Maryland 2024 Regular Session

Maryland Senate Bill SB539 Latest Draft

Bill / Chaptered Version Filed 05/15/2024

                             	WES MOORE, Governor 	Ch. 456 
 
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Chapter 456 
(Senate Bill 539) 
 
AN ACT concerning 
 
Commercial Law – Consumer Protection – Sale and Resale of Tickets 
 
FOR the purpose of requiring the listing for a ticket and each step of a transaction to 
purchase a ticket to disclose certain information; requiring a reseller to provide the 
contact information of the resale ticket purchaser to the ticket issuer for a certain 
purpose; prohibiting a reseller from selling or offering to sell a ticket for more than 
a certain price; limiting the fee that a secondary ticket exchange may charge for the 
service of providing a marketplace for the resale of a ticket; prohibiting a person from 
restricting the transfer or resale of a ticket that was made available to the general 
public for purchase, subject to certain restrictions; repealing the exceptions to the 
prohibition against a reseller selling or offering to sell speculative tickets; prohibiting 
a secondary ticket exchange from providing a marketplace for the resale of a ticket 
that violates this Act; requiring a ticket issuer, secondary ticket exchange, or reseller 
to provide a refund under certain conditions; and generally relating to consumer 
protection and the sale and resale of tickets. 
 
BY repealing and reenacting, with amendments, 
 Article – Commercial Law 
Section 13–310.1 
 Annotated Code of Maryland 
 (2013 Replacement Volume and 2023 Supplement) 
 
 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 
That the Laws of Maryland read as follows: 
 
Article – Commercial Law 
 
13–310.1. 
 
 (a) (1) In this section the following words have the meanings indicated. 
 
 (2) (i) “Resale” means the second or subsequent sale of a ticket. 
 
 (ii) “Resale” includes a sale by any means, including in person, by 
telephone, by mail, by e–mail, by facsimile, or through a website or other electronic means. 
 
 (3) “Reseller” means a person [who offers a ticket for resale] ENGAGED IN 
THE RESALE OF TICKETS . 
  Ch. 456 	2024 LAWS OF MARYLAND  
 
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 (4) “SECONDARY TICKET EXCH ANGE” MEANS AN ELECTRONIC 
MARKETPLACE THAT ENA BLES CONSUMERS A PERSON TO SELL, PURCHASE, AND 
RESELL TICKETS .  
 
 (5) (i) “Speculative ticket” means a ticket that is not in the actual or 
constructive possession of a reseller at the time of sale, ADVERTISEMENT , OR LISTING. 
 
 (ii) “Speculative ticket” includes a ticket sold by a reseller that, at 
the time of resale: 
 
 1. Is not in the physical possession of the reseller; 
 
 2. Is not owned by the reseller; or 
 
 3. Is not under contract to be transferred to the reseller. 
 
 [(5)] (6) “Ticket” means physical, electronic, or other evidence, that 
grants the possessor of the evidence [permission] LICENSE to enter a place of 
entertainment for one or more events at a specified date and time. 
 
 (7) (I) “TICKET ISSUER” MEANS A PERSON THAT , DIRECTLY OR 
INDIRECTLY, ISSUES INITIAL TICKE TS FOR AN ENTERTAINM ENT EVENT. 
 
 (II) “TICKET ISSUER” INCLUDES: 
 
 1. A MUSICIAN OR MUSICAL GROUP; 
 
 2. AN OPERATOR OF A VENUE; 
 
 3. A SPONSOR OR A PROMOTE R OF AN ENTERTAINMEN T 
EVENT; 
 
 4. A SPORTS TEAM PARTICIP	ATING IN AN 
ENTERTAINMENT EVENT ; 
 
 5. A SPORTS LEAGUE WHOSE 	TEAMS ARE 
PARTICIPATING IN AN ENTERTAINMENT EVENT ; 
 
 6. A THEATER COMPANY ; 
 
 7. A MARKETPLACE OPERATED FOR CONSUMERS TO 
MAKE AN INITIAL PURC HASE OF TICKETS ; OR 
   	WES MOORE, Governor 	Ch. 456 
 
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 8. AN AGENT OF ANY OF TH E PERSONS LISTED IN ITEMS 
1 THROUGH 7 OF THIS SUBPARAGRAPH . 
 
 (B) (1) THIS SUBSECTION APPLI ES ONLY TO SECONDARY TICKET 
EXCHANGES , TICKET ISSUERS, AND RESELLERS. 
 
 (2) THE LISTING FOR A TIC KET AND EACH STEP OF A TRANSACTION 
TO PURCHASE A TICKET SHALL: 
 
 (I) CLEARLY AND CONSPICUOUSLY DI SCLOSE THE TOTAL 
PRICE OF THE TICKET , INCLUDING ALL FEES A ND TAXES OTHER THAN SHIPPING 
COSTS THAT ARE NOT D ETERMINABLE AT A STEP IN THE TRA NSACTION; 
 
 (II) PROVIDE AN ITEMIZED L ISTING OF ALL CHARGE S THAT 
COMPRISE THE TOTAL P RICE OF THE TICKET , INCLUDING ALL FEES A ND TAXES; AND 
 
 (III) IDENTIFY THE SEAT NUM BER AND ZONE OR SECT ION OF THE 
TICKET, TO THE EXTENT APPLIC ABLE TO THE SEAT AND VENU E. 
 
 (3) (I) THE TOTAL PRICE OF A TICKET UNDER PARAGRA PH (2)(I) 
OF THIS SUBSECTION M AY BE INCREASED IN A NONINITIAL STEP OF A TRANSACTION 
BY THE AMOUNT OF REA SONABLE SHIPPING COS TS FOR PHYSICALLY DE LIVERED 
TICKETS. 
 
 (II) THE SHIPPING COSTS ALLOWED UND ER SUBPARAGRAPH (I) 
OF THIS PARAGRAPH MA Y VARY WITH THE PURC HASER’S LOCATION RELATIVE TO 
THE SHIPMENT ’S LOCATION OF ORIGIN AND THE DELIVERY MET HOD SELECTED BY 
THE PURCHASER . 
 
 (III) THE TOTAL PRICE OF TH E TICKET, INCLUDING ALL FEES , 
TAXES, AND SHIPPING COSTS , SHALL BE CLEARLY AND CONSPICUOUSLY DISCLO SED 
PRIOR TO FINAL PURCH ASE OF THE TICKET .  
 
 (C) A RESELLER SHALL PROVI DE THE TICKET ISSUER WITH THE CONTACT 
INFORMATION OF THE R ESALE TICKET PURCHAS ER TO ENABLE THE TIC KET ISSUER 
TO NOTIFY THE RESALE TI CKET PURCHASER OF AN Y CHANGE IN THE EVEN T 
CIRCUMSTANCES , SUCH AS AN EVENT CAN CELLATION OR RESCHED ULING. 
 
 (D) (1) THIS SUBSECTION DOES NOT APPLY TO A FEE T HAT A SECONDARY 
TICKET EXCHANGE MAY CHARGE FOR THE SERVI CE OF PROVIDING A MA RKETPLACE 
FOR THE RESALE OF A TICKET. 
 
 (2) (I) EXCEPT AS PROVIDED UN DER SUBPARAGRAPH (II) OF THIS 
PARAGRAPH , THE TOTAL PRICE AT W HICH A RESELLER MAY SELL OR OFFER TO SEL L  Ch. 456 	2024 LAWS OF MARYLAND  
 
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A TICKET MAY NOT EXC EED THE TOTAL PRICE OF THE INITIAL TICKE T, INCLUDING 
ALL FEES AND TA XES IN CONNECTION WI TH THE INITIAL TICKE T. 
 
 (II) IF INITIAL TICKETS WE RE PURCHASED FOR A S ERIES OF 
EVENTS, SUCH AS SEASON TICKE TS FOR A SPORTS TEAM , THE TOTAL RESALE PRI CE 
OF A TICKET FOR A SI NGLE EVENT MAY NOT E XCEED THE TOTAL PRIC E OF A 
COMPARABLE TIC KET, INCLUDING ALL FEES A ND TAXES. 
 
 (E) THE FEE THAT A SECOND ARY TICKET EXCHANGE MAY CHARGE FOR THE 
SERVICE OF PROVIDING A MARKETPLACE FOR TH E RESALE OF A TICKET MAY NOT 
EXCEED 10% OF THE TOTAL PRICE O F THE INITIAL TICKET . 
 
 (F) SUBJECT TO REASONABLE RESTRICTIONS IMPOSED BY A TICKET 
ISSUER, A PERSON MAY NOT PRO HIBIT OR RESTRICT TH E TRANSFER OR RESALE OF 
A TICKET THAT WAS MA DE AVAILABLE TO THE GENERAL PUBLIC FOR P URCHASE. 
 
 [(b)] (G) (C) A reseller may not sell or offer to sell speculative tickets [unless the 
reseller, clearly and conspicuously, discloses to a prospective purchaser at the outset of the 
sales transaction: 
 
 (1) That the tickets are speculative tickets, and the reseller is not in 
possession of the tickets; 
 
 (2) That the reseller is making an offer to procure the tickets for the 
prospective purchaser; 
 
 (3) An approximate date on which the tickets will be delivered to the 
purchaser; 
 
 (4) The name or a description of the event for which the tickets will permit 
entry; 
 
 (5) The total number of tickets included in the transaction; 
 
 (6) The number of tickets for seats that are together; 
 
 (7) The zone or section number of the tickets, to the extent applicable to 
the venue; and 
 
 (8) For reserved seat tickets: 
 
 (i) The seat numbers of the tickets; or 
 
 (ii) If applicable, that the reseller cannot guarantee the specific seats 
because the tickets are speculative tickets.   	WES MOORE, Governor 	Ch. 456 
 
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 (c) (1) A reseller shall refund to a purchaser any consideration or deposit paid 
for tickets sold under this section if the reseller fails to obtain the tickets: 
 
 (i) Within 24 hours after the approximate date of delivery specified 
in subsection (b)(2) of this section, but before the commencement of the event for which the 
tickets were sold; or 
 
 (ii) In conformity with the disclosures required under this section. 
 
 (2) A reseller shall make a refund required under this subsection not later 
than 10 days after the final day of the event for which the tickets were sold]. 
 
 (H) (D) A SECONDARY TICKET EXC HANGE MAY NOT PROVID E A 
MARKETPLACE FOR THE SALE OR RESALE OF A TICKET T HAT VIOLATES THIS 
SECTION. 
 
 (E) A TICKET ISSUER, SECONDARY TICKET EXC HANGE, OR RESELLER WHO 
DIRECTLY ENGAGES IN A SALES TRANSACTION WITH A PURCHASER FOR THE 
PURCHASE OF A TICKET SHALL PROVIDE A THE PURCHASER WITH A FUL L REFUND 
OF THE TOTAL AMOUNT PAID, INCLUDING THE PRICE OF THE TICKET AND AN Y FEES 
AND TAXES, IF: 
 
 (1) THE TICKET PURCHASED IS COUNTERFEIT ; 
 
 (2) THE EVENT FOR WHICH T HE TICKET IS PURCHAS ED IS CANCELED; 
OR 
 
 (3) THE TICKET FAILS TO C ONFORM TO THE DESCRI PTION AS 
ADVERTISED OR REPRES ENTED TO THE PURCHAS ER BY THE SELLER .  
 
 SECTION 2. AND BE IT FURTHER ENACTED, That: 
 
 (a) The Consumer Protection Division of the Office of the Attorney General, with 
input from relevant stakeholders, shall conduct a review of the event ticket market in the 
State. 
 
 (b) The review required under subsection (a) of this section shall include, to the 
extent feasible, an assessment of: 
 
 (1) how event tickets are obtained for resale by professional resellers and 
brokers; 
  Ch. 456 	2024 LAWS OF MARYLAND  
 
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 (2) the cost of event tickets offered to and purchased by consumers on the 
resale market when compared with the face values and total event ticket prices for tickets 
offered to and purchased by consumers in the primary event ticket market; 
 
 (3) factors contributing to the cost of event tickets sold and offered for sale 
on the resale market; 
 
 (4) problems consumers are encountering relating to the purchase of event 
tickets sold and offered for sale on the resale market, including:  
 
 (i) the fraudulent sale of event tickets;  
 
 (ii) the sale of counterfeit tickets; 
 
 (iii) the denial of entry to events for which tickets were purchased by 
consumers; and 
 
 (iv) the use of bots to purchase for resale tickets for in–demand 
events; 
 
 (5) the impact of any measures taken in other states to protect consumers 
in the event ticket market, such as through resale price caps, limits on fees and charges by 
secondary market resale platforms, requiring the transferability of event tickets, and 
restrictions on the use of bots to purchase tickets for resale; and 
 
 (6) any other matters identified as relevant to the protection of consumers 
in the event ticket market. 
 
 (c) On or before December 1, 2024, the Consumer Protection Division of the Office 
of the Attorney General shall submit a report with findings and recommendations from the 
review required under this section to the Senate Finance Committee and the House 
Economic Matters Committee, in accordance with § 2–1257 of the State Government 
Article.  
 
 SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 
October July 1, 2024. 
 
Approved by the Governor, May 9, 2024.