Amended IN Senate March 27, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Senate Bill No. 342Introduced by Senator HertzbergFebruary 19, 2019 An act to amend Section 326 of the Business and Professions Code, relating to consumer complaints. An act to add Section 17500.10 to the Business and Professions Code, relating to unfair competition.LEGISLATIVE COUNSEL'S DIGESTSB 342, as amended, Hertzberg. Consumer complaints. Unfair Competition Law: ticket websites.Existing law, the Consumers Legal Remedies Act, prohibits the misrepresentation of the source, sponsorship, approval, or certification of goods or services by a person in a transaction intended to result or that actually results in the sale of goods or services to a consumer. The act further prohibits the misrepresentation of the affiliation, connection, or association with another by a person in a transaction intended to result or that results in the sale of goods or services to a consumer.The Unfair Competition Law (UCL) establishes a statutory cause of action for unfair competition, including any unlawful, unfair, or fraudulent business act or practice and unfair, deceptive, untrue, or misleading advertising, including over the internet. The UCL further prohibits a person to, with bad faith intent, register, traffic in, or use a domain name that is confusingly similar to the personal name of another person.Existing federal law, the Lanham Act, governs the registration and use of trademarks, including by prohibiting infringement of registered trademarks and providing specified defenses to an accusation of trademark infringement.This bill would prohibit, as a violation of the UCL, a ticket website operator, as defined, from using specified elements, including the name of a specific team, league, or venue where live entertainment events are held, in the uniform resource locator (URL) of a ticket website, as defined. Under the bill, the prohibitions would not apply to a person who acts on behalf of, and with the consent of, the venue, event, artist, or sports team for which the ticket website is created. The bill would prohibit a ticket website from similarly using a trademark that it does not own and would create a private civil right of action for a violation of these provisions.The Consumer Affairs Act requires the Director of the Department of Consumer Affairs to administer and enforce that act to protect and promote the interests of consumers regarding the purchase of goods or services. The director, upon receipt of a consumer complaint relating to specified violations, is required to transmit any valid complaint to the local, state, or federal agency whose authority provides the most effective means to secure the relief. The act requires the director to advise the consumer of the action taken on the complaint, as appropriate, and of any other means that may be available to the consumer to secure relief.This bill would make nonsubstantive changes to those consumer complaint provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 17500.10 is added to the Business and Professions Code, to read:17500.10. (a) For purposes of this section:(1) Ticket website means an internet website or mobile application that advertises the sale or resale of tickets, or offers the sale or resale of tickets.(2) Ticket website operator means a person who owns, operates, manages, licenses, or controls a ticket website.(3) URL means the uniform resource locator for an internet website, which may include both a domain name and subdomain names.(b) A ticket website operator shall not use a subdomain or domain name in that ticket websites URL that contains any of the following: (1) The name of a specific team, league, or venue where concerts, sports, or other live entertainment events are held.(2) The name of a specific event, performance, or exhibition, including the name of a person, team, performance, group, or entity scheduled to perform or appear at that event.(3) A trademark not owned by the website operator, including, but not limited to, a trademark owned by authorized agents or partners of the venue or event identified pursuant to paragraph (1) or (2).(4) A name or names substantially similar to those referred to in this subdivision, including, but not limited to, a misspelling of a name or names referred to in paragraph (1), (2), or (3).(c) Subdivision (b) does not apply to a person who acts with the consent of either of the following with respect to the sale or resale of tickets:(1) A person identified pursuant to paragraph (1) or (2) of subdivision (b).(2) An authorized agent or partner of a party identified pursuant to paragraph (1) or (2) of subdivision (b).(d) A violation of the provisions of this section shall constitute unfair competition pursuant to Chapter 5 (commencing with Section 17200) of Part 2.(e) A party harmed by a violation of this provision may bring an action against the identified violator seeking actual, consequential, and punitive damages and shall be awarded reasonable attorneys fees if the action is resolved in its favor.SECTION 1.Section 326 of the Business and Professions Code is amended to read:326.(a)Upon receipt of a complaint pursuant to Section 325, the director may notify the person against whom the complaint is made of the nature of the complaint and may request appropriate relief for the consumer.(b)(1)The director shall also transmit any valid complaint to the local, state, or federal agency whose authority provides the most effective means to secure the relief.(2)The director shall, if appropriate, advise the consumer of the action taken on the complaint and of any other means that may be available to the consumer to secure relief.(c)If the director receives a complaint or receives information from any source indicating a probable violation of any law, rule, or order of any regulatory agency of the state or if a pattern of complaints from consumers develops, the director shall transmit any complaint the director considers to be valid to any appropriate law enforcement or regulatory agency and any evidence or information the director may have concerning the probable violation or pattern of complaints or request the Attorney General to undertake appropriate legal action. It shall be the continuing duty of the director to discern patterns of complaints and to ascertain the nature and extent of action taken with respect to the probable violations or pattern of complaints. Amended IN Senate March 27, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Senate Bill No. 342Introduced by Senator HertzbergFebruary 19, 2019 An act to amend Section 326 of the Business and Professions Code, relating to consumer complaints. An act to add Section 17500.10 to the Business and Professions Code, relating to unfair competition.LEGISLATIVE COUNSEL'S DIGESTSB 342, as amended, Hertzberg. Consumer complaints. Unfair Competition Law: ticket websites.Existing law, the Consumers Legal Remedies Act, prohibits the misrepresentation of the source, sponsorship, approval, or certification of goods or services by a person in a transaction intended to result or that actually results in the sale of goods or services to a consumer. The act further prohibits the misrepresentation of the affiliation, connection, or association with another by a person in a transaction intended to result or that results in the sale of goods or services to a consumer.The Unfair Competition Law (UCL) establishes a statutory cause of action for unfair competition, including any unlawful, unfair, or fraudulent business act or practice and unfair, deceptive, untrue, or misleading advertising, including over the internet. The UCL further prohibits a person to, with bad faith intent, register, traffic in, or use a domain name that is confusingly similar to the personal name of another person.Existing federal law, the Lanham Act, governs the registration and use of trademarks, including by prohibiting infringement of registered trademarks and providing specified defenses to an accusation of trademark infringement.This bill would prohibit, as a violation of the UCL, a ticket website operator, as defined, from using specified elements, including the name of a specific team, league, or venue where live entertainment events are held, in the uniform resource locator (URL) of a ticket website, as defined. Under the bill, the prohibitions would not apply to a person who acts on behalf of, and with the consent of, the venue, event, artist, or sports team for which the ticket website is created. The bill would prohibit a ticket website from similarly using a trademark that it does not own and would create a private civil right of action for a violation of these provisions.The Consumer Affairs Act requires the Director of the Department of Consumer Affairs to administer and enforce that act to protect and promote the interests of consumers regarding the purchase of goods or services. The director, upon receipt of a consumer complaint relating to specified violations, is required to transmit any valid complaint to the local, state, or federal agency whose authority provides the most effective means to secure the relief. The act requires the director to advise the consumer of the action taken on the complaint, as appropriate, and of any other means that may be available to the consumer to secure relief.This bill would make nonsubstantive changes to those consumer complaint provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Amended IN Senate March 27, 2019 Amended IN Senate March 27, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Senate Bill No. 342 Introduced by Senator HertzbergFebruary 19, 2019 Introduced by Senator Hertzberg February 19, 2019 An act to amend Section 326 of the Business and Professions Code, relating to consumer complaints. An act to add Section 17500.10 to the Business and Professions Code, relating to unfair competition. LEGISLATIVE COUNSEL'S DIGEST ## LEGISLATIVE COUNSEL'S DIGEST SB 342, as amended, Hertzberg. Consumer complaints. Unfair Competition Law: ticket websites. Existing law, the Consumers Legal Remedies Act, prohibits the misrepresentation of the source, sponsorship, approval, or certification of goods or services by a person in a transaction intended to result or that actually results in the sale of goods or services to a consumer. The act further prohibits the misrepresentation of the affiliation, connection, or association with another by a person in a transaction intended to result or that results in the sale of goods or services to a consumer.The Unfair Competition Law (UCL) establishes a statutory cause of action for unfair competition, including any unlawful, unfair, or fraudulent business act or practice and unfair, deceptive, untrue, or misleading advertising, including over the internet. The UCL further prohibits a person to, with bad faith intent, register, traffic in, or use a domain name that is confusingly similar to the personal name of another person.Existing federal law, the Lanham Act, governs the registration and use of trademarks, including by prohibiting infringement of registered trademarks and providing specified defenses to an accusation of trademark infringement.This bill would prohibit, as a violation of the UCL, a ticket website operator, as defined, from using specified elements, including the name of a specific team, league, or venue where live entertainment events are held, in the uniform resource locator (URL) of a ticket website, as defined. Under the bill, the prohibitions would not apply to a person who acts on behalf of, and with the consent of, the venue, event, artist, or sports team for which the ticket website is created. The bill would prohibit a ticket website from similarly using a trademark that it does not own and would create a private civil right of action for a violation of these provisions.The Consumer Affairs Act requires the Director of the Department of Consumer Affairs to administer and enforce that act to protect and promote the interests of consumers regarding the purchase of goods or services. The director, upon receipt of a consumer complaint relating to specified violations, is required to transmit any valid complaint to the local, state, or federal agency whose authority provides the most effective means to secure the relief. The act requires the director to advise the consumer of the action taken on the complaint, as appropriate, and of any other means that may be available to the consumer to secure relief.This bill would make nonsubstantive changes to those consumer complaint provisions. Existing law, the Consumers Legal Remedies Act, prohibits the misrepresentation of the source, sponsorship, approval, or certification of goods or services by a person in a transaction intended to result or that actually results in the sale of goods or services to a consumer. The act further prohibits the misrepresentation of the affiliation, connection, or association with another by a person in a transaction intended to result or that results in the sale of goods or services to a consumer. The Unfair Competition Law (UCL) establishes a statutory cause of action for unfair competition, including any unlawful, unfair, or fraudulent business act or practice and unfair, deceptive, untrue, or misleading advertising, including over the internet. The UCL further prohibits a person to, with bad faith intent, register, traffic in, or use a domain name that is confusingly similar to the personal name of another person. Existing federal law, the Lanham Act, governs the registration and use of trademarks, including by prohibiting infringement of registered trademarks and providing specified defenses to an accusation of trademark infringement. This bill would prohibit, as a violation of the UCL, a ticket website operator, as defined, from using specified elements, including the name of a specific team, league, or venue where live entertainment events are held, in the uniform resource locator (URL) of a ticket website, as defined. Under the bill, the prohibitions would not apply to a person who acts on behalf of, and with the consent of, the venue, event, artist, or sports team for which the ticket website is created. The bill would prohibit a ticket website from similarly using a trademark that it does not own and would create a private civil right of action for a violation of these provisions. The Consumer Affairs Act requires the Director of the Department of Consumer Affairs to administer and enforce that act to protect and promote the interests of consumers regarding the purchase of goods or services. The director, upon receipt of a consumer complaint relating to specified violations, is required to transmit any valid complaint to the local, state, or federal agency whose authority provides the most effective means to secure the relief. The act requires the director to advise the consumer of the action taken on the complaint, as appropriate, and of any other means that may be available to the consumer to secure relief. This bill would make nonsubstantive changes to those consumer complaint provisions. ## Digest Key ## Bill Text The people of the State of California do enact as follows:SECTION 1. Section 17500.10 is added to the Business and Professions Code, to read:17500.10. (a) For purposes of this section:(1) Ticket website means an internet website or mobile application that advertises the sale or resale of tickets, or offers the sale or resale of tickets.(2) Ticket website operator means a person who owns, operates, manages, licenses, or controls a ticket website.(3) URL means the uniform resource locator for an internet website, which may include both a domain name and subdomain names.(b) A ticket website operator shall not use a subdomain or domain name in that ticket websites URL that contains any of the following: (1) The name of a specific team, league, or venue where concerts, sports, or other live entertainment events are held.(2) The name of a specific event, performance, or exhibition, including the name of a person, team, performance, group, or entity scheduled to perform or appear at that event.(3) A trademark not owned by the website operator, including, but not limited to, a trademark owned by authorized agents or partners of the venue or event identified pursuant to paragraph (1) or (2).(4) A name or names substantially similar to those referred to in this subdivision, including, but not limited to, a misspelling of a name or names referred to in paragraph (1), (2), or (3).(c) Subdivision (b) does not apply to a person who acts with the consent of either of the following with respect to the sale or resale of tickets:(1) A person identified pursuant to paragraph (1) or (2) of subdivision (b).(2) An authorized agent or partner of a party identified pursuant to paragraph (1) or (2) of subdivision (b).(d) A violation of the provisions of this section shall constitute unfair competition pursuant to Chapter 5 (commencing with Section 17200) of Part 2.(e) A party harmed by a violation of this provision may bring an action against the identified violator seeking actual, consequential, and punitive damages and shall be awarded reasonable attorneys fees if the action is resolved in its favor.SECTION 1.Section 326 of the Business and Professions Code is amended to read:326.(a)Upon receipt of a complaint pursuant to Section 325, the director may notify the person against whom the complaint is made of the nature of the complaint and may request appropriate relief for the consumer.(b)(1)The director shall also transmit any valid complaint to the local, state, or federal agency whose authority provides the most effective means to secure the relief.(2)The director shall, if appropriate, advise the consumer of the action taken on the complaint and of any other means that may be available to the consumer to secure relief.(c)If the director receives a complaint or receives information from any source indicating a probable violation of any law, rule, or order of any regulatory agency of the state or if a pattern of complaints from consumers develops, the director shall transmit any complaint the director considers to be valid to any appropriate law enforcement or regulatory agency and any evidence or information the director may have concerning the probable violation or pattern of complaints or request the Attorney General to undertake appropriate legal action. It shall be the continuing duty of the director to discern patterns of complaints and to ascertain the nature and extent of action taken with respect to the probable violations or pattern of complaints. The people of the State of California do enact as follows: ## The people of the State of California do enact as follows: SECTION 1. Section 17500.10 is added to the Business and Professions Code, to read:17500.10. (a) For purposes of this section:(1) Ticket website means an internet website or mobile application that advertises the sale or resale of tickets, or offers the sale or resale of tickets.(2) Ticket website operator means a person who owns, operates, manages, licenses, or controls a ticket website.(3) URL means the uniform resource locator for an internet website, which may include both a domain name and subdomain names.(b) A ticket website operator shall not use a subdomain or domain name in that ticket websites URL that contains any of the following: (1) The name of a specific team, league, or venue where concerts, sports, or other live entertainment events are held.(2) The name of a specific event, performance, or exhibition, including the name of a person, team, performance, group, or entity scheduled to perform or appear at that event.(3) A trademark not owned by the website operator, including, but not limited to, a trademark owned by authorized agents or partners of the venue or event identified pursuant to paragraph (1) or (2).(4) A name or names substantially similar to those referred to in this subdivision, including, but not limited to, a misspelling of a name or names referred to in paragraph (1), (2), or (3).(c) Subdivision (b) does not apply to a person who acts with the consent of either of the following with respect to the sale or resale of tickets:(1) A person identified pursuant to paragraph (1) or (2) of subdivision (b).(2) An authorized agent or partner of a party identified pursuant to paragraph (1) or (2) of subdivision (b).(d) A violation of the provisions of this section shall constitute unfair competition pursuant to Chapter 5 (commencing with Section 17200) of Part 2.(e) A party harmed by a violation of this provision may bring an action against the identified violator seeking actual, consequential, and punitive damages and shall be awarded reasonable attorneys fees if the action is resolved in its favor. SECTION 1. Section 17500.10 is added to the Business and Professions Code, to read: ### SECTION 1. 17500.10. (a) For purposes of this section:(1) Ticket website means an internet website or mobile application that advertises the sale or resale of tickets, or offers the sale or resale of tickets.(2) Ticket website operator means a person who owns, operates, manages, licenses, or controls a ticket website.(3) URL means the uniform resource locator for an internet website, which may include both a domain name and subdomain names.(b) A ticket website operator shall not use a subdomain or domain name in that ticket websites URL that contains any of the following: (1) The name of a specific team, league, or venue where concerts, sports, or other live entertainment events are held.(2) The name of a specific event, performance, or exhibition, including the name of a person, team, performance, group, or entity scheduled to perform or appear at that event.(3) A trademark not owned by the website operator, including, but not limited to, a trademark owned by authorized agents or partners of the venue or event identified pursuant to paragraph (1) or (2).(4) A name or names substantially similar to those referred to in this subdivision, including, but not limited to, a misspelling of a name or names referred to in paragraph (1), (2), or (3).(c) Subdivision (b) does not apply to a person who acts with the consent of either of the following with respect to the sale or resale of tickets:(1) A person identified pursuant to paragraph (1) or (2) of subdivision (b).(2) An authorized agent or partner of a party identified pursuant to paragraph (1) or (2) of subdivision (b).(d) A violation of the provisions of this section shall constitute unfair competition pursuant to Chapter 5 (commencing with Section 17200) of Part 2.(e) A party harmed by a violation of this provision may bring an action against the identified violator seeking actual, consequential, and punitive damages and shall be awarded reasonable attorneys fees if the action is resolved in its favor. 17500.10. (a) For purposes of this section:(1) Ticket website means an internet website or mobile application that advertises the sale or resale of tickets, or offers the sale or resale of tickets.(2) Ticket website operator means a person who owns, operates, manages, licenses, or controls a ticket website.(3) URL means the uniform resource locator for an internet website, which may include both a domain name and subdomain names.(b) A ticket website operator shall not use a subdomain or domain name in that ticket websites URL that contains any of the following: (1) The name of a specific team, league, or venue where concerts, sports, or other live entertainment events are held.(2) The name of a specific event, performance, or exhibition, including the name of a person, team, performance, group, or entity scheduled to perform or appear at that event.(3) A trademark not owned by the website operator, including, but not limited to, a trademark owned by authorized agents or partners of the venue or event identified pursuant to paragraph (1) or (2).(4) A name or names substantially similar to those referred to in this subdivision, including, but not limited to, a misspelling of a name or names referred to in paragraph (1), (2), or (3).(c) Subdivision (b) does not apply to a person who acts with the consent of either of the following with respect to the sale or resale of tickets:(1) A person identified pursuant to paragraph (1) or (2) of subdivision (b).(2) An authorized agent or partner of a party identified pursuant to paragraph (1) or (2) of subdivision (b).(d) A violation of the provisions of this section shall constitute unfair competition pursuant to Chapter 5 (commencing with Section 17200) of Part 2.(e) A party harmed by a violation of this provision may bring an action against the identified violator seeking actual, consequential, and punitive damages and shall be awarded reasonable attorneys fees if the action is resolved in its favor. 17500.10. (a) For purposes of this section:(1) Ticket website means an internet website or mobile application that advertises the sale or resale of tickets, or offers the sale or resale of tickets.(2) Ticket website operator means a person who owns, operates, manages, licenses, or controls a ticket website.(3) URL means the uniform resource locator for an internet website, which may include both a domain name and subdomain names.(b) A ticket website operator shall not use a subdomain or domain name in that ticket websites URL that contains any of the following: (1) The name of a specific team, league, or venue where concerts, sports, or other live entertainment events are held.(2) The name of a specific event, performance, or exhibition, including the name of a person, team, performance, group, or entity scheduled to perform or appear at that event.(3) A trademark not owned by the website operator, including, but not limited to, a trademark owned by authorized agents or partners of the venue or event identified pursuant to paragraph (1) or (2).(4) A name or names substantially similar to those referred to in this subdivision, including, but not limited to, a misspelling of a name or names referred to in paragraph (1), (2), or (3).(c) Subdivision (b) does not apply to a person who acts with the consent of either of the following with respect to the sale or resale of tickets:(1) A person identified pursuant to paragraph (1) or (2) of subdivision (b).(2) An authorized agent or partner of a party identified pursuant to paragraph (1) or (2) of subdivision (b).(d) A violation of the provisions of this section shall constitute unfair competition pursuant to Chapter 5 (commencing with Section 17200) of Part 2.(e) A party harmed by a violation of this provision may bring an action against the identified violator seeking actual, consequential, and punitive damages and shall be awarded reasonable attorneys fees if the action is resolved in its favor. 17500.10. (a) For purposes of this section: (1) Ticket website means an internet website or mobile application that advertises the sale or resale of tickets, or offers the sale or resale of tickets. (2) Ticket website operator means a person who owns, operates, manages, licenses, or controls a ticket website. (3) URL means the uniform resource locator for an internet website, which may include both a domain name and subdomain names. (b) A ticket website operator shall not use a subdomain or domain name in that ticket websites URL that contains any of the following: (1) The name of a specific team, league, or venue where concerts, sports, or other live entertainment events are held. (2) The name of a specific event, performance, or exhibition, including the name of a person, team, performance, group, or entity scheduled to perform or appear at that event. (3) A trademark not owned by the website operator, including, but not limited to, a trademark owned by authorized agents or partners of the venue or event identified pursuant to paragraph (1) or (2). (4) A name or names substantially similar to those referred to in this subdivision, including, but not limited to, a misspelling of a name or names referred to in paragraph (1), (2), or (3). (c) Subdivision (b) does not apply to a person who acts with the consent of either of the following with respect to the sale or resale of tickets: (1) A person identified pursuant to paragraph (1) or (2) of subdivision (b). (2) An authorized agent or partner of a party identified pursuant to paragraph (1) or (2) of subdivision (b). (d) A violation of the provisions of this section shall constitute unfair competition pursuant to Chapter 5 (commencing with Section 17200) of Part 2. (e) A party harmed by a violation of this provision may bring an action against the identified violator seeking actual, consequential, and punitive damages and shall be awarded reasonable attorneys fees if the action is resolved in its favor. (a)Upon receipt of a complaint pursuant to Section 325, the director may notify the person against whom the complaint is made of the nature of the complaint and may request appropriate relief for the consumer. (b)(1)The director shall also transmit any valid complaint to the local, state, or federal agency whose authority provides the most effective means to secure the relief. (2)The director shall, if appropriate, advise the consumer of the action taken on the complaint and of any other means that may be available to the consumer to secure relief. (c)If the director receives a complaint or receives information from any source indicating a probable violation of any law, rule, or order of any regulatory agency of the state or if a pattern of complaints from consumers develops, the director shall transmit any complaint the director considers to be valid to any appropriate law enforcement or regulatory agency and any evidence or information the director may have concerning the probable violation or pattern of complaints or request the Attorney General to undertake appropriate legal action. It shall be the continuing duty of the director to discern patterns of complaints and to ascertain the nature and extent of action taken with respect to the probable violations or pattern of complaints.