HR 950 IHCommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

1st SessionCommentsClose CommentsPermalink

H. R. 950CommentsClose CommentsPermalink

To prohibit restrictions on the resale of event tickets sold in interstate commerce as an unfair or deceptive act or practice.CommentsClose CommentsPermalink

IN THE HOUSE OF REPRESENTATIVESCommentsClose CommentsPermalink

March 8, 2011CommentsClose CommentsPermalink

Mr. MATHESON (for himself and Mr. TERRY) introduced the following bill; which was referred to the Committee on Energy and CommerceCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To prohibit restrictions on the resale of event tickets sold in interstate commerce as an unfair or deceptive act or practice.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Ticket Act’.CommentsClose CommentsPermalink

SEC. 2. FINDINGS.

Congress finds the following:CommentsClose CommentsPermalink





(1) Sponsors and promoters of major music, sporting, and theatrical events are increasingly seeking to control the resale of tickets to such events in the secondary market, by employing restrictive State laws, imposing and enforcing onerous contractual or license terms, and imposing technological barriers on ticket resale.CommentsClose CommentsPermalink





(2) Such restrictions and downstream controls substantially impede interstate commerce in event tickets, drive up ticket prices, reduce availability of tickets to interested purchasers, narrow the choices available to the public, and are unfair to consumers.CommentsClose CommentsPermalink





(3) Eliminating such restrictions and applying free market principles to the secondary market in event tickets would encourage a robust competitive marketplace in such tickets, would promote the healthy growth of electronic commerce in such tickets in online marketplaces, and would be in the best interests of ticket purchasers, fans, and the general public.CommentsClose CommentsPermalink





(4) Purchasers of event tickets, whether in the primary or secondary ticket markets, are entitled to minimum consumer protection standards, including provisions for full refunds of ticket purchases in appropriate circumstances.CommentsClose CommentsPermalink





(5) In order to achieve a nationwide free market in resale of event tickets, Congress must act to preempt State or local laws that unjustifiably restrict such resales, while preserving State and local authority to legislate or regulate to prevent fraud, maintain public order, or vindicate other legitimate State and local interests.CommentsClose CommentsPermalink

SEC. 3. DEFINITIONS.

In this Act:CommentsClose CommentsPermalink





(1) COMMISSION- The term ‘Commission’ means the Federal Trade Commission.CommentsClose CommentsPermalink





(2) EVENT- The term ‘event’ means any concert, theatrical performance, sporting event, exhibition, show, or similar scheduled activity, taking place in a venue with a seating or attendance capacity exceeding 1,000 persons--CommentsClose CommentsPermalink





(A) that is open to the general public;CommentsClose CommentsPermalink





(B) for which an admission fee is charged; andCommentsClose CommentsPermalink





(C) that is promoted, advertised, or marketed in interstate commerce or for which event tickets are generally sold in interstate commerce.CommentsClose CommentsPermalink





(3) EVENT TICKET- The term ‘event ticket’ means any physical, electronic, or other form of a certificate, document, voucher, token, or other evidence indicating that the bearer, possessor, or person entitled to possession through purchase or otherwise has--CommentsClose CommentsPermalink





(A) a revocable or irrevocable right, privilege, or license to enter an event venue or occupy a particular seat or area in an event venue with respect to one or more events; orCommentsClose CommentsPermalink





(B) an entitlement to purchase such a right, privilege, or license with respect to one or more future events.CommentsClose CommentsPermalink





(4) PERSON- The term ‘person’ means any natural person, partnership, corporation, association, or other legal entity, including any person acting under color or authority of State law.CommentsClose CommentsPermalink





(5) RESALE- The term ‘resale’ includes any form of transfer, or offering to transfer, of possession or entitlement to possession of an event ticket from one person to another, with or without consideration, whether in person or by means of telephone, mail, delivery service, facsimile, Internet, email, or other electronic means. The term ‘resale’ does not include the initial sale of an event ticket by the ticket issuer.CommentsClose CommentsPermalink





(6) STATE- The term ‘State’ means any of the several States, the District of Columbia, the Commonwealth of Puerto Rico, or any other territory or possession of the United States.CommentsClose CommentsPermalink





(7) TICKET ISSUER- The term ‘ticket issuer’ means any person that first makes event tickets available, directly or indirectly, to the general public, and may include--CommentsClose CommentsPermalink





(A) the operator of a venue;CommentsClose CommentsPermalink





(B) the sponsor or promoter of an event;CommentsClose CommentsPermalink





(C) a sports team participating in an event or a league whose teams are participating in an event;CommentsClose CommentsPermalink





(D) a theater company, musical group or similar participant in an event; orCommentsClose CommentsPermalink





(E) an agent of any such person.CommentsClose CommentsPermalink





(8) VENUE- The term ‘venue’ means the theater, stadium, field, hall, or other facility where an event takes place.CommentsClose CommentsPermalink

SEC. 4. PROHIBITION.

(a) Unlawful Conduct- Except as otherwise provided in this Act, it shall be unlawful for any ticket issuer to prohibit or restrict the resale or offering for resale of an event ticket by a lawful possessor thereof.CommentsClose CommentsPermalink





(b) Activities Described- Activities prohibited to ticket issuers by this Act include--CommentsClose CommentsPermalink





(1) purporting to impose license or contractual terms on the initial sale of event tickets (including terms printed on the back of a physical ticket) that prohibit resale of the ticket, or restrict the price or other terms and conditions under which a ticket may be resold;CommentsClose CommentsPermalink





(2) requiring the purchaser of a ticket, whether for a single event or for a series or season of events, to agree not to resell the ticket, or to resell the ticket only through a specific channel approved by the ticket issuer;CommentsClose CommentsPermalink





(3) bringing legal action, based on an unlawful prohibition or restriction on resale of an event ticket, against--CommentsClose CommentsPermalink





(A) a purchaser who resells or offers to resell an event ticket without permission of the ticket issuer, or in violation of a restriction purportedly imposed by the ticket issuer;CommentsClose CommentsPermalink





(B) persons who facilitate or provide services for the resale of event tickets without such permission or in alleged violation of such a restriction; orCommentsClose CommentsPermalink





(C) the operator of a physical or electronic marketplace in which a ticket is offered for resale without such permission or in alleged violation of such a restriction;CommentsClose CommentsPermalink





(4) imposing any penalty on a ticket purchaser who resells or offers to resell an event ticket without permission or in violation of a restriction purportedly imposed by the ticket issuer, or treating such a purchaser in any material way less favorably than a similarly situated purchaser who does not resell or offer to resell an event ticket, or who complies with resale restrictions purportedly imposed by the ticket issuer;CommentsClose CommentsPermalink





(5) employing technological means, including any means of promoting, carrying out, documenting or verifying sales of event tickets, or of controlling entry to venues by lawful possessors of event tickets, that have the effect of prohibiting or restricting the ability of purchasers to resell such tickets; orCommentsClose CommentsPermalink





(6) seeking to limit or restrict the price, or to impose a minimum or maximum price, at which an event ticket may be resold.CommentsClose CommentsPermalink

SEC. 5. CONSUMER PROTECTION MINIMUM STANDARDS.

(a) Unlawful Conduct- It shall be unlawful for any person to engage in the primary or resale market for event ticket sales in any manner specified in subsection (b) without complying with the consumer protection minimum standards specified in this section with regard to event ticket sales.CommentsClose CommentsPermalink





(b) Application- This section applies to all persons engaged in the trade or business of--CommentsClose CommentsPermalink





(1) acting as a ticket issuer;CommentsClose CommentsPermalink





(2) engaging in the resale of event tickets, except in the case of an individual engaged in resales of no more than 25 tickets in any one year; orCommentsClose CommentsPermalink





(3) providing a physical or electronic marketplace for the sale or resale of event tickets by other persons.CommentsClose CommentsPermalink





(c) Compliance- A person subject to this section may comply with its provisions by conducting its sales or resales of event tickets in a physical or electronic marketplace that provides the consumer protection minimum standards specified in this section.CommentsClose CommentsPermalink





(d) General Requirements- All persons subject to this section shall--CommentsClose CommentsPermalink





(1) maintain a toll-free telephone number for complaints and inquiries regarding its activities in the sale or resale of event tickets; andCommentsClose CommentsPermalink





(2) implement and reasonably publicize a standard refund policy that meets the minimum standards stated in subsection (d).CommentsClose CommentsPermalink





(e) Requirements of Refund Policy- The standard refund policy described in subsection (c)--CommentsClose CommentsPermalink





(1) shall provide a consumer who purchases an event ticket from the person a full refund if--CommentsClose CommentsPermalink





(A) the event is canceled before the scheduled occurrence of the event, and is not rescheduled;CommentsClose CommentsPermalink





(B) the event ticket sold by the person and received by the purchaser is counterfeit;CommentsClose CommentsPermalink





(C) the event ticket has been canceled by the ticket issuer for nonpayment by the original purchaser, or for any reason other than an act or omission of the consumer;CommentsClose CommentsPermalink





(D) the event ticket materially and to the detriment of the consumer fails to conform to the description provided by the seller; orCommentsClose CommentsPermalink





(E) the event ticket was not delivered to the consumer prior to the occurrence of the event, unless such failure of delivery was due to any act or omission of the consumer;CommentsClose CommentsPermalink





(2) shall include in a full refund the full price paid by the consumer for the event ticket, together with any fees charged in connection with that purchase, including convenience fees, processing fees, at-home printing charges, shipping and handling charges, or delivery fees; andCommentsClose CommentsPermalink





(3) may condition entitlement to a refund upon timely return of the ticket purchased, and may include reasonable safeguards against abuse of the policy.CommentsClose CommentsPermalink





(f) Requirements as Minimum Requirements- Nothing in this section shall be construed to prohibit any person subject to this section from implementing consumer protection policies that exceed the minimum standard set forth in this section, and that are otherwise compliant with this Act.CommentsClose CommentsPermalink

SEC. 6. ENFORCEMENT.

(a) Unfair and Deceptive Act or Practice- Any violation of section 4 or 5 shall be treated as a violation of a rule under section 18 of the Federal Trade Commission Act regarding unfair or deceptive acts or practices.CommentsClose CommentsPermalink





(b) Enforcement by the Federal Trade 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 provisions of the Federal Trade Commission Act were incorporated into and made a part of this Act.CommentsClose CommentsPermalink





(c) Enforcement by States-CommentsClose CommentsPermalink





(1) CIVIL ACTION- In any case in which the attorney general of a State, or an agency of a State responsible for consumer protection, has reason to believe that an interest of the residents of that State has been or is adversely affected by any person who violates section 4 or 5 of this Act, the attorney general or the State agency, as parens patriae, may bring a civil action on behalf of the residents of the State in a district court of the United States of appropriate jurisdiction--CommentsClose CommentsPermalink





(A) to enjoin further violation of section 4 or 5 by the defendant; orCommentsClose CommentsPermalink





(B) to obtain damages on behalf of residents of the State, in an amount equal to the greater of--CommentsClose CommentsPermalink





(i) the actual monetary loss suffered by such residents; orCommentsClose CommentsPermalink





(ii) the amount determined under paragraph (2).CommentsClose CommentsPermalink





(2) STATUTORY DAMAGES-CommentsClose CommentsPermalink





(A) IN GENERAL- For purposes of paragraph (1)(B)(ii), the amount determined under this paragraph is the amount calculated by multiplying the number of violations by up to $100, with each ticket subject to an unlawful prohibition or restriction, or sold or offered to be sold in violation of section 5, counted as a separate violation.CommentsClose CommentsPermalink





(B) LIMITATION- For any violation of section 4 or 5 with respect to any one event, the amount determined under subparagraph (A) may not exceed $1,000,000.CommentsClose CommentsPermalink





(3) ATTORNEY FEES- In the case of any successful action under paragraph (1), the court, in its discretion, may award the costs of the action and reasonable attorney fees to the State.CommentsClose CommentsPermalink





(4) RIGHTS OF FEDERAL REGULATORS- The State shall serve prior written notice of any action under paragraph (1) upon the Federal Trade Commission and provide the Commission with a copy of its complaint, except in any case in which such prior notice is not feasible, in which case the State shall serve such notice immediately upon instituting such action. The Federal Trade Commission shall have the right--CommentsClose CommentsPermalink





(A) to intervene in the action;CommentsClose CommentsPermalink





(B) upon so intervening, to be heard on all matters arising therein;CommentsClose CommentsPermalink





(C) to remove the action to the appropriate United States district court; andCommentsClose CommentsPermalink





(D) to file petitions for appeal.CommentsClose CommentsPermalink





(5) CONSTRUCTION- For purposes of bringing any civil action under paragraph (1), nothing in this Act shall be construed to prevent an attorney general of a State from exercising the powers conferred on the attorney general by the laws of that State to--CommentsClose CommentsPermalink





(A) conduct investigations;CommentsClose CommentsPermalink





(B) administer oaths or affirmations; orCommentsClose CommentsPermalink





(C) compel the attendance of witnesses or the production of documentary and other evidence.CommentsClose CommentsPermalink





(6) VENUE; SERVICE OF PROCESS-CommentsClose CommentsPermalink





(A) VENUE- Any action brought under paragraph (1) may be brought in the district court of the United States that meets applicable requirements relating to venue under section 1391 of title 28, United States Code.CommentsClose CommentsPermalink





(B) SERVICE OF PROCESS- In an action brought under paragraph (1), process may be served in any district in which the defendant--CommentsClose CommentsPermalink





(i) is an inhabitant; orCommentsClose CommentsPermalink





(ii) maintains a physical place of business.CommentsClose CommentsPermalink





(7) LIMITATION ON STATE ACTION WHILE FEDERAL ACTION IS PENDING- If the Commission has instituted a civil action or an administrative action for violation of this Act, no State attorney general, or official or agency of a State, may bring an action under this subsection during the pendency of that action against any defendant named in the complaint of the Commission for any violation of this Act alleged in the complaint.CommentsClose CommentsPermalink

SEC. 7. EFFECT ON STATE LAW.

(a) Preemption in General- Except as otherwise provided in this section, this Act preempts and supersedes any inconsistent statute, regulation, or rule of a State or political subdivision of a State that purports to permit any action prohibited by this Act, but only to the extent of such inconsistency.CommentsClose CommentsPermalink





(b) Preemption of Antiscalping Laws- This Act preempts and supersedes any statute, regulation, or rule of a State or political subdivision of a State that limits the price at which an event ticket may be resold.CommentsClose CommentsPermalink





(c) Savings- Nothing in this Act shall be construed to preempt the applicability of the law of a State or political subdivision of a State that--CommentsClose CommentsPermalink





(1) regulates or prohibits the sale or resale of event tickets--CommentsClose CommentsPermalink





(A) based on proximity of the location of sale to the location of a venue; orCommentsClose CommentsPermalink





(B) in a manner that constitutes disorderly conduct or breach of the peace;CommentsClose CommentsPermalink





(2) empowers the operator of a venue or its agent to deny admission to any person, or to eject any person from an event, in order to preserve public safety or order, or to prevent or restrict the admission of minors;CommentsClose CommentsPermalink





(3) prohibits fraud, deception, or similar practices in connection with the sale or resale of tickets, or prohibits the sale or resale of counterfeit tickets;CommentsClose CommentsPermalink





(4) treats a ticket as a license for any purpose other than the prohibition or restriction of resale;CommentsClose CommentsPermalink





(5) regulates the initial sale of event tickets by limiting the number of tickets that may be purchased from a ticket issuer by a single person; orCommentsClose CommentsPermalink





(6) prohibits the intentional circumvention of technological means employed by ticket issuers to enforce limitations on the number of tickets that may be purchased by a single person, or the sale or distribution of devices, computer programs, or other tools for the purpose of such circumvention.CommentsClose CommentsPermalink

SEC. 8. EXCEPTIONS.

Nothing in this Act shall be interpreted to invalidate restrictions on the resale of tickets imposed by--CommentsClose CommentsPermalink





(1) sponsors or promoters of events intended solely to benefit charitable endeavors, for which all tickets are distributed free of charge;CommentsClose CommentsPermalink





(2) not-for-profit educational institutions, with respect to athletic events involving athletes or teams of such institutions, to the extent that such restrictions apply to tickets initially distributed by the institution to--CommentsClose CommentsPermalink





(A) students, faculty, staff members, or alumni without charge; orCommentsClose CommentsPermalink





(B) members of bona fide booster organizations consisting of those making substantial financial contributions to the institution.CommentsClose CommentsPermalink

SEC. 9. EFFECTIVE DATE.

This Act shall take effect 1 year after the date of enactment, and shall apply to tickets for all events which occur on or after the effective date.CommentsClose CommentsPermalink