114 HR 6568 IH: Speculative Ticketing Oversight and Prohibition Act
U.S. House of Representatives
2023-12-04
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I
118th CONGRESS
1st Session
H. R. 6568
IN THE HOUSE OF REPRESENTATIVES
December 4, 2023
Mr. Armstrong (for himself, Ms. Schakowsky, and Mr. Bilirakis) introduced the following bill; which was referred to the Committee on Energy and Commerce
A BILL
To prohibit speculative ticketing as an unfair or deceptive act or practice, and for other purposes.
1.

Short title
This Act may be cited as the “Speculative Ticketing Oversight and Prohibition Act” or the “STOP Act of 2023”.
2.

Speculative ticketing ban
(a)

Prohibition
Beginning 180 days after the date of the enactment of this Act, a ticket issuer, secondary market ticket issuer, or secondary market ticket exchange that does not have actual or constructive possession of an event ticket shall not sell, offer for sale, or advertise for sale of such event ticket.
(b)

Rule of construction
Nothing in this section shall be construed to prohibit a secondary market ticket issuer or secondary market ticket exchange from offering a service to a consumer to obtain an event ticket on behalf of the consumer if the secondary market ticket issuer or secondary market ticket exchange complies with the following:
(1)
Does not market or list the service as an event ticket.
(2)
Maintains a clear, distinct, and easily discernible separation between the service and event tickets through unavoidable visual demarcation that persists throughout the entire service selection and purchasing process.
(3)
Clearly and conspicuously discloses before selection of the service that the service is not an event ticket and that the purchase of the service does not guarantee an event ticket.
(4)
In the event the service is unable to obtain the specified event ticket purchased through the service for the consumer, provides the consumer that purchased the service, within a reasonable amount of time—
(A)
a full refund for the total cost of the service to obtain an event ticket on behalf of the consumer; or
(B)
subject to availability, a replacement event ticket in the same or a comparable location with the approval of the consumer.
(5)
Does not obtain more tickets in each transaction than the numerical limitations for tickets set by the venue and artist for each respective event.
3.

Deceptive websites
A ticket issuer, secondary market ticket issuer, or secondary market ticket exchange—
(1)
shall provide a clear and conspicuous statement, before a visitor purchases an event ticket from the ticket issuer, secondary market ticket issuer, or secondary market ticket exchange that the issuer or exchange is engaged in the secondary sale of event tickets;
(2)
shall not state that the ticket issuer, secondary market ticket issuer, or secondary market ticket exchange is affiliated with or endorsed by a venue, team, or artist, as applicable, unless a partnership agreement has been executed, including by using words like “official” in promotional materials, social media promotions, search engine optimization, paid advertising, or search engine monetization unless the issuer or exchange has the express written consent of the venue, team, or artist, as applicable; and
(3)
shall not use a domain name, or any subdomain thereof, in the URL of the ticket issuer, secondary market ticket issuer, or secondary market ticket exchange that contains—
(A)
the name of a specific team, league, or venue where concerts, sports, or other live entertainment events are held, unless authorized by the owner of the name;
(B)
the name of the exhibition or performance or of another event described in subparagraph (A), including the name of a person, team, performance, group, or entity scheduled to perform at any such venue or event, unless authorized by the owner of the name;
(C)
any trademark or copyright not owned by the ticket issuer, secondary market ticket issuer, or secondary market ticket exchange, including any trademark or copyright owned by an authorized agent or partner of the venue or event identified in subparagraphs (A) and (B); or
(D)
any name substantially similar to those described in subparagraphs (A) and (B), including any misspelling of any such name.
4.

Refund requirements
(a)

Cancellation
Beginning 180 days after the date of the enactment of this Act, if an event is canceled or postponed (except for a case in which an event is canceled due to a cause beyond the reasonable control of the ticket issuer, including a natural disaster, civil disturbance, or otherwise unforeseeable impediment), a ticket issuer, secondary market ticket issuer, or secondary market ticket exchange shall provide the consumer, at the option of the purchaser, at a minimum—
(1)
a full refund for the total cost of the event ticket, any event ticket fee, and any tax; or
(2)
subject to availability, if the event is postponed, a replacement event ticket, in the same or a comparable location, once the event has been rescheduled, with the approval of the consumer.
(b)

Disclosure of guarantee and refund policy required
Beginning 180 days after the date of the enactment of this Act, a ticket issuer, secondary market ticket issuer, or secondary market ticket exchange shall disclose clearly and conspicuously before the completion of an event ticket sale the guarantee or refund policy of such ticket issuer, secondary market ticket issuer, or secondary market ticket exchange, including under what circumstances any refund issued will include a refund of any event ticket fee and any tax.
(c)

Disclosure of how To obtain a refund required
Beginning 180 days after the date of the enactment of this Act, a ticket issuer, secondary market ticket issuer, or secondary market ticket exchange shall provide a clear and conspicuous explanation of how to obtain a refund of the total cost of the ticket, any event ticket fee, and any tax.
5.

Report by the Federal Trade Commission on Bots Act of 2016 enforcement
Not later than 6 months after the date of the enactment of this Act, the Commission shall submit to Congress a report on enforcement of the Better Online Ticket Sales Act of 2016 (Public Law 114–274; 15 U.S.C. 45c), including any enforcement action taken, challenges with enforcement and coordination with State Attorneys General, and recommendations on how to improve enforcement and industry compliance.
6.

Enforcement by the Federal trade commission
(a)

Unfair or deceptive act or practice
A violation of this Act shall be treated as a violation of a regulation defining an unfair or deceptive act or practice under section 18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
(b)

Powers of commission
The Commission shall enforce this Act in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade Commission Act (15 U.S.C. 41 et seq.) were incorporated into and made a part of this Act.
(c)

Privileges and immunities
Any person who violates this Act shall be subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade Commission Act (15 U.S.C. 41 et seq.).
(d)

Authority preserved
Nothing in this Act shall be construed to limit the authority of the Commission under any other provision of law.
7.

Definitions
In this Act:
(1)

Artist
The term artist means any performer, musician, comedian, producer, ensemble or production entity of a theatrical production, sports team owner, or similar person.
(2)

Commission
The term Commission means the Federal Trade Commission.
(3)

Domain name
The term domain name means a globally unique, hierarchical reference to an internet host or service, which is assigned through centralized internet naming authorities, and which is comprised of a series of character strings separated by periods, with the right most string specifying the top of the hierarchy.
(4)

Event; event ticket; ticket issuer
The terms event, event ticket, and ticket issuer have the meaning given those terms in the Better Online Ticket Sales Act of 2016 (Public Law 114–274).
(5)

Event ticket fee
The term event ticket fee—
(A)
means a charge that must be paid in addition to the base event ticket price in order to obtain an event ticket from a ticket issuer, secondary market ticket issuer, or secondary market ticket exchange including any service fee, charge and order processing fee, delivery fee, facility charge fee, and any other charge; and
(B)
does not include any charge or fee for an optional product or service associated with the event that may be selected by a purchaser of an event ticket.
(6)

Optional product or service
The term optional product or service means a product or service that an individual does not need to purchase to use or take possession of an event ticket.
(7)

Resale; secondary sale
The terms resale and secondary sale mean any sale of an event ticket that occurs after the initial sale of the event ticket by a ticket issuer.
(8)

Secondary market ticket exchange
The term secondary market ticket exchange means any person that operates a platform or exchange for advertising, listing, or selling resale tickets, on behalf of itself, vendors, or a secondary market ticket issuer.
(9)

Secondary market ticket issuer
The term secondary market ticket issuer means any person, including a ticket issuer, that resells or makes a secondary sale of an event ticket to the general public in the regular course of the trade or business of the person.
(10)

URL
The term URL means the uniform resource locator associated with an internet website.
(11)

Venue
The term venue means a physical space at which an event takes place.