EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. Underlining indicates amendments to bill. Strike out indicates matter stricken from the bill by amendment or deleted from the law by amendment. *sb0539* SENATE BILL 539 I3 4lr2346 CF HB 701 By: Senators Gile, Feldman, Beidle, and Ellis Introduced and read first time: January 24, 2024 Assigned to: Finance Committee Report: Favorable with amendments Senate action: Adopted with floor amendments Read second time: February 29, 2024 CHAPTER ______ AN ACT concerning 1 Commercial Law – Consumer Protection – Sale and Resale of Tickets 2 FOR the purpose of requiring the listing for a ticket and each step of a transaction to 3 purchase a ticket to disclose certain information; requiring a reseller to provide the 4 contact information of the resale ticket purchaser to the ticket issuer for a certain 5 purpose; prohibiting a reseller from selling or offering to sell a ticket for more than 6 a certain price; limiting the fee that a secondary ticket exchange may charge for the 7 service of providing a marketplace for the resale of a ticket; prohibiting a person from 8 restricting the transfer or resale of a ticket that was made available to the general 9 public for purchase, subject to certain restrictions; repealing the exceptions to the 10 prohibition against a reseller selling or offering to sell speculative tickets; prohibiting 11 a secondary ticket exchange from providing a marketplace for the resale of a ticket 12 that violates this Act; requiring a ticket issuer, secondary ticket exchange, or reseller 13 to provide a refund under certain conditions; and generally relating to consumer 14 protection and the sale and resale of tickets. 15 BY repealing and reenacting, with amendments, 16 Article – Commercial Law 17 Section 13–310.1 18 Annotated Code of Maryland 19 (2013 Replacement Volume and 2023 Supplement) 20 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21 That the Laws of Maryland read as follows: 22 2 SENATE BILL 539 Article – Commercial Law 1 13–310.1. 2 (a) (1) In this section the following words have the meanings indicated. 3 (2) (i) “Resale” means the second or subsequent sale of a ticket. 4 (ii) “Resale” includes a sale by any means, including in person, by 5 telephone, by mail, by e–mail, by facsimile, or through a website or other electronic means. 6 (3) “Reseller” means a person [who offers a ticket for resale] ENGAGED IN 7 THE RESALE OF TICKETS . 8 (4) “SECONDARY TICKET EXCH ANGE” MEANS AN ELECTRONIC 9 MARKETPLACE THAT ENA BLES CONSUMERS A PERSON TO SELL, PURCHASE, AND 10 RESELL TICKETS . 11 (5) (i) “Speculative ticket” means a ticket that is not in the actual or 12 constructive possession of a reseller at the time of sale, ADVERTISEMENT , OR LISTING. 13 (ii) “Speculative ticket” includes a ticket sold by a reseller that, at 14 the time of resale: 15 1. Is not in the physical possession of the reseller; 16 2. Is not owned by the reseller; or 17 3. Is not under contract to be transferred to the reseller. 18 [(5)] (6) “Ticket” means physical, electronic, or other evidence, that 19 grants the possessor of the evidence [permission] LICENSE to enter a place of 20 entertainment for one or more events at a specified date and time. 21 (7) (I) “TICKET ISSUER” MEANS A PERSON THAT , DIRECTLY OR 22 INDIRECTLY, ISSUES INITIAL TICKE TS FOR AN ENTERTAINM ENT EVENT. 23 (II) “TICKET ISSUER” INCLUDES: 24 1. A MUSICIAN OR MUSICAL GROUP; 25 2. AN OPERATOR OF A VENU E; 26 3. A SPONSOR OR A PROMOTE R OF AN ENTERTAINMEN T 27 EVENT; 28 SENATE BILL 539 3 4. A SPORTS TEAM PARTICIP ATING IN AN 1 ENTERTAINMENT EVENT ; 2 5. A SPORTS LEAGUE WHOSE TEAMS ARE 3 PARTICIPATING IN AN ENTERTAINMENT EVENT; 4 6. A THEATER COMPANY ; 5 7. A MARKETPLACE OPERATED FOR CONSUMERS TO 6 MAKE AN INITIAL PURC HASE OF TICKETS ; OR 7 8. AN AGENT OF ANY OF TH E PERSONS LISTED IN ITEMS 8 1 THROUGH 7 OF THIS SUBPARAGRAPH . 9 (B) (1) THIS SUBSECTION APPLI ES ONLY TO SEC ONDARY TICKET 10 EXCHANGES , TICKET ISSUERS, AND RESELLERS . 11 (2) THE LISTING FOR A TIC KET AND EACH STEP OF A TRANSACTION 12 TO PURCHASE A TICKET SHALL: 13 (I) CLEARLY AND CONSPICUOUSLY DI SCLOSE THE TOTAL 14 PRICE OF THE TICKET , INCLUDING ALL FEES A ND TAXES OTHER THAN SHIPPING 15 COSTS THAT ARE NOT D ETERMINABLE AT A STE P IN THE TRANSACTION ; 16 (II) PROVIDE AN ITEMIZED L ISTING OF ALL CHARGE S THAT 17 COMPRISE THE TOTAL P RICE OF THE TICKET , INCLUDING ALL FEES A ND TAXES; AND 18 (III) IDENTIFY THE SEAT NUM BER AND ZONE OR SE CTION OF THE 19 TICKET, TO THE EXTENT APPLIC ABLE TO THE SEAT AND VENUE. 20 (3) (I) THE TOTAL PRICE OF A TICKET UNDER PARAGRA PH (2)(I) 21 OF THIS SUBSECTION M AY BE INCREASED IN A NONINITIAL STEP OF A TRANSACTION 22 BY THE AMOUNT OF REA SONABLE SHIPPING COS TS FOR PHYS ICALLY DELIVERED 23 TICKETS. 24 (II) THE SHIPPING COSTS AL LOWED UNDER SUBPARAG RAPH (I) 25 OF THIS PARAGRAPH MA Y VARY WITH THE PURC HASER’S LOCATION RELATIVE TO 26 THE SHIPMENT ’S LOCATION OF ORIGIN AND THE DELIVERY MET HOD SELECTED BY 27 THE PURCHASER . 28 (III) THE TOTAL PRICE OF THE T ICKET, INCLUDING ALL FEES , 29 TAXES, AND SHIPPING COSTS , SHALL BE CLEARLY AND CONSPICUOUSLY DISCLO SED 30 PRIOR TO FINAL PURCH ASE OF THE TICKET . 31 4 SENATE BILL 539 (C) A RESELLER SHALL PROVI DE THE TICKET ISSUER WITH THE CONTACT 1 INFORMATION OF THE R ESALE TICKET PURCHASER TO ENABLE THE TICKET IS SUER 2 TO NOTIFY THE RESALE TICKET PURCHASER OF ANY CHANGE IN THE EV ENT 3 CIRCUMSTANCES , SUCH AS AN EVENT CAN CELLATION OR RESCHED ULING. 4 (D) (1) THIS SUBSECTION DOES NOT APPLY TO A FEE T HAT A SECONDARY 5 TICKET EXCHANGE M AY CHARGE FOR THE SE RVICE OF PROVIDING A MARKETPLACE 6 FOR THE RESALE OF A TICKET. 7 (2) (I) EXCEPT AS PROVIDED UN DER SUBPARAGRAPH (II) OF THIS 8 PARAGRAPH , THE TOTAL PRICE AT W HICH A RESELLER MAY SELL OR OFFER TO SEL L 9 A TICKET MAY NOT EXC EED THE TOTAL PRICE OF THE INITIAL TICKE T, INCLUDING 10 ALL FEES AND TAXES I N CONNECTION WITH TH E INITIAL TICKET. 11 (II) IF INITIAL TICKETS WE RE PURCHASED FOR A S ERIES OF 12 EVENTS, SUCH AS SEASON TICKE TS FOR A SPORTS TEAM , THE TOTAL RESALE PRI CE 13 OF A TICKET FOR A SI NGLE EVENT MA Y NOT EXCEED THE TOT AL PRICE OF A 14 COMPARABLE TICKET , INCLUDING ALL FEES A ND TAXES. 15 (E) THE FEE THAT A SECOND ARY TICKET EXCHANGE MAY CHARGE FOR THE 16 SERVICE OF PROVIDING A MARKETPLACE FOR TH E RESALE OF A TICKET MAY NOT 17 EXCEED 10% OF THE TOTAL PRICE O F THE INITIAL TICKET. 18 (F) SUBJECT TO REASONABLE RESTRICTIONS IMPOSED BY A TICKET 19 ISSUER, A PERSON MAY NOT PRO HIBIT OR RESTRICT TH E TRANSFER OR RESALE OF 20 A TICKET THAT WAS MA DE AVAILABLE TO THE GENERAL PUBLIC FOR P URCHASE. 21 [(b)] (G) (C) A reseller may not sell or offer to sell speculative tickets [unless the 22 reseller, clearly and conspicuously, discloses to a prospective purchaser at the outset of the 23 sales transaction: 24 (1) That the tickets are speculative tickets, and the reseller is not in 25 possession of the tickets; 26 (2) That the reseller is making an offer to procure the tickets for the 27 prospective purchaser; 28 (3) An approximate date on which the tickets will be delivered to the 29 purchaser; 30 (4) The name or a description of the event for which the tickets will permit 31 entry; 32 (5) The total number of tickets included in the transaction; 33 SENATE BILL 539 5 (6) The number of tickets for seats that are together; 1 (7) The zone or section number of the tickets, to the extent applicable to 2 the venue; and 3 (8) For reserved seat tickets: 4 (i) The seat numbers of the tickets; or 5 (ii) If applicable, that the reseller cannot guarantee the specific seats 6 because the tickets are speculative tickets. 7 (c) (1) A reseller shall refund to a purchaser any consideration or deposit paid 8 for tickets sold under this section if the reseller fails to obtain the tickets: 9 (i) Within 24 hours after the approximate date of delivery specified 10 in subsection (b)(2) of this section, but before the commencement of the event for which the 11 tickets were sold; or 12 (ii) In conformity with the disclosures required under this section. 13 (2) A reseller shall make a refund required under this subsection not later 14 than 10 days after the final day of the event for which the tickets were sold]. 15 (H) (D) A SECONDARY TICKET EXC HANGE MAY NOT PROVID E A 16 MARKETPLACE FOR THE SALE OR RESALE OF A TICKET T HAT VIOLATES THIS 17 SECTION. 18 (E) A TICKET ISSUER, SECONDARY TICKET EXC HANGE, OR RESELLER WHO 19 DIRECTLY ENGAGES IN A SALES TRANSACTION WITH A PURCHASER FOR THE 20 PURCHASE OF A TICKET SHALL PROVIDE A THE PURCHASER WITH A FUL L REFUND 21 OF THE TOTAL AMOUNT PAID, INCLUDING THE PRICE OF THE TICKET AND AN Y FEES 22 AND TAXES, IF: 23 (1) THE TICKET PURCHASED IS COUNTERFEIT ; 24 (2) THE EVENT FOR WHICH T HE TICKET IS PURCHAS ED IS CANCELED; 25 OR 26 (3) THE TICKET FAILS TO C ONFORM TO THE DESCRI PTION AS 27 ADVERTISED OR REPRES ENTED TO THE PURCHAS ER BY THE SELLER . 28 SECTION 2. AND BE IT FURTHER ENACTED, That: 29 6 SENATE BILL 539 (a) The Consumer Protection Division of the Office of the Attorney General, with 1 input from relevant stakeholders, shall conduct a review of the event ticket market in the 2 State. 3 (b) The review required under subsection (a) of this section shall include, to the 4 extent feasible, an assessment of: 5 (1) how event tickets are obtained for resale by professional resellers and 6 brokers; 7 (2) the cost of event tickets offered to and purchased by consumers on the 8 resale market when compared with the face values and total event ticket prices for tickets 9 offered to and purchased by consumers in the primary event ticket market; 10 (3) factors contributing to the cost of event tickets sold and offered for sale 11 on the resale market; 12 (4) problems consumers are encountering relating to the purchase of event 13 tickets sold and offered for sale on the resale market, including: 14 (i) the fraudulent sale of event tickets; 15 (ii) the sale of counterfeit tickets; 16 (iii) the denial of entry to events for which tickets were purchased by 17 consumers; and 18 (iv) the use of bots to purchase for resale tickets for in–demand 19 events; 20 (5) the impact of any measures taken in other states to protect consumers 21 in the event ticket market, such as through resale price caps, limits on fees and charges by 22 secondary market resale platforms, requiring the transferability of event tickets, and 23 restrictions on the use of bots to purchase tickets for resale; and 24 (6) any other matters identified as relevant to the protection of consumers 25 in the event ticket market. 26 (c) On or before December 1, 2024, the Consumer Protection Division of the Office 27 of the Attorney General shall submit a report with findings and recommendations from the 28 review required under this section to the Senate Finance Committee and the House 29 Economic Matters Committee, in accordance with § 2–1257 of the State Government 30 Article. 31 SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 32 October July 1, 2024. 33 SENATE BILL 539 7 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ President of the Senate. ________________________________________________________________________________ Speaker of the House of Delegates.