[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.
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