S. 281 — TICKET Act

This section makes it unlawful, beginning 180 days after enactment, for a ticket issuer, secondary market ticket issuer, or secondary market ticket exchange to offer an event ticket for sale unless it (1) clearly and conspicuously displays the total event ticket price in any advertisement, marketing, or price list; (2) clearly and conspicuously discloses the total price when the ticket is first displayed to a potential purchaser and throughout the purchasing process; and (3) provides an itemized list of the base price and each fee prior to completing the purchase.

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 that it does not have actual or constructive possession of. Notwithstanding this prohibition, such an entity may sell, offer for sale, or advertise for sale a service to obtain an event ticket on an individual's behalf if it (1) does not market or list the service as an event ticket, (2) maintains a clear, distinct, and easily discernible separation between the service and event tickets throughout the entire service selection and purchasing process, and (3) clearly and conspicuously discloses before selection of the service that the service is not an event ticket and that its purchase does not guarantee an event ticket.

This section requires a ticket issuer, secondary market ticket issuer, or secondary market ticket exchange offering an event ticket for resale to provide a clear and conspicuous statement, before purchase, disclosing that it is engaged in the secondary sale of event tickets. The section further (1) prohibits such entities from stating or implying affiliation with or endorsement by a venue, team, or artist—including by using words like “official” in promotional materials, social media, or paid advertising—unless authorized by a partnership agreement or express written consent; and (2) prohibits including the name of the venue (or misspellings thereof) in a domain name or subdomain of its 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 specified refunds or replacement tickets for canceled or postponed events (except those due to causes beyond the issuer's reasonable control, such as natural disasters or civil disturbances). Specifically, it mandates (1) a full refund of the total ticket price for canceled events; (2) subject to availability, a replacement ticket in the same or comparable location for events postponed up to 6 months if the original ticket is invalid; and (3) for events postponed more than 6 months, the purchaser's choice of a full refund or such a replacement ticket if the original is invalid. The section further requires clear and conspicuous pre-sale disclosure of the issuer's or exchange's guarantee and refund policy, including circumstances for refunding ticket fees, and an explanation of how to obtain a refund of the total ticket price.

This section directs the Federal Trade Commission (FTC) to submit to Congress, not later than six months after enactment, a report on enforcement of the Better Online Ticket Sales Act of 2016 (BOTS Act; 15 U.S.C. 45c). (As background, the BOTS Act prohibits persons from using bots or other software to circumvent ticket issuers' technological measures enforcing purchase limits and from selling tickets obtained in violation of those limits.) The report must describe enforcement actions taken, challenges with enforcement and coordination with state attorneys general, and recommendations to improve enforcement and industry compliance.

This section provides that a violation of the 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)) (i.e., FTC rulemaking authority to specify such acts). It further directs the Federal Trade Commission (FTC) to enforce the Act using the same manner, means, jurisdiction, powers, and duties as under the Federal Trade Commission Act (15 U.S.C. 41 et seq.); subjects violators to the Act's penalties and entitles them to its privileges and immunities; and preserves the FTC's authority under other laws.

This section provides definitions for terms used in the Act, including (1) "artist" (i.e., performer, musician, comedian, producer, ensemble, production entity of a theatrical production, or sports team owner); (2) "base event ticket price" (i.e., ticket price excluding event ticket fees); (3) "event" (i.e., live concert, theatrical performance, sporting event, or similar activity in a venue with seating or attendance capacity exceeding 200 persons that is open to the general public and promoted or sold in interstate commerce); (4) "event ticket fee" (i.e., mandatory charges beyond the base price, such as service, processing, delivery, or facility fees, excluding optional products or services); and (5) terms related to ticket resales and secondary markets (i.e., "resale," "secondary sale," "secondary market ticket exchange," and "secondary market ticket issuer"). It also defines "total event ticket price" (i.e., base price plus fees), "venue," "URL," and cross-references definitions of "event ticket" and "ticket issuer" from the Better Online Ticket Sales Act of 2016.