[Congressional Record Volume 170, Number 80 (Wednesday, May 8, 2024)]
[Senate]
[Pages S3602-S3606]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 2035. Mr. CORNYN (for himself and Ms. Klobuchar) submitted an 
amendment intended to be proposed to amendment SA 1911 proposed by Ms. 
Cantwell (for herself, Mr. Cruz, Ms. Duckworth, and Mr. Moran) to the 
bill H.R. 3935, to amend title 49, United States Code, to reauthorize 
and improve the Federal Aviation Administration and other civil 
aviation programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       At the appropriate place, insert the following:

                        TITLE __--FANS FIRST ACT

     SEC. __1. SHORT TITLE.

       This title may be cited as the ``Fans First Act''.

     SEC. __2. DEFINITIONS.

       In this title:
       (1) Affirmative express consent.--The term ``affirmative 
     express consent'' means an affirmative act by a person that 
     clearly communicates that person's freely given, specific, 
     and unambiguous authorization.
       (2) Ancillary fee.--The term ``ancillary fee'' means any 
     additional charge added to the face value of an event ticket, 
     excluding taxes.
       (3) Artist.--The term ``artist'' means any performer, 
     musician, comedian, producer, ensemble, or production entity 
     of a theatrical production, sports team owner, or similar 
     individual or entity that contracts with an event organizer 
     to put on an event.
       (4) Clearly and conspicuously.--The term ``clearly and 
     conspicuously'' means, with respect to a disclosure, that the 
     disclosure is displayed in a manner that is difficult to miss 
     and easily understandable, including in the following ways:
       (A) In the case of a visual disclosure, its size, contrast, 
     location, the length of time it appears, and other 
     characteristics, stand out from any accompanying text or 
     other visual elements so that it is easily noticed, read, and 
     understood.
       (B) The disclosure must be unavoidable.
       (C) The disclosure must use diction and syntax 
     understandable to ordinary consumers and must appear in each 
     language in which the representation that requires the 
     disclosure appears.
       (D) The disclosure must not be contradicted or mitigated 
     by, or inconsistent with, anything else in the communication.
       (5) Commission.--The term ``Commission'' means the Federal 
     Trade Commission.
       (6) Event.--
       (A) In general.--The term ``event'' means a live activity 
     described in subparagraph (B)--
       (i) that is taking place in a venue;
       (ii) that is open to the general public; and
       (iii)(I) that is promoted, advertised, or marketed in 
     interstate commerce; or

       (II) for which event tickets are sold or distributed in 
     interstate commerce.

       (B) Activities described.--The activities described in this 
     subparagraph are any--
       (i) live concert,
       (ii) theatrical performance;
       (iii) sporting event;
       (iv) comedy show; or
       (v) similarly scheduled activity taking place in a venue.
       (C) Exempted events.--Such term shall not include a live 
     activity described in subparagraph (B) that is--
       (i) put on by a religious organization for non-commercial 
     purposes;
       (ii) put on by a K-12 school; or
       (iii) a non-sports-related event put on by a postsecondary 
     school or not-for-profit entity in which the artists are 
     primarily students.
       (7) Event organizer.--The term ``event organizer'' means, 
     with respect to an event, the person (such as the operator of 
     a venue, the sponsor or promoter of an event, a sports team 
     participating in an event or a league whose teams are 
     participating in an event, a theater company, musical group, 
     or similar participant in an event, or an agent for any such 
     person) that--
       (A) is primarily responsible for the financial risk 
     associated with the event;
       (B) makes event tickets initially available, including by 
     contracting with a primary seller; and
       (C)(i) is responsible for organizing, promoting, producing, 
     or presenting an event; or
       (ii) in the case of an event for which tickets are sold, 
     holds the rights to present the event.
       (8) Event ticket.--The term ``event ticket'' means any 
     manifested physical, electronic, or other form of a 
     certificate, document, voucher, token, or other evidence 
     indicating that a person has--
       (A) a license to enter an event venue or occupy a 
     particular seat or area in an event venue with respect to one 
     or more events; or
       (B) an entitlement to purchase such a license with respect 
     to one or more future events.
       (9) Face value.--The term ``face value'' means, with 
     respect to an event ticket, the initial or acquisition price 
     for the primary sale of the event ticket, exclusive of any 
     taxes or ancillary fees.
       (10) Fan club program.--The term ``fan club program'' means 
     a membership-based program, primarily established by venues, 
     artists, or performers to offer pre-sale opportunities 
     offered before public on-sale of tickets.
       (11) Primary sale.--The term ``primary sale'' means, with 
     respect to a particular event ticket, the initial sale of 
     that event ticket by or on behalf of the event organizer,

[[Page S3603]]

     or the sale of an event ticket that was returned to the 
     primary seller or event organizer after its initial sale and 
     is sold by or on behalf of the event organizer under the same 
     terms as such initial sale.
       (12) Primary seller.--The term ``primary seller'' means, 
     with respect to an event ticket, any person who has the right 
     to sell the event ticket prior to or at the primary sale of 
     the ticket, including the event organizer, or any person that 
     provides services to conduct or facilitate the primary sale 
     of event tickets by or on behalf of the event organizer.
       (13) Reseller.--The term ``reseller'' means a person who 
     sells or offers for sale, other than through a primary sale, 
     an event ticket. That a reseller is also an event organizer 
     or a primary seller does not exempt the reseller from this 
     definition.
       (14) Secondary sale.--The term ``secondary sale'' means any 
     sale of an event ticket other than the primary sale of the 
     event ticket, and does not include the sale of a ticket 
     returned to a primary seller.
       (15) Secondary ticketing exchange.-- The term ``secondary 
     ticketing exchange'' means any website, software application, 
     or other digital platform that facilitates or executes the 
     secondary sale of an event ticket. That a secondary ticketing 
     exchange is also an event organizer or a primary seller does 
     not exempt the secondary ticketing exchange from this 
     definition.
       (16) Seller.--The term ``seller'' means any primary seller, 
     secondary ticketing exchange, reseller, or any person that 
     sells or makes available for sale an event ticket to the 
     public.
       (17) Total event ticket price.--The term ``total event 
     ticket price'' means, with respect to an event ticket, the 
     total cost of the event ticket, including the face value 
     price and any ancillary fees but excluding taxes.
       (18) URL.--The term ``URL'' means the Uniform Resource 
     Locator associated with an internet website.
       (19) Venue.--The term ``venue'' means a physical space at 
     which an event takes place.

     SEC. __3. ENSURING TICKETING MARKET INTEGRITY.

       (a) Ban on Deceptive URLs and Improper Use of Intellectual 
     Property.--
       (1) In general.--It shall be unlawful for a secondary 
     ticketing exchange or reseller, or the operator of any 
     website purporting to sell or offer for sale event tickets 
     that links or redirects to a secondary ticketing exchange or 
     reseller, to--
       (A) use any artist name, venue name, or event organizer 
     name, graphic, marketing logo, image or other intellectual 
     property of the artist, venue, or event organizer including 
     any proprietary resemblance of the venue where an event shall 
     occur in promotional materials, social media promotions, or 
     URLs of the secondary ticketing exchange, reseller, or 
     website without the prior authorization of the respective 
     artist, venue, or event organizer under the terms of 
     agreement between the artist, venue, or event organizer and 
     the secondary ticketing exchange, reseller, or website; or
       (B) state or imply that the secondary ticketing exchange, 
     reseller, or website is affiliated with or endorsed by a 
     venue, team, or artist, as applicable, including by using 
     words like ``official'' in promotional materials, social 
     media promotions, search engine optimization, paid 
     advertising, URLs, or search engine monetization unless the 
     secondary ticketing exchange, reseller, or website has the 
     express written consent of the venue, team, or artist, as 
     applicable.
       (2) Permitted use.--Paragraph (1) shall not prohibit a 
     secondary ticketing exchange or reseller from using text 
     containing the name of an artist, venue, or event organizers 
     to describe an event and identify the location at which the 
     event will occur, or provide information identifying the 
     space within the venue that an event ticket would entitle the 
     bearer to occupy for an event.
       (b) Speculative Ticketing Ban.--
       (1) In general.--It shall be unlawful for a reseller to 
     sell, offer for sale, or advertise for sale an event ticket 
     unless the seller has actual or constructive possession of 
     the event ticket.
       (2) Rule of construction.--Nothing in this subsection shall 
     be construed to prohibit any person from offering a service 
     to a consumer to obtain an event ticket on behalf of the 
     consumer provided that the person--
       (A) does not market or list such service as an event 
     ticket;
       (B) lists the price for such service separately from the 
     total event ticket price paid by the service provider for the 
     event ticket in any advertisement, marketing, price list, 
     social media promotion, or other interface that displays a 
     price for such service;
       (C) maintains a clear, distinct, and easily discernible 
     separation between such service and event tickets through 
     unavoidable visual demarcation that persists throughout the 
     entire service selection and purchasing process;
       (D) clearly and conspicuously discloses prior to selection 
     of the service that such service is not an event ticket and 
     that the purchase of such service does not guarantee a ticket 
     to such event;
       (E) shall not obtain tickets through any fan club program;
       (F) shall not obtain more tickets in each transaction than 
     the numerical limitations for tickets set by the venue and 
     artist for each respective event; and
       (G) 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--
       (i) a full refund for the total cost of the service to 
     obtain an event ticket on behalf of the consumer; or
       (ii) subject to availability, a replacement event ticket in 
     the same or a comparable location with the approval of the 
     consumer.
       (c) Requirements for the Sale of Event Tickets.--It shall 
     be unlawful for any seller to sell or offer for sale an event 
     ticket in or affecting commerce, unless the seller does the 
     following:
       (1) All-in pricing.--The seller clearly and conspicuously--
       (A) displays the total event ticket price in any 
     advertisement, marketing, price list, social media promotion, 
     or other interface that displays a price for the event 
     ticket; and
       (B) discloses to any individual who seeks to purchase an 
     event ticket the total event ticket price at the time the 
     ticket is first displayed to the individual and anytime 
     thereafter throughout the ticket purchasing process, 
     including an itemized breakdown of the face value of the 
     event ticket and all applicable taxes and ancillary fees.
       (2) Ticket and refund information.--The seller discloses to 
     any individual who seeks to purchase an event ticket--
       (A) the space within the venue that the event ticket would 
     entitle the bearer to occupy for the event, whether that is 
     general admission or the specific seat or section, at the 
     initial point of ticket selection by the purchaser;
       (B) the seller's refund policies and how to obtain a refund 
     from the seller if--
       (i) the purchaser receives an event ticket that does not 
     match the description of the ticket provided to the purchaser 
     at the point of purchase;
       (ii) the event is canceled or postponed;
       (iii) the event ticket does not or would not grant the 
     purchaser admission to the event;
       (iv) the event ticket is counterfeit; or
       (v) the event ticket was resold in violation of the terms 
     and conditions established by the event organizer or its 
     primary seller;
       (C) the date and means of delivery by which the event 
     ticket will be delivered to the purchaser;
       (D) any restrictions on resale of the event ticket under 
     the terms and conditions of the event ticket; and
       (E) a link to the website created by the Commission under 
     subsection (f)(4) through which individuals may report 
     violations of this section to the Commission.
       (3) Disclosure of terms and conditions.--The seller 
     discloses or provides a link to the full terms and conditions 
     of the event ticket to any individual who seeks to purchase 
     an event ticket prior to the point of purchase.
       (4) Proof of purchase.--If the event ticket is an 
     electronic ticket, the seller delivers written proof of 
     purchase to the purchaser as soon as is practicable and no 
     later than 24 hours following the purchase of the event 
     ticket, which shall include--
       (A) the date and time of the purchase of the event ticket;
       (B) the face value and total purchase price of the event 
     ticket, including all taxes and ancillary fees;
       (C) the space within the venue that the event ticket would 
     entitle the bearer to occupy for the event, whether that is 
     general admission or the specific seat or section;
       (D) the date on which and the means by which the event 
     ticket will be delivered to the purchaser; and
       (E) any restrictions on resale of the event ticket under 
     the terms and conditions of the event ticket.
       (5) Refund requirements.--
       (A) In general.--In the event of an event cancellation, a 
     seller shall provide a purchaser of an event ticket from that 
     seller, at the option of the purchaser, at a minimum a full 
     refund of the total event ticket price plus any taxes paid by 
     the purchaser.
       (B) Exception.--Subparagraph (A) shall not apply where an 
     event is canceled due to a cause beyond the reasonable 
     control of the event organizer, including a natural disaster, 
     civil disturbance, or otherwise unforeseeable impediment.
       (d) Additional Requirements for Secondary Sales.--
       (1) Disclosures to artist and venue.--
       (A) In general.--A secondary ticketing exchange shall, in 
     connection with each secondary sale of an event ticket 
     facilitated or executed by the exchange, provide at a minimum 
     the ticket purchaser the option to opt-in by affirmative 
     express consent to provide the artist and venue the 
     purchaser's name, email address, and phone number for the 
     sole purposes of--
       (i) ensuring the safety and security of the artist, venue 
     staff or property, event attendees, or any other individual 
     or property associated with the event; or
       (ii) allowing the artist or venue to provide the purchaser 
     with information about event postponements or cancellations.
       (B) Provision of information.--If a purchaser provides the 
     affirmative express consent described in subparagraph (A) to 
     a secondary ticketing exchange, the exchange shall provide 
     the information described in such subparagraph to the artist 
     and venue.
       (C) Prohibition on unauthorized uses.--It shall be unlawful 
     for an artist or venue to use information disclosed to the 
     artist or venue in accordance with this paragraph from any 
     purpose other than the purposes described in clauses (i) and 
     (ii) of subparagraph (A), including for promotional purposes.

[[Page S3604]]

       (D) Rule of construction.--Nothing in this paragraph shall 
     be construed to conflict with or preempt existing data 
     privacy laws.
       (2) Notice of secondary sale.--It shall be unlawful for a 
     secondary ticketing exchange to--
       (A) facilitate or execute the secondary sale of an event 
     ticket unless the secondary ticketing exchange clearly and 
     conspicuously discloses--
       (i) that it is not the primary seller of the event ticket 
     at the top of its website, or at a comparable appropriate 
     place on its software application or other digital platform, 
     and at the point of purchase; or
       (ii) if the secondary ticketing exchange also operates as 
     the primary seller with respect to the event ticket, a notice 
     on any page or interface that facilitates the resale of event 
     tickets, that event tickets available on the page or 
     interface are being resold;
       (B) receive the exclusive right to use the artist name, 
     venue name, event organizer name, graphic, marketing logo, 
     image or other intellectual property of the artist, venue, or 
     event organizer in promotional materials, social media 
     promotions, search engine optimization, or in any marketing 
     agreement between the artist, venue, or event organizer and 
     the secondary ticketing exchange, if the secondary ticketing 
     exchange is owned by, controlled by, or under common 
     ownership or control with a person that also operates as a 
     primary seller or event organizer; or
       (C) advertise or represent that it is the primary seller of 
     an event for which it is not the primary seller.
       (e) GAO Studies of Ticketing Market Practices.--
       (1) In general.--One year after the date of enactment of 
     this Act, the Comptroller General of the United States shall 
     release a study on the event ticket market.
       (2) Contents of study.--The study required under paragraph 
     (1) shall include--
       (A) an assessment of how professional resellers obtain 
     event tickets that are subsequently offered for resale, 
     including whether those methods violate the BOTS Act (Public 
     Law 114-274);
       (B) an assessment of event ticket brokers obtaining tickets 
     through fan club, venue pre sales, or credit card rewards 
     programs;
       (C) an assessment of the prevalence of counterfeit or 
     fraudulently sold event tickets and whether incidents of 
     counterfeit or fraudulently sold event tickets are reported 
     to law enforcement agencies by consumers, venues, sellers, or 
     other entities;
       (D) an assessment of the incidence of consumers purchasing 
     event tickets on secondary ticketing exchanges who are 
     subsequently denied entry to the event for which they 
     purchased event tickets;
       (E) an assessment of the percentage of event tickets to 
     events that are acquired by professional resellers for 
     purposes of resale;
       (F) an assessment of the average cost of event tickets in 
     relation to their face value and total event ticket price;
       (G) an assessment of the average cost of concert event 
     tickets sold on the secondary market in relation to their 
     face value and total event ticket price;
       (H) an assessment of the average cost of event tickets in 
     relation to their face value, ancillary fees and total event 
     ticket price in both the primary and secondary markets;
       (I) an assessment of primary and secondary exchange market 
     share, including an estimate of how many tickets are 
     purchased and resold on the same platform and average fees 
     generated in closed-loop ticket resale;
       (J) an assessment of the overall size of the resale market, 
     including percentage of tickets resold and the total monetary 
     volume of the resale market;
       (K) an assessment of consumer use of the resale market, 
     including how often ordinary consumers who intended to go to 
     an event had to resell event tickets and what percentage of 
     face value their event tickets sold for;
       (L) an assessment of the prevalence of exclusive contracts 
     between a primary seller and any venue or artist, including 
     the effect of such exclusive contracts on the market for 
     primary seller services, taking into account averages for 
     events of various types (including but not limited to sports, 
     concerts, fine arts performances) and venues (including but 
     not limited to stadiums, amphitheaters, concert halls, 
     clubs);
       (M) an assessment of event ticket allocation by primary 
     sellers, including the effect of event ticket allocation on 
     event ticket prices, taking into account averages for events 
     of various types (including but not limited to sports, 
     concerts, fine arts performances) and venues (including but 
     not limited to stadiums, amphitheaters, concert halls, 
     clubs);
       (N) an assessment of secondary ticketing exchanges and 
     event ticket brokers offering services to a consumer to 
     obtain an event ticket on behalf of the consumer, including 
     but not limited to whether the platforms and brokers are 
     deploying unfair, unethical, or illegal tactics to acquire 
     such tickets and prevent fans from accessing them at face 
     value;
       (O) an assessment of market manipulation techniques 
     employed by professional resellers, including but not limited 
     to ``buy and hold'' strategies where event tickets purchased 
     for resale are not listed for sale to affect secondary event 
     ticket prices; and
       (P) an assessment of the prevalence of exclusive national 
     touring arrangements between promoters and artists and an 
     assessment of artists represented by managers under shared 
     ownership with promoters and ticketing companies, including 
     how often those artists utilize the services of companies 
     under shared ownership, including ticketing, event 
     organizing, merchandising and venue rental.
       (f) Enforcement by the Commission.--
       (1) FTC act violation.--Any person who violates this 
     section shall be liable for engaging in an unfair or 
     deceptive act or practice under section 5(a)(1) of the 
     Federal Trade Commission Act (15 U.S.C. 45(a)(1)).
       (2) Civil action.--If the Commission has reason to believe 
     that any person has violated this section, the Commission may 
     bring a civil action in an appropriate district court of the 
     United States to--
       (A) recover a civil penalty under paragraph (3); and
       (B) seek other appropriate relief, including injunctive 
     relief.
       (3) Civil penalty.--
       (A) In general.--Any person who violates this section shall 
     be liable for--
       (i) a civil penalty of at least $15,000 for each day during 
     which the violation occurs or continues to occur; and
       (ii) an additional civil penalty equal to the greater of--

       (I) $1,000 per event ticket advertised, listed, sold, or 
     resold in violation of this section; or
       (II) an amount equal to the sum of the total event ticket 
     prices for each event ticket listed or sold in violation of 
     this section, multiplied by 5.

       (B) Enhanced civil penalty for intentional violations.--In 
     addition to the civil penalty under subparagraph (A), a 
     person that intentionally violates this section shall be 
     liable for a civil penalty of at least $10,000 per event 
     ticket sold or resold in violation of this section.
       (4) Complaint website.--
       (A) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Commission shall create a publicly 
     available website where individuals may report violations of 
     this section.
       (B) Cooperation with state ags.--As appropriate, the 
     Commission shall share reports received through the website 
     created under subparagraph (A) with State attorneys general.
       (5) FTC report.--The Commission shall report annually to 
     Congress on enforcement metrics, activity, and effectiveness 
     under this section.
       (g) Enforcement by States.--
       (1) In general.--In any case in which the attorney general 
     of a State has reason to believe that an interest of the 
     residents of the State has been or is threatened or adversely 
     affected by the engagement of any person in a practice that 
     violates this section, the attorney general of the State may, 
     as parens patriae, bring a civil action on behalf of the 
     residents of the State in an appropriate district court of 
     the United States--
       (A) to enjoin further violation of such provision by such 
     person;
       (B) to compel compliance with such provision; and
       (C) to obtain damages, restitution, or other compensation 
     on behalf of such residents.
       (2) Investigatory powers.--Nothing in this section may be 
     construed to prevent the attorney general of a State from 
     exercising the powers conferred on the attorney general by 
     the laws of the State to conduct investigations, to 
     administer oaths or affirmations, or to compel the attendance 
     of witnesses or the production of documentary or other 
     evidence.
       (3) Venue; service of process.--
       (A) Venue.--Any action brought under paragraph (1) may be 
     brought in--
       (i) the district court of the United States that meets 
     applicable requirements relating to venue under section 1391 
     of title 28, United States Code; or
       (ii) another court of competent jurisdiction.
       (B) Service of process.--In an action brought under 
     paragraph (1), process may be served in any district in which 
     the defendant--
       (i) is an inhabitant; or
       (ii) may be found.
       (4) Actions by other state officials.--
       (A) In general.--In addition to civil actions brought by 
     attorneys general under paragraph (1), any other consumer 
     protection officer of a State who is authorized by the State 
     to do so may bring a civil action under paragraph (1), 
     subject to the same requirements and limitations that apply 
     under this subsection to civil actions brought by attorneys 
     general.
       (B) Savings provision.--Nothing in this section may be 
     construed to prohibit an authorized official of a State from 
     initiating or continuing any proceeding in a court of the 
     State for a violation of any civil or criminal law of the 
     State.

     SEC. __4. STRENGTHENING THE BOTS ACT.

       (a) In General.--Section 2 of the Better Online Ticket 
     Sales Act of 2016 (15 U.S.C. 45c) is amended--
       (1) in subsection (a)(1)--
       (A) in subparagraph (A), by striking ``; or'' and inserting 
     a semicolon;
       (B) in subparagraph (B), by striking the period at the end 
     and inserting ``; or''; and
       (C) by adding at the end the following new subparagraph:
       ``(C) to use or cause to be used an application that 
     performs automated tasks to purchase event tickets from an 
     Internet website or online service in circumvention of posted 
     online ticket purchasing order rules of the Internet website 
     or online service, including a software application that 
     circumvents an

[[Page S3605]]

     access control system, security measure, or other 
     technological control or measure.'';
       (2) by redesignating subsections (b) and (c) as subsections 
     (c) and (d), respectively;
       (3) by inserting after subsection (a) the following new 
     subsection:
       ``(b) Requiring Online Ticket Issuers to Put in Place Site 
     Policies and Establish Safeguards to Protect Site Security.--
       ``(1) Requirement to enforce site policies.--Each ticket 
     issuer that owns or operates an Internet website or online 
     service that facilitates or executes the sale of event 
     tickets shall ensure that such website or service has in 
     place an access control system, security measure, or other 
     technological control or measure to enforce posted event 
     ticket purchasing limits.
       ``(2) Requirement to establish site security safeguards.--
       ``(A) In general.--Each ticket issuer that owns or operates 
     an Internet website or online service that facilitates or 
     executes the sale of event tickets shall establish, 
     implement, and maintain reasonable administrative, technical, 
     and physical safeguards to protect the security, 
     confidentiality, integrity, or availability of the website or 
     service.
       ``(B) Considerations.--In establishing the safeguards 
     described in subparagraph (A), each ticket issuer described 
     in such paragraph shall consider--
       ``(i) the administrative, technical, and physical 
     safeguards that are appropriate to the size and complexity of 
     the ticket issuer;
       ``(ii) the nature and scope of the activities of the ticket 
     issuer;
       ``(iii) the sensitivity of any customer information at 
     issue; and
       ``(iv) the range of security risks and vulnerabilities that 
     are reasonably foreseeable or known to the ticket issuer.
       ``(C) Third parties and service providers.--
       ``(i) In general.--Where applicable, a ticket issuer that 
     owns or operates an Internet website or online service that 
     facilitates or executes the sale of event tickets shall 
     implement and maintain procedures to require that any third 
     party or service provider that performs services with respect 
     to the sale of event tickets or has access to data regarding 
     event ticket purchasing on the website or service maintains 
     reasonable administrative, technical, and physical safeguards 
     to protect the security and integrity of the website or 
     service and that data.
       ``(ii) Oversight procedure requirements.--The procedures 
     implemented and maintained by a ticket issuer in accordance 
     with clause (i) shall include the following:

       ``(I) Taking reasonable steps to select and retain service 
     providers that are capable of maintaining appropriate 
     safeguards for the customer information at issue.
       ``(II) Requiring service providers by contract to implement 
     and maintain adequate safeguards.
       ``(III) Periodically assessing service providers based on 
     the risk they present and the continued adequacy of their 
     safeguards.

       ``(D) Updates.--A ticket issuer that owns or operates an 
     Internet website or online service that facilitates or 
     executes the sale of event tickets shall regularly evaluate 
     and make adjustments to the safeguards described in 
     subparagraph (A) in light of any material changes in 
     technology, internal or external threats to system security, 
     confidentiality, integrity, and availability, and the 
     changing business arrangements or operations of the ticket 
     issuer.
       ``(3) Requirement to report incidents of circumvention; 
     consumer complaints.--
       ``(A) In general.--A ticket issuer that owns or operates an 
     Internet website or online service that facilitates or 
     executes the sale of event tickets shall report to the 
     Commission any incidents of circumvention of which the ticket 
     issuer has actual knowledge.
       ``(B) Consumer complaint website.--Not later than 180 days 
     after the date of enactment of the Fans First Act, the 
     Commission shall create a publicly available website (or 
     modify an existing publicly available website of the 
     Commission) to allow individuals to report violations of this 
     subsection to the Commission.
       ``(C) Reporting timeline and process.--
       ``(i) Timeline.--A ticket issuer shall report known 
     incidents of circumvention within a reasonable period of time 
     after the incident of circumvention is discovered by the 
     ticket issuer, and in no case later than 30 days after an 
     incident of circumvention is discovered by the ticket issuer.
       ``(ii) Automated submission.--The Commission may establish 
     a reporting mechanism to provide for the automatic submission 
     of reports required under this subsection.
       ``(iii) Coordination with state attorneys general.--The 
     Commission shall--

       ``(I) share reports received from ticket issuers under 
     subparagraph (A) with State attorneys general as appropriate; 
     and
       ``(II) share consumer complaints submitted through the 
     website established under subparagraph (B) with State 
     attorneys general as appropriate.

       ``(4) Duty to address causes of circumvention.--A ticket 
     issuer that owns or operates an Internet website or online 
     service that facilitates or executes the sale of event 
     tickets must take reasonable steps to improve its access 
     control systems, security measures, and other technological 
     controls or measures to address any incidents of 
     circumvention of which the ticket issuer has actual 
     knowledge.
       ``(5) FTC guidance.--Not later than 1 year after the date 
     of enactment of the Fans First Act, the Commission shall 
     publish guidance for ticket issuers on compliance with the 
     requirements of this subsection.'';
       (4) in subsection (c), as redesignated by paragraph (1) of 
     this subsection--
       (A) by striking ``subsection (a)'' each place it appears 
     and inserting ``subsection (a) or (b)'';
       (B) in paragraph (2)--
       (i) in subparagraph (A), by striking ``The Commission'' and 
     inserting ``Except as provided in paragraph (3), the 
     Commission''; and
       (ii) in subparagraph (B), by striking ``Any person'' and 
     inserting ``Subject to paragraph (3), any person''; and
       (C) by adding at the end the following new paragraphs:
       ``(3) Civil action.--
       ``(A) In general.--If the Commission has reason to believe 
     that any person has committed a violation of subsection (a) 
     or (b), the Commission may bring a civil action in an 
     appropriate district court of the United States to--
       ``(i) recover a civil penalty under paragraph (4); and
       ``(ii) seek other appropriate relief, including injunctive 
     relief and other equitable relief.
       ``(B) Litigation authority.--Except as otherwise provided 
     in section 16(a)(3) of the Federal Trade Commission Act (15 
     U.S.C. 56(a)(3)), the Commission shall have exclusive 
     authority to commence or defend, and supervise the litigation 
     of, any civil action authorized under this paragraph and any 
     appeal of such action in its own name by any of its attorneys 
     designated by it for such purpose, unless the Commission 
     authorizes the Attorney General to do so. The Commission 
     shall inform the Attorney General of the exercise of such 
     authority and such exercise shall not preclude the Attorney 
     General from intervening on behalf of the United States in 
     such action and any appeal of such action as may be otherwise 
     provided by law.
       ``(C) Rule of construction.--Any civil penalty or relief 
     sought through a civil action under this paragraph shall be 
     in addition to other penalties and relief as may be 
     prescribed by law.
       ``(4) Civil penalties.--
       ``(A) In general.--Any person who violates subsection (a) 
     or (b) shall be liable for--
       ``(i) a civil penalty of not less than $10,000 for each day 
     during which the violation occurs or continues to occur; and
       ``(ii) an additional civil penalty of not less than $1,000 
     per violation.
       ``(B) Enhanced civil penalty for intentional violations.--
     In addition to the civil penalties under subparagraph (A), a 
     person that intentionally violates subsection (a) or (b) 
     shall be liable for a civil penalty of not less than $10,000 
     per violation.'';
       (5) in subsection (d), as redesignated by paragraph (1) of 
     this subsection, by striking ``subsection (a)'' each place it 
     appears and inserting ``subsection (a) or (b)''; and
       (6) by adding at the end the following new subsections:
       ``(e) Law Enforcement Coordination.--
       ``(1) In general.--The Federal Bureau of Investigation, the 
     Department of Justice, and other relevant State or local law 
     enforcement officials shall coordinate as appropriate with 
     the Commission to share information about known instances of 
     cyberattacks on security measures, access control systems, or 
     other technological controls or measures on an Internet 
     website or online service that are used by ticket issuers to 
     enforce posted event ticket purchasing limits or to maintain 
     the integrity of posted online ticket purchasing order rules. 
     Such coordination may include providing information about 
     ongoing investigations but may exclude classified information 
     or information that could compromise a law enforcement or 
     national security effort, as appropriate.
       ``(2) Cyberattack defined.--In this paragraph, the term 
     `cyberattack' means an attack, via cyberspace, targeting an 
     enterprise's use of cyberspace for the purpose of--
       ``(A) disrupting, disabling, destroying, or maliciously 
     controlling a computing environment or computing 
     infrastructure; or
       ``(B) destroying the integrity of data or stealing 
     controlled information.
       ``(f) Congressional Report.--Not later than 1 year after 
     the date of enactment of this paragraph, the Commission shall 
     report to Committee on Commerce, Science, and Transportation 
     of the Senate and the Committee on Energy and Commerce of the 
     House of Representatives on the status of enforcement actions 
     taken pursuant to this Act, as well as any identified 
     limitations to the Commission's ability to pursue incidents 
     of circumvention described in subsection (a)(1)(A).''.
       (b) Additional Definition.--Section 3 of the Better Online 
     Ticket Sales Act of 2016 (15 U.S.C. 45c note) is amended by 
     adding at the end the following new paragraph:
       ``(4) Circumvention.--The term `circumvention' means the 
     act of avoiding, bypassing, removing, deactivating, or 
     otherwise impairing an access control system, security 
     measure, safeguard, or other technological control or measure 
     described in section 2(b)(1).''.

     SEC. __5. SEVERABILITY.

       If any provision of this title, or the application of such 
     provision to any person or circumstance is held to be 
     unconstitutional, the remainder of this title and of the 
     amendments made by this title, and the application of the 
     remaining provisions of this title and

[[Page S3606]]

     amendments to any person or circumstance, shall not be 
     affected.
                                 ______