Michigan House Bill HB5662

Michigan 2023-2024 Regular Session

• Introduced: 4/25/24
• Refer: 4/25/24
• Report Pass: 6/18/24
• Engrossed: 6/26/24
• Refer: 6/26/24

Caption

Consumer protection: other; attorney general investigations of the event online ticket sales act; provide for, and prescribe fines and remedies. Creates new act. TIE BAR WITH: HB 5661'24

Impact

The bill, if enacted, could significantly strengthen enforcement mechanisms related to online ticket sales. It provides clear pathways for the attorney general's office to respond to imminent violations actively, representing a proactive measure to protect consumers from fraudulent or misleading ticket sales practices. This law is expected to reduce occurrences of non-compliance by firmly establishing consequences for violations, which could deter unethical behavior by ticket sellers operating online.

Summary

House Bill 5662 is designed to enhance consumer protection in the realm of online ticket sales by codifying the authority of the attorney general to investigate claims related to violations of the existing event online ticket sales act. The bill outlines specific powers and duties for state agencies and departments to ensure compliance with the regulations governing online ticket sales. A primary facet of the legislation is the establishment of civil penalties for violations, potentially imposing fines up to $5,000 per violation depending on the circumstances.

Sentiment

The general sentiment surrounding HB 5662 appears to be positive among proponents of consumer protection, who view it as a necessary improvement to existing laws that may not sufficiently address the complexities of online ticket sales. Advocates argue that the bill will bolster public confidence in online transactions, as consumers will have recourse through investigations and potential recovery of funds. Nonetheless, some concerns were raised regarding the potential burden this could place on smaller ticket vendors who may struggle to meet increased compliance requirements.

Contention

Notable points of contention arise around the balance between consumer protection and the operational flexibility of ticket sellers. Critics of the bill may argue that while consumer protection is essential, the associated civil fines and investigative powers could create an overly punitive environment for legitimate businesses. Moreover, the requirement that the bill takes effect only if House Bill 5661 is also enacted adds a layer of complexity to its implementation, possibly causing delays in addressing current issues in the ticket sales market.