Title: Better Oversight of Secondary Sales and Accountability in Concert Ticketing Act of 2019
Policy area: Commerce

Summary:
Better Oversight of Secondary Sales and Accountability in Concert Ticketing Act of 2019
This bill requires the Federal Trade Commission (FTC) to issue rules regarding transparency in primary and secondary ticket sales. Specifically, the rules must
The bill provides for enforcement of the rules by the FTC and state attorneys general.
The FTC must report on its enforcement actions with respect to the ticket market.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 1850 Introduced in Senate (IS)]

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116th CONGRESS
  1st Session
                                S. 1850

 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 SENATE OF THE UNITED STATES

                             June 13, 2019

Mr. Blumenthal introduced the following bill; which was read twice and 
   referred to the Committee on Commerce, Science, and Transportation

_______________________________________________________________________

                                 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 2019''.

SEC. 2. DEFINITIONS.

    As used in this Act, the following definitions apply:
            (1) The term ``ancillary charges'' means all fees that must 
        be paid in order to secure a ticket from a primary ticket 
        seller or secondary ticket marketplace, including service fees, 
        convenience charges, parking fees, taxes and other charges.
            (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 ``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 advertised date of such sale.
            (7) 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.
            (8) The term ``purchaser'' means any person who purchases a 
        ticket from a primary ticket seller or a secondary ticket sales 
        marketplace.
            (9) The terms ``resale'' or ``secondary sale'', with 
        regards to a ticket, mean any sale of a ticket that occurs 
        after the primary sale of the ticket.
            (10) The term ``secondary ticket sales marketplace'' means 
        a business, including a website, software application for a 
        mobile device, any other digital platform, or portion thereof, 
        of a physical seller whose primary purpose is to facilitate the 
        resale of tickets to purchasers.
            (11) The term ``ticket'' means a ticket of admission to a 
        sporting event, theater, musical performance, or place of 
        public amusement of any kind, including bundled series tickets.

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 and at the box office of such primary 
        ticket seller the total number of tickets offered for sale to 
        the general public 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 the primary ticket seller clearly 
        and conspicuously disclose all ancillary charges to purchasers 
        at the beginning of a transaction before a ticket is selected 
        for purchase. A primary ticket seller shall display the total 
        cost of the ticket including all ancillary charges in all price 
        quotes and advertisements. The price of the ticket may not 
        change during the purchase process.
            (3) A requirement that a primary ticket seller include the 
        total cost of a ticket in including all ancillary charges in 
        any refund of a ticket that is provided for in the primary 
        ticket seller's refund policies.
            (4) A prohibition on restricting the ability of a purchaser 
        who has purchased tickets from a primary ticket seller to 
        resell any such tickets.
            (5) A prohibition on requiring a minimum price for the 
        resale of any tickets purchased from a primary ticket seller.
            (6) A requirement that the primary ticket seller shall 
        disclose any guarantee or refund policy before the completion 
        of the sale of a ticket.

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 and conspicuous statement that the 
                secondary ticket sales marketplace does not possess the 
                ticket; and
                    (B) an explanation of how to obtain a refund from 
                the secondary ticket sales marketplace if the purchaser 
                receives a ticket that does not match the description 
                of the ticket by the secondary ticket sales 
                marketplace.
            (2) A requirement that a secondary ticket sales marketplace 
        disclose to a purchaser when the secondary ticket sales 
        marketplace is also the primary ticket seller, venue, team, or 
        artist associated with the event.
            (3) A requirement that a secondary ticket sales marketplace 
        disclose all ancillary charges to purchasers at the beginning 
        of a transaction before a ticket is selected for purchase. A 
        secondary ticket sales marketplace shall display the total cost 
        of the ticket including all ancillary charges in all price 
        quotes and advertisements. The price of the ticket may not 
        change in the selection or during the purchase process.
            (4) A requirement that a secondary ticket sales marketplace 
        disclose upon offering a ticket for resale--
                    (A) the distribution method and the total cost of 
                each ticket including all ancillary charges;
                    (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, if a secondary ticket sales 
        marketplace guarantees delivery of tickets to a purchaser and 
        fails to deliver such tickets, the secondary ticket sales 
        marketplace shall provide a full refund for the total cost of 
        the ticket, including all ancillary charges, barring non-
        delivery due to causes beyond reasonable control of the seller 
        including a natural disaster, civil disturbance, or otherwise 
        unforeseeable impediment.
            (6) A requirement that the secondary ticket sales 
        marketplace disclose to a person purchasing a ticket any 
        delivery guarantee policy described in paragraph (5) before 
        completion of the sale of the ticket.
            (7) A requirement that a secondary ticket sales 
        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) in the case of an online secondary ticket sales 
                marketplace, post a clear and conspicuous notice that 
                the website or mobile application is engaged in the 
                secondary sale of tickets and require purchasers to 
                confirm having read such notice before registering for 
                an account with the secondary ticket sales marketplace 
                or starting a transaction.
            (8) A prohibition on the secondary sale 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 secondary sale--
                    (A) is for a higher price than the primary sale 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 
                total cost of the ticket, including all ancillary 
                charges.
            (9) A prohibition on the secondary sale of a ticket for the 
        same seat to more than one person at the same time.
            (10) A requirement that no purchaser shall be sanctioned or 
        denied admission to an event on the basis that such purchaser 
        resold a ticket, gifted, or purchased a resold ticket.

SEC. 5. ENFORCEMENT.

    (a) Federal Trade Commission.--A violation of a rule prescribed 
pursuant to section 3 or 4 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 
purchasers than the protection provided under this Act or such 
regulation.

SEC. 7. FTC STUDY OF TICKET MARKET.

    The Federal Trade Commission shall conduct a study of the ticket 
market to determine the effect of the Commissions's enforcement actions 
of the BOTS Act (Public Law 114-274) since it was enacted on December 
14, 2016. The Commission shall transmit a report to Congress that 
details all enforcement actions taken since the enactment of the BOTS 
Act (Public Law 114-274) and assesses the use of fraudulent identities 
to circumvent security measures of a ticket selling website in 
violation of such Act.
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