H.R. 1402 — Transparency In Charges for Key Events Ticketing Act

This section establishes the short title of the Act as the “Transparency In Charges for Key Events Ticketing Act” or the “TICKET Act.”

This section establishes all-inclusive ticket price disclosure requirements beginning 180 days after enactment. It prohibits a ticket issuer, secondary market ticket issuer, or secondary market ticket exchange from offering an event ticket for sale unless the seller (1) clearly and conspicuously displays the total event ticket price in any advertisement, marketing, or price list where the ticket is offered for sale, (2) clearly and conspicuously discloses the total event ticket price to a prospective purchaser when the ticket is first displayed and throughout the purchasing process, and (3) provides an itemized list of the base event ticket price and each event ticket fee before the purchase is completed. (Thus, consumers would see the full price earlier in the shopping process and receive a breakdown of fees before checkout.)

This section prohibits, beginning 180 days after enactment, a ticket issuer, secondary market ticket issuer, or secondary market ticket exchange from selling, offering for sale, or advertising for sale an event ticket unless it has actual or constructive possession of the ticket. It also permits a secondary market ticket issuer or secondary market ticket exchange to sell a service to obtain an event ticket on behalf of an individual, provided that the service is not marketed or listed as an event ticket, is kept clearly and distinctly separate from event tickets throughout the selection and purchasing process, and is clearly disclosed before selection as not being an event ticket and as not guaranteeing a ticket.

This section requires a ticket issuer, secondary market ticket issuer, or secondary market ticket exchange to make three disclosures and restrictions when reselling event tickets: (1) before a consumer purchases a resale ticket, the seller must provide a clear and conspicuous statement that it is engaged in the secondary sale of event tickets; (2) the seller may not state or imply that it is affiliated with or endorsed by a venue, team, or artist, including by using terms such as “official” in promotional materials, social media promotions, or paid advertising, unless a partnership agreement has been executed or the seller has the express written consent of the venue, team, or artist; and (3) the seller may not include the name of a venue, including any misspelling of that name, in a domain name, subdomain, or URL unless authorized by the venue owner.

This section requires ticket issuers, secondary market ticket issuers, and secondary market ticket exchanges, beginning 180 days after enactment, to provide refunds or replacement tickets for canceled or postponed events and to disclose refund policies and procedures before sale. It requires a full refund of the total event ticket price if an event is canceled; if an event is postponed for not more than 6 months and the original ticket is no longer valid, it requires a replacement ticket for the rescheduled event in the same or a comparable location, subject to availability; and if an event is postponed for more than 6 months, it gives the purchaser the option of a full refund or, if the original ticket is no longer valid, a replacement ticket for the rescheduled event in the same or a comparable location. It exempts cancellations or postponements caused by circumstances beyond the issuer’s reasonable control, including natural disasters, civil disturbances, or other unforeseeable impediments. It also requires a clear and conspicuous disclosure, before completion of sale, of the issuer’s guarantee or refund policy, including whether any refund includes event ticket fees, and a clear and conspicuous explanation of how to obtain a refund of the total event ticket price.

This section directs the Federal Trade Commission to submit to Congress, not later than 6 months after enactment, a report on enforcement of the Better Online Ticket Sales Act of 2016 (BOTS Act; 15 U.S.C. 45c), including any enforcement actions taken, challenges in enforcement and coordination with state attorneys general, and recommendations to improve enforcement and industry compliance.

This section provides that a violation of this Act is treated as a violation of a rule defining an unfair or deceptive act or practice under section 18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)). It directs the Federal Trade Commission (FTC) to enforce the Act in the same manner, by the same means, and with the same jurisdiction, powers, and duties as if the applicable provisions of the FTC Act (15 U.S.C. 41 et seq.) were incorporated into the Act. It also subjects violators to the penalties, privileges, and immunities available under the FTC Act and preserves the FTC’s authority under any other provision of law.

This section establishes definitions for key terms used in the Act governing event ticket sales, including “artist,” “event,” “event ticket fee,” “optional product or service,” “resale” or “secondary sale,” “secondary market ticket exchange,” “secondary market ticket issuer,” “total event ticket price,” “URL,” and “venue.” It defines an “event” as a live concert, theatrical performance, sporting event, show, or similarly scheduled live activity taking place in a venue with a seating or attendance capacity exceeding 200 persons, open to the general public, and promoted or sold in interstate commerce. It defines “event ticket fee” as any charge paid in addition to the base event ticket price to obtain a ticket, including service, processing, delivery, facility, and tax charges, but excluding charges for optional products or services. It defines “resale” or “secondary sale” as any sale after the initial sale by a ticket issuer, and it defines “total event ticket price” as the base event ticket price plus any event ticket fee.