[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2669 Introduced in House (IH)]

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.

    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 2009''.

SEC. 2. 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 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.

SEC. 3. RULES FOR SECONDARY 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 secondary sale, 
distribution, and pricing of tickets:
            (1) A requirement that if the secondary ticket seller does 
        not possess the ticket at the time of the sale that such 
        secondary ticket seller provide--
                    (A) a clear statement that the secondary ticket 
                seller 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 seller if the ticket the purchaser ultimately 
                receives does not match the description of the ticket 
                by the secondary ticket seller.
            (2) A prohibition on the purchase by a secondary ticket 
        seller of a ticket during the first 48 hours after such ticket 
        is first available for primary sale. The prohibition in this 
        paragraph shall not apply with respect to season tickets or 
        bundled series tickets.
            (3) A requirement that a secondary ticket seller 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;
                    (C) if the secondary ticket seller 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 seller; and
                    (D) the number or identifier assigned to them 
                pursuant to section 4(b).
            (4) A requirement that an online resale marketplace 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.
            (5) A prohibition on the resale of a ticket by an 
        individual employee of any venue, primary ticket seller, 
        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.
            (6) A requirement that an online resale marketplace 
        disclose to the consumer when the secondary ticket seller of a 
        ticket is the primary ticket seller, venue, or artist 
        associated with the event to which the ticket relates.

SEC. 4. REGISTRATION OF SECONDARY TICKET SELLERS AND ONLINE RESALE 
              MARKETPLACES.

    (a) Registration Required.--
            (1) In general.--Beginning on the date on which final 
        regulations are promulgated pursuant to sections 2 and 3, a 
        secondary ticket seller may not engage in, and an online resale 
        marketplace may not permit the use of the marketplace for, the 
        resale of tickets to events unless the secondary ticket seller 
        or the online resale marketplace (as the case may be) registers 
        with the Federal Trade Commission under this section.
            (2) Registration information.--When registering with the 
        Federal Trade Commission under paragraph (1), a secondary 
        ticket seller or an online resale marketplace (as the case may 
        be) shall provide a viable street address, telephone number, 
        and email address for the secondary ticket seller or the online 
        resale marketplace (as the case may be) to the Commission.
            (3) Annual updates.--Any secondary ticket seller or online 
        resale marketplace registered with the Federal Trade Commission 
        under paragraph (1) shall verify the accuracy of the 
        information required under paragraph (2) not less frequently 
        than annually.
    (b) Registration Number.--The Federal Trade Commission shall assign 
a unique number or other identifier to each secondary ticket seller and 
each online resale marketplace that registers with the Commission under 
subsection (a)(1).

SEC. 5. ENFORCEMENT.

    (a) Federal Trade Commission.--A violation of a rule prescribed 
pursuant to section 2 or 3 or a violation of section 4(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 2 or 3, 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;
                    (D) obtain penalties provided for under section 
                2(b); and
                    (E) 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.

SEC. 6. 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 pre 
        sale promotions, donations to charity, reservations of season 
        ticket holders, or allocated to the primary ticket seller, 
        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 ``ticket'' means a ticket of admission to a 
        sporting event, theater, musical performance, or place of 
        public amusement of any kind.
            (11) The term ``online resale marketplace'' means an 
        Internet website--
                    (A) that facilitates or enables the resale of 
                tickets by secondary ticket sellers; or
                    (B) on which secondary ticket sellers offer tickets 
                for resale.
            (12) The term ``secondary ticket seller'' means a person 
        engaged in reselling tickets for an event and who charges a 
        premium in excess of the face value. Such term does not include 
        an individual who resells fewer than 25 tickets during any 1-
        year period.

SEC. 7. 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.
                                 <all>