[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.
______