QTVN1PROD with BILLS
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, per-
forming 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 em-
ployee has actual knowledge, or knowledge fair-
ly implied on the basis of objective cir-
cumstances, 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 market-
place 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 
VerDate Sep 11 2014 
04:37 May 17, 2016
Jkt 059200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H5245.IH
H5245
emcdonald on DSK67QTVN1PROD with BILLS
under section 18(a)(1)(B) of the Federal Trade Commis-
sion 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 para-
graph (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 per-
son 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 jurisdic-
tion 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 
VerDate Sep 11 2014 
04:37 May 17, 2016
Jkt 059200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H5245.IH
H5245
emcdonald on DSK67QTVN1PROD with BILLS
(D) obtain such other relief as the court 
may consider to be appropriate. 
(2) NOTICE.—The State shall serve written no-
tice 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 pro-
vide 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 Commis-
sion may intervene in such civil action and upon in-
tervening— 
(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 sub-
section 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 inves-
tigations or to administer oaths or affirmations or to 
VerDate Sep 11 2014 
04:37 May 17, 2016
Jkt 059200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H5245.IH
H5245
emcdonald on DSK67QTVN1PROD with BILLS
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 vio-
lation 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 wher-
ever 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 de-
fendant 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 in-
stituted by or on behalf of the Commission for viola-
tion of any rule described under paragraph (1), no 
VerDate Sep 11 2014 
04:37 May 17, 2016
Jkt 059200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H5245.IH
H5245
emcdonald on DSK67QTVN1PROD with BILLS
State may, during the pendency of such action insti-
tuted by or on behalf of the Commission, institute 
a civil action under paragraph (1) against any de-
fendant 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 dis-
trict court and may recover from such person damages 
for such injury plus $1,000 for each requirement or pro-
hibited act set forth in such sections that such person vio-
lated 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 
VerDate Sep 11 2014 
04:37 May 17, 2016
Jkt 059200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H5245.IH
H5245
emcdonald on DSK67QTVN1PROD with BILLS
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 regula-
tion promulgated under this Act if such provision provides 
equal or greater protection to consumers than the protec-
tion 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. 
Æ 
VerDate Sep 11 2014 
04:37 May 17, 2016
Jkt 059200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6301
E:\BILLS\H5245.IH
H5245
emcdonald on DSK67QTVN1PROD with BILLS