Researcher: MH Page 1 3/21/24 OLR Bill Analysis SB 15 AN ACT REQUIRING FEE DISCLOSURES. SUMMARY This bill prohibits individuals or legal entities doing business in Connecticut from advertising, displaying, or offering pricing for certain items or services unless they disclose the total price in a clear and obvious way. This applies to (1) event tickets in any form, whether issued by a primary or secondary (i.e., reselling) ticket platform and (2) consumer goods or services on food delivery platforms, lodging platforms, or primary or secondary ticket platforms. Under the bill, the total price must include all mandatory fees or charges, other than taxes. A violation of the bill is an unfair or deceptive trade practice (see BACKGROUND) . EFFECTIVE DATE: October 1, 2024 DEFINITIONS Under the bill, a ”consumer good or service” is any good or service that is purchased, leased, or rented primarily for personal, family, or household purposes, specifically including the items covered by this bill (e.g., event tickets). A “consumer” is a state resident and prospective recipient of these goods or services. A “food delivery platform” is any digital platform, operated by third- party delivery services, that facilitates any consumer’s effort to order any food or beverage online or get it delivered. A “lodging platform” is any short-term rental platform and digital platform that facilitates any consumer’s effort to search for and purchase the right to occupy any hotel or motel room or similar lodging. 2024SB-00015-R000067-BA.DOCX Researcher: MH Page 2 3/21/24 A “primary ticket platform” is any digital platform that provides or facilitates event ticket sales to consumers. A “secondary ticket platform” is any digital platform that provides or facilities event ticket resales to consumers, including primary ticket platforms that also provide or facilitate resales. BACKGROUND Connecticut Unfair Trade Practices Act (CUTPA) The law prohibits businesses from engaging in unfair and deceptive acts or practices. CUTPA allows the consumer protection commissioner to issue regulations defining what constitutes an unfair trade practice, investigate complaints, issue cease and desist orders, order restitution in cases involving less than $10,000, enter into consent agreements, ask the attorney general to seek injunctive relief, and accept voluntary statements of compliance. It also allows individuals to sue. Courts may issue restraining orders; award actual and punitive damages, costs, and reasonable attorney’s fees; and impose civil penalties of up to $5,000 for willful violations and $25,000 for violation of a restraining order. Entertainment Ticket Charge Disclosures Generally, existing law requires anyone advertising entertainment event ticket prices to conspicuously disclose the total price for each ticket and the amount of that price attributable to service charges imposed for the sale of the ticket at the event site. The law also requires anyone who facilitates ticket sales or resales for an entertainment event to disclose the (1) total ticket price, including all service charges, and (2) portion of the charged ticket attributable to service charges. These disclosures must be displayed in the ticket listing before the ticket is selected for purchase. Operators who charge an admission price for a place of entertainment must disclose on each ticket face for an event the (1) established ticket price and (2) final ticket price if the operator or his or her agent sells or resells it (CGS § 53-289a). Related Bills 2024SB-00015-R000067-BA.DOCX Researcher: MH Page 3 3/21/24 sSB 3, § 3, favorably reported by the General Law Committee, generally prohibits businesses that offer to sell, lease, or provide consumer goods or services from advertising, displaying, or offering the good or service at a price unless it includes any charges and fees, other than taxes. sSB 201, § 1, favorably reported by the General Law Committee, prohibits anyone from advertising, displaying, or offering any price in trade or commerce unless the price includes all charges and fees, other than taxes. COMMITTEE ACTION General Law Committee Joint Favorable Yea 22 Nay 0 (03/07/2024)