SF 4148

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/23/2024 10:09am

A bill for an act
relating to consumer protection; requiring disclosures relating to ticket sales;
prohibiting certain ticket resales and fees; 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.677] 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. Entertainment does not include forms of entertainment operated or
produced by a nonprofit corporation organized under the laws of Minnesota 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, other than professional sporting leagues.
new text end

new text begin (c) "Entertainment venue" means a privately or publicly owned and operated
entertainment facility, including but not limited to a 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 (d) "Established price" means the price fixed at the time of sale by the operator of any
entertainment venue for admission to the entertainment venue.
new text end

new text begin (e) "Online resale marketplace" means the administrator of a website or other electronic
service that resells tickets or maintains a platform that facilitates the resale of tickets.
new text end

new text begin (f) "Operator" means a person, including an agent or assignee, who owns, operates, or
controls an entertainment venue or who produces entertainment.
new text end

new text begin (g) "Retail ticket purchasing platform" means a retail ticket purchasing website,
application, telephone system, or other technology platform used to sell tickets.
new text end

new text begin (h) "Ticket" means any evidence of the right to enter any entertainment venue.
new text end

new text begin (i) "Ticket purchasing software" means any machine, device, computer program, or
computer software that, automatically or with human assistance, bypasses security measures
or access control systems on a retail ticket purchasing platform, or bypasses other controls
or measures on a retail ticket purchasing platform that assist in implementing a limit on the
number of tickets that can be purchased, in order to purchase tickets.
new text end

new text begin (j) "Ticket reseller" means a person, other than an operator, who sells tickets for entrance
to an entertainment venue located in Minnesota. 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 (1) solely for the person's own use or the use of the person's
invitees, employees, or agents, or (2) on behalf of others and resells the ticket to invitees,
employees, agents, or others at or for less than the established price.
new text end

new text begin Subd. 2. new text end

new text begin Disclosure; notice. new text end

new text begin (a) Every entertainment venue operator must, if a price is
charged for admission to the entertainment venue, print or endorse on the face of each ticket:
(1) the established price; or (2) the final auction price, if the ticket was sold or resold by
auction through the operator.
new text end

new text begin (b) An operator, ticket reseller, or online resale marketplace must disclose to the purchaser
in a clear and conspicuous manner: (1) the total cost of the ticket, inclusive of all ancillary
fees that must be paid in order to purchase the ticket; (2) the portion of the ticket price,
stated in dollars, that represents a service charge; and (3) any other fee or surcharge. The
disclosure of the total cost and fees must be displayed in the ticket listing before the ticket
is selected for purchase. Disclosures of subtotals, fees, charges, and all other components
of the total price must not be false or misleading, and must not be presented more prominently
or in the same or larger size than the total price.
new text end

new text begin (c) The price of a ticket must not increase during the purchase process, excluding fees
charged to deliver nonelectronic tickets based on the delivery method selected by the
purchaser. Any fees charged to deliver nonelectronic tickets must be disclosed before
accepting payment.
new text end

new text begin (d) An online resale marketplace must post clearly and conspicuously on the online
resale marketplace's 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 the established price; and
new text end

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

new text begin (e) An online resale marketplace must require that the user confirm having read the
notices required under paragraph (d) before completing any transaction.
new text end

new text begin (f) A ticket reseller or an online resale marketplace must clearly and conspicuously
disclose the established price before the purchaser completes a transaction.
new text end

new text begin Subd. 3. new text end

new text begin Delivery fees. new text end

new text begin (a) An operator, ticket reseller, or online resale marketplace may
charge a fee to physically deliver a ticket, based on the method of delivery selected by the
purchaser.
new text end

new text begin (b) An operator, ticket reseller, or online resale marketplace must not charge a delivery
fee for tickets delivered electronically or tickets that may be printed independently by the
purchaser.
new text end

new text begin (c) A fee charged under this subdivision must reasonably represent the actual cost incurred
by the operator, ticket seller, or online resale marketplace to physically deliver a ticket.
new text end

new text begin Subd. 4. new text end

new text begin Resale of tickets issued at no charge. new text end

new text begin It is unlawful to resell or offer to resell
any ticket or other evidence of right of entry to an entertainment venue if: (1) the ticket was
initially offered to the public at no charge; and (2) access to the ticket is not contingent upon
a purchaser providing any form of monetary consideration.
new text end

new text begin Subd. 5. new text end

new text begin Tickets withheld from sale to general public. new text end

new text begin (a) Not less than seven days
before the date on which tickets are available for primary sale, an operator must disclose
and display on the operator's website, at the box office, and on any other method of ticket
distribution the operator uses the total number of tickets offered for sale to the general
public. The total number of tickets offered must be periodically updated by the operator if
and when additional tickets are subsequently released for sale to the general public.
new text end

new text begin (b) It is unlawful for an operator or any person who has access to tickets to an event
prior to the tickets' release for sale to the general public to withhold from sale to the general
public an amount of tickets exceeding ten percent of all available seating for the event.
Tickets distributed to bona fide charitable groups or initially reserved due to event production
holds, including but not limited to pending seating, lighting, or stage configurations, that
are subsequently released to the general public are not included for the purposes of calculating
the amount withheld under this paragraph.
new text end

new text begin (c) This subdivision shall not apply to venues with a seating capacity of less than 6,500
guests.
new text end

new text begin Subd. 6. new text end

new text begin Ticket refunds. new text end

new text begin (a) Notwithstanding any other provision of law, an operator,
ticket reseller, online resale marketplace, or any other person that resells tickets or facilitates
the resale or resale auction of tickets between independent parties by any means must provide
a full refund of the amount paid by the purchaser, including but not limited to all fees,
regardless of how characterized, if any of the following occurs:
new text end

new text begin (1) the event for which the ticket has been resold is canceled, except that if the event is
canceled then actual handling and delivery fees need not be refunded, provided that the
previously disclosed guarantee specifies that handling and delivery fees are not refunded;
new text end

new text begin (2) the ticket received by the purchaser does not grant the purchaser admission to the
event described on the ticket for reasons outside the purchaser's control that may include,
without limitation: (i) the ticket is counterfeit or the ticket has been canceled by the issuer
due to nonpayment; or (ii) the event described on the ticket was canceled for any reason
prior to purchase of the resold ticket, unless the ticket is canceled due to an act or omission
by the purchaser; or
new text end

new text begin (3) the ticket fails to conform to the ticket's description as advertised, unless the purchaser
has preapproved a substitution of tickets.
new text end

new text begin (b) If the event for which the ticket has been resold is postponed more than once in a
calendar year, is rescheduled to a subsequent date more than one year from the initial event
date, or has been postponed and has not been rescheduled within three months after the
initial event date, the seller or facilitator of the sale, as applicable, must notify the purchaser
of the tickets and provide a 30-day window during which the purchaser may elect to (1)
retain the tickets, (2) receive a credit equal to or in excess of the full amount paid by the
purchaser, or (3) receive a full refund. If at the end of the 30-day window the purchaser of
the tickets has not chosen one of the options under clauses (1) to (3), within 30 additional
days the seller or facilitator must provide the purchaser a full refund of the amount paid by
the purchaser, including but not limited to all fees, regardless of how the fees are
characterized.
new text end

new text begin (c) Before a refund payment is made, the seller or facilitator of the sale, as applicable,
and purchaser must first make a good faith effort to remedy any disputes where the seller
or facilitator of the sale, as applicable, and purchaser have agreed to established terms for
the disposition of disputes as a condition of facilitating the transaction.
new text end

new text begin Subd. 7. new text end

new text begin Prohibition on ticket purchasing software. new text end

new text begin (a) It is unlawful for any person
to knowingly utilize ticket purchasing software to purchase tickets.
new text end

new text begin (b) Any person who knowingly utilizes ticket purchasing software in order to purchase
tickets is subject to a civil penalty in an amount of no less than $1,000 and no more than
$2,500 for each violation, and must forfeit all profits made from the sale of any unlawfully
obtained tickets.
new text end

new text begin (c) It is unlawful for any person to knowingly resell or offer to resell a ticket that the
person knows was obtained using ticket purchasing software.
new text end

new text begin (d) Any person who knowingly resells or offers to resell a ticket that the person knows
was obtained using ticket purchasing software is subject to a civil penalty in an amount of
no less than $1,000 and no more than $2,500 for each violation, and must forfeit all profits
made from the sale of any unlawfully obtained ticket.
new text end

new text begin (e) Any person who knowingly maintains any interest in or maintains any control of the
operation of ticket purchasing software to purchase tickets is subject to a civil penalty in
an amount of no less than $1,000 and no more than $2,500 for each violation, and must
forfeit all profits made from the sale of any unlawfully obtained tickets.
new text end

new text begin (f) Any person who is subject to a civil penalty under this section and has been assessed
a penalty under this section in the previous three years is guilty of a violation and may be
fined no less than $2,000 and no more than $10,000 for each violation, and must forfeit all
profits from the sale of unlawfully obtained tickets. In addition, a person convicted of a
violation under this section may be required to forfeit any and all equipment used to
unlawfully purchase tickets.
new text end

new text begin Subd. 8. new text end

new text begin Rights of action. new text end

new text begin (a) The attorney general has jurisdiction to enforce the
provisions of this section in accordance with the powers granted under section 8.31.
new text end

new text begin (b) In addition to the power given to the attorney general to enforce the provisions of
this section, any aggrieved party that has been injured by wrongful conduct prescribed by
this section may bring an action to recover all actual damages suffered as a result of any
wrongful conduct. The court may award damages up to three times the amount of actual
damages. The court may enjoin the respondent from any and all activity prohibited under
this section. The court may also award reasonable attorney fees and costs.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024, and applies to tickets sold
on or after that date.
new text end