Consumer protection: ticket sellers., the official text

An act to amend Section 22502.3 of, to add Sections 22502.6 and 22505.6 to, to repeal Section 22503.5 of, and to repeal and add Sections 22502.1, 22503, 22505.5, and 22505.5 of, the Business and Professions Code, relating to business.

LEGISLATIVE COUNSEL'S DIGEST

Existing law provides comprehensive regulation of ticket sellers, defined as a person who, for compensation, commission, or otherwise, sells admission tickets to a sporting, musical, theater, or any other entertainment event. In this regard, existing law, among other things, prohibits specified ticket selling practices and imposes certain recordkeeping and disclosure requirements. If an event is canceled, existing law requires that the ticket price be fully refunded to the consumer whether by an original seller, event presenter, ticket reseller, or ticket resale marketplace, as specified. If an event is postponed, rescheduled, or replaced with another event at the same date and time, existing law requires the ticket seller to fully refund the purchaser upon request, as provided. Existing law makes a violation of those provisions a misdemeanor, and imposes civil penalties for certain violations.
Existing unfair competition laws make various unfair competition practices unlawful, including any unlawful, unfair, or fraudulent business act or practice and unfair, deceptive, untrue, or misleading advertising. Existing law makes it unlawful for any person doing business in California and advertising to consumers in California to make any false or misleading advertising claim. Existing law makes a person who violates specified false advertising provisions liable for a civil penalty, as specified, and provides that a person who violates those false advertising provisions is guilty of a misdemeanor.
This bill would generally revise and recast the provisions regulating the sale of event tickets to impose similar requirements, as applicable, to original sellers, event presenters, ticket resellers, and ticket resale marketplaces, as defined.
This bill would prohibit a ticket seller from engaging in a speculative ticket sale, as defined. The bill would require that a ticket resale marketplace implement reasonable measures designed to prevent speculative ticket sales on its platform. The bill would make an original seller, ticket reseller, or ticket retail marketplace that violates particular law and fails to supply a ticket, as specified, civilly liable to the ticket purchaser for 2 times the contracted price of the ticket, in addition to any sum expended by the purchaser in nonrefundable expenses for attending or attempting to attend the event, and other fees and costs.
This bill would make certain acts unlawful, including purchasing tickets in excess of posted limits for an online event ticket sale and circumventing or evading a ticket distribution control, as specified. The bill would also prohibit a person from using an internet website or address that is substantially similar to the internet website of an event presenter, venue operator, rights holder, original seller, or an authorized agent with intent to confuse or deceive consumers, as specified. The bill would make a violation of these provisions false or misleading advertising. By expanding the scope of a crime, this bill would impose a state-mandated local program.
By expanding the scope of certain requirements related to selling those tickets, the violation of which is a crime, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.

The people of the State of California do enact as follows:

SECTION 1.
Section 22502.1 of the Business and Professions Code is repealed.

SEC. 2.
Section 22502.1 is added to the Business and Professions Code, to read:
22502.1.
(a) For purposes of this section, “speculative ticket sale” means the advertisement, listing, marketing, offer for sale, contract for sale, acceptance of payment for, or sale of a ticket by a person other than a ticket resale marketplace who, at the time of the advertisement, listing, marketing, offer for sale, contract for sale, acceptance of payment for, or sale, does not have either of the following:
(1) Actual or constructive possession of the ticket. Constructive possession means that the person has fully paid for the ticket, holds a legally enforceable right to receive delivery of the ticket, and has received confirmation of purchase or assignment from the original ticket seller, event presenter, or venue operator.
(2) Authorization from the event presenter or venue operator to sell the ticket.
(b) A ticket resale marketplace shall not knowingly or recklessly process payment, collect a fee, advertise, list, market, offer for sale, contract for sale, accept payment for, or facilitate the completion of a speculative ticket sale, and it shall implement reasonable measures designed to prevent speculative ticket sales on its platform.
(c) A ticket seller shall not engage in a speculative ticket sale.
(d) A ticket seller shall not advertise, list, market, offer for sale, contract for sale, accept payment for, or sell a ticket before the ticket has been made available for sale by the event presenter, venue operator, rights holder, or original seller, unless expressly authorized by the event presenter, venue operator, rights holder, or original seller unless the ticket seller has constructive possession of the ticket as defined in paragraph (1) of subdivision (a).

SEC. 3.
Section 22502.3 of the Business and Professions Code is amended to read:
22502.3.
In addition to other remedies, a ticket seller, original seller, ticket reseller, or ticket retail marketplace that violates Section 22502.1 or 22502.2 and fails to supply a ticket at or below a contracted price or within a contracted price range shall be civilly liable to the ticket purchaser for two times the contracted price of the ticket, in addition to any sum expended by the purchaser in nonrefundable expenses for attending or attempting to attend the event in good faith reliance on seat or space availability, and reasonable attorney’s fees and court costs.

SEC. 4.
Section 22503 of the Business and Professions Code is repealed.

SEC. 5.
Section 22503 is added to the Business and Professions Code, to read:
22503.
For purposes of this chapter, the following terms have the following meanings:
(a) “Consumer” means a natural person who purchases a ticket with the reasonable expectation of attending an event.
(b) “Event presenter” means the person or organization responsible for a sporting, musical, theater, or other entertainment event for which tickets are sold, including a rights holder or their authorized agent.
(c) “Onsale” means the official date and time when tickets for an event become available to the general public.
(d) “Original seller” means a person who, for compensation, commission, or otherwise, advertises, lists, markets for sale, or sells an admission ticket to a sporting, musical, theater, or other entertainment event for original sale as instructed by an event presenter or venue operator.
(e) “Rights holder” means an artist, performing arts organization, theater company, dance company, professional athletic team, professional athletic league, author, lecturer, or other person that is a primary performer, participant, speaker, or presenter at an event for which tickets are sold.
(f) “Ticket resale marketplace” means an entity that, for compensation, commission, or otherwise, operates a website or other online application that advertises, lists, markets for sale, processes payments for, or facilitates the resale of admission tickets for, a sporting, musical, theater, or other entertainment event between third parties, and includes an original seller to the extent that the original seller operates a website or other online application that advertises, lists, markets for sale, processes payments for, or facilitates resale or original sale of tickets that were not offered to the general public during the public onsale.
(g) “Ticket reseller” means a person or entity, other than a consumer or season ticket holder, who, for compensation, commission, or otherwise, advertises, lists, markets for sale, offers for sale, facilitates the sale of, or sells admission tickets to, a sporting, musical, theater, or other entertainment event on the secondary market.
(h) “Ticket seller” means a person who, for compensation, commission, or otherwise, advertises, lists, markets for sale, offers for sale, facilitates the sale of, or sells an admission ticket to, a sporting, musical, theater, or other entertainment event.
(i) “Venue operator” means a person who owns, operates, manages, or controls a venue at which a sporting, musical, theater, or other entertainment event is presented.
(j) “Season ticket holder” means a person who purchases a package of tickets for multiple events from an original seller, event presenter, rights holder, or venue operator pursuant to a season ticket membership, subscription, premium seat license, or similar ticketing program.

SEC. 6.
Section 22503.5 of the Business and Professions Code is repealed.

SEC. 7.
Section 22505.5 of the Business and Professions Code is repealed.

SEC. 8.
Section 22505.5 is added to the Business and Professions Code, to read:
22505.5.
Notwithstanding Section 22503.4, 22504, or 22511, it shall be unlawful for a person to knowingly use, cause to be used, provide, sell, offer for sale, market, or facilitate software or services to do, or otherwise engage in, any of the following:
(a) Purchase tickets in excess of posted limits for an online event ticket sale.
(b) Circumvent or evade an electronic queue, waiting period, presale restriction or presale code, ticket purchasing limit, account limitation, or other ticket distribution control established and disclosed by the event presenter, venue operator, rights holder, or ticket seller.
(c) Circumvent or disable a security measure, access control system, or other control or measure used to facilitate authorized ticket sales or authorized entry into an event.
(d) Utilize multiple Internet Protocol addresses, multiple purchaser accounts, multiple email addresses, or other technological means to purchase tickets in excess of posted ticket limits or otherwise evade ticket purchasing restrictions established pursuant to subdivision (b).
(e) Use software, services, automated means, or other technological methods to automate, coordinate, facilitate, or otherwise enable conduct prohibited by this section.

SEC. 9.
Section 22505.6 is added to the Business and Professions Code, to read:
22505.6.
(a) It shall be unlawful for a person, ticket seller, original seller, ticket reseller, ticket resale marketplace, or other person acting in connection with the sale or resale of tickets to advertise, market, or offer tickets for sale in a manner that is likely to mislead a reasonable consumer regarding the source, sponsorship, authorization, availability, price, or nature of the ticket being offered.
(b) A person shall not use an internet website, internet address, domain name, trade name, trademark, service mark, logo, design, text, image, or other identifying characteristic, or any combination thereof, that is substantially similar to, or likely to be confused with, that of an event presenter, venue operator, rights holder, original seller, or authorized agent, if displayed with an intent to confuse or deceive consumers or where such display is likely to confuse or deceive a reasonable consumer regarding the source, sponsorship, authorization, or affiliation of the website or advertisement.
(c) A person shall not represent or imply that:
(1) A ticket is available from an authorized source when the ticket is being offered through resale.
(2) A live entertainment event is sold out when tickets remain available from the original seller or an authorized seller.
(3) A consumer is purchasing a ticket from an event presenter, venue operator, rights holder, original seller, or authorized agent when the consumer is purchasing from a reseller or ticket resale marketplace.
(4) A ticket listing reflects a specific seat, section, row, or location if the seller does not have a reasonable basis to make that representation.
(d) A violation of this section constitutes false or misleading advertising for purposes of Chapter 1 (commencing with Section 17500) of Part 3 of Division 7.

SEC. 10.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.