HF 1989

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 03/02/2023 04:17pm

A bill for an act
relating to consumer protection; regulating ticket sales to places of entertainment;
providing for civil penalties; proposing coding for new law in Minnesota Statutes,
chapter 325F.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [325F.676] TICKET SALES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Entertainment" means all forms of entertainment, including but not limited to
theatrical or operatic performances, concerts, motion pictures, entertainment at fairgrounds,
amusement parks, athletic competitions and other sports, and all other forms of diversion,
recreation, or show.
new text end

new text begin (c) "Online ticket marketplace" means the administrator of a website or other electronic
service that sells or resells tickets or serves as a platform to facilitate the sale or resale of
tickets.
new text end

new text begin (d) "Operator" means a person, including an agent or assignee, who owns, operates, or
controls a place of entertainment or who promotes or produces entertainment. Operator
does not include a nonprofit corporation organized under the laws of this or another state,
a charitable trust, and any other entity that qualifies as tax exempt under section 501(c)(3)
of the Internal Revenue Code, as amended.
new text end

new text begin (e) "Place of entertainment" means a privately or publicly owned and operated
entertainment facility, including but not limited to an amphitheater, theater, stadium, arena,
racetrack, museum, amusement park, or other place where performances, concerts, exhibits,
athletic games, or contests, are held for which an entry fee is charged.
new text end

new text begin (f) "Ticket reseller" means a person who sells tickets for entrance to a place of
entertainment located in this state. Sales by a ticket reseller includes sales by any means,
including but not limited to in person or by telephone, mail, delivery service, facsimile,
Internet, email, or other electronic means. A ticket reseller does not include a person who
purchases a ticket solely for their own use or the use of their invitees, employees, or agents,
or who purchases a ticket on behalf of others and resells the ticket to invitees, employees,
agents, or others at or less than the face value.
new text end

new text begin Subd. 2. new text end

new text begin Disclosures. new text end

new text begin (a) An operator, ticket reseller, or online ticket marketplace shall
disclose in an easily readable and conspicuous manner the total cost of the ticket, inclusive
of all ancillary fees that must be paid in order to purchase the ticket, and the portion of the
ticket price stated in dollars that represents a service charge, and any other fee or surcharge
to the purchaser. Disclosure of the total cost and fees must be displayed in the ticket listing
prior to the ticket being selected for purchase. Disclosure of subtotals, fees, charges, and
all other components of the total price shall not be false or misleading, and shall not be
presented more prominently or in the same or larger size than the total price. The price of
a ticket must not increase after the ticket is selected for purchase, excluding reasonable fees
for the delivery of nonelectronic tickets based on the delivery method selected by the user,
which must be disclosed prior to accepting payment.
new text end

new text begin (b) An online ticket marketplace shall disclose in an easily readable and conspicuous
manner on its website:
new text end

new text begin (1) that the website is for the secondary sale of a ticket and that the price of the ticket
offered for sale may exceed its face value; and
new text end

new text begin (2) the refund policy of the marketplace in connection with the cancellation or
postponement of an event.
new text end

new text begin An online ticket marketplace must require that a user confirm having read the disclosures
required by this paragraph before completing a transaction.
new text end

new text begin (c) An online ticket marketplace must disclose in an easily readable and conspicuous
manner the face value of a ticket prior to the user completing a transaction.
new text end

new text begin (d) An online ticket marketplace must disclose in an easily readable and conspicuous
manner that the website belongs to a ticket reseller.
new text end

new text begin (e) An online ticket marketplace must not use any combination of text, images, web
designs, or Internet addresses that is substantially similar to the Internet website of an
operator or a place of entertainment without the written permission of the operator.
new text end

new text begin Subd. 3. new text end

new text begin Fees. new text end

new text begin A ticket reseller and online ticket marketplace must calculate fees and
charges for a ticket based on the percentage of the lesser of: (1) the face value of the ticket;
or (2) the cost of the ticket without fees and charges when sold by a ticket reseller or online
ticket marketplace.
new text end

new text begin Subd. 4. new text end

new text begin Prohibitions. new text end

new text begin (a) A ticket reseller shall not:
new text end

new text begin (1) resell more than one copy of the same ticket to a place of entertainment;
new text end

new text begin (2) employ another person directly or indirectly to wait in line to purchase tickets for
the purpose of reselling the tickets if the practice is prohibited by an operator or if the place
of entertainment has posted a policy prohibiting the practice; or
new text end

new text begin (3) resell a ticket without first informing the purchaser of the location of the place of
entertainment or, if there is no assigned seat, the general admission area to which the ticket
corresponds, including but not limited to the row and section number of the ticket.
new text end

new text begin (b) A ticket reseller shall not resell a ticket before the ticket has been made available to
the public, including via presale, without first obtaining permission from the operator.
new text end

new text begin (c) A person shall not:
new text end

new text begin (1) circumvent any portion of the process for purchasing a ticket on the Internet, including
but not limited to security or identity validation measures or an access control system; or
new text end

new text begin (2) disguise the identity of a purchaser for the purpose of purchasing a number of tickets
for admission to a place of entertainment that exceeds the maximum number of tickets
allowed for purchase by a person.
new text end

new text begin (d) A person shall not resell a ticket obtained in violation of paragraph (c) if the person:
new text end

new text begin (1) participated in or had the ability to control the conduct committed in violation of
paragraph (c); or
new text end

new text begin (2) knew that the ticket was acquired in violation of paragraph (c).
new text end

new text begin (e) An operator or ticket reseller shall not resell a ticket unless:
new text end

new text begin (1) the ticket is in the possession or constructive possession of the operator or ticket
reseller; or
new text end

new text begin (2) the ticket reseller has a written contract with the operator to obtain the ticket.
new text end

new text begin Subd. 5. new text end

new text begin Private right of action. new text end

new text begin A purchaser injured by a violation of this section shall
have a private right of action and the court shall award:
new text end

new text begin (1) actual, incidental, and consequential damages;
new text end

new text begin (2) statutory damages equal to the amount paid for the ticket; and
new text end

new text begin (3) court costs and reasonable attorney fees.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023, and applies to tickets sold
on or after that date.
new text end