[Congressional Record Volume 140, Number 118 (Friday, August 19, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: August 19, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                 THE TICKET FEE DISCLOSURE ACT OF 1994

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Michigan [Mr. Dingell] is recognized for 5 minutes.
  Mr. DINGELL. Mr. Speaker, I am pleased to introduce today, along with 
my colleagues, Representative Gary Condit and Representative Al Swift, 
the Ticket Fee Disclosure Act of 1994.
  This legislation will provide American consumers appropriate and 
timely disclosure of convenience fees, service charges, and other 
amounts often added to the face value of entertainment and sporting 
event tickets. An estimated 400 million such tickets were sold last 
year--more than double the amount sold just 3 years ago. As ticket 
sales have increased, so too have the methods used to sell the market 
such tickets. Indeed, with the advent of the communications 
superhighway, sellers of entertainment tickets likely will have many 
additional avenues available to them that are not feasible today.
  This legislation does not inhibit these new and innovative approaches 
nor does it inhibit the growth of the entertainment and sporting 
industries or marketing firms that are associated with such industries. 
Rather, this simple legislation merely seeks to inform the ordinary 
consumer who purchases these tickets of any additional charges or fees 
that are assessed above the face value of any such ticket.
  The Subcommittee on Information, Justice, Transportation, and 
Agriculture, which Representative Condit chairs, recently held hearings 
regarding these and related issues. These hearings have raised 
questions about the competitive nature of firms engaged in ticketing 
practices, some of whom have exclusive contracts with stadiums, 
theaters, and other entertainment venues. While the legislation we 
introduce today does not address these competitive issues--some of 
which are beyond the jurisdiction of the Energy and Commerce 
Committee--the recent hearings have pointed out that ordinary ticket 
consumers may be subjected to increasing convenience or service charges 
levied for the benefit of the ticketing agent or the venue. The 
legislation does not attempt to address the issue of whether any of 
these additional fees are reasonable or justified--indeed, such fees 
could reflect an appropriate value to the consumer for certain services 
provided--but merely seeks to notify the consumer who seeks to purchase 
tickets of the existence and amount of these add-on charges.
  This legislation makes it unlawful for persons who sell or resell 
entertainment or sporting event tickets: One, to fail to disclose to 
the purchaser--prior to the purchase of any such ticket--any fee, 
charge, or other assessment to be imposed in excess of the face amount 
of the ticket, and two, to fail to have the amount of any such fee, 
charge, or assessment printed on the ticket or on a receipt evidencing 
any such ticket sale.
  Under the bill, this Federal prohibition will be enforced by the 
Federal Trade Commission, an independent regulatory agency that has 
authority over unfair and deceptive commercial practices under the 
Federal Trade Commission Act (15 U.S.C. 45 et seq.). As well, State 
attorneys general are empowered under the bill to enforce the 
prohibition on behalf of affected residents in their States. In this 
regard, the bill parallels other commercial practices legislation 
developed by the Committee on Energy and Commerce during the past few 
years, including the Telephone Disclosure and Dispute Resolution Act, 
enacted in 1992, dealing with so-called 900 telephone numbers and other 
pay-per-call services, and the recently enacted Telemarketing and 
Consumer Fraud and Abuse Prevention Act. Under the Federal Trade 
Commission Act, the Commission is authorized to issue cease and desist 
orders in appropriate cases and to impose civil penalties of up to 
$10,000 for each violation of the law.
  This is a modest effort to protect consumers by requiring disclosure. 
I thus cannot imagine that reasonable and responsible businesses will 
object to enactment of this legislation.
  Representative Swift has informed me that hearings on this 
legislation by the Subcommittee on Transportation and Hazardous 
Materials will take place in September. I look forward to prompt 
consideration and enactment of this bill so that American consumers 
will be better informed about add-on charges that they pay for 
entertainment and sporting event tickets.

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