WES MOORE, Governor Ch. 456 – 1 – 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 – 2 – (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 – 3 – 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 – 4 – 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 – 5 – (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 – 6 – (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.