13 | 13 | | A BILL TO BE ENTITLED 1 |
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14 | 14 | | AN ACT TO ENACT THE NORTH CAROLINA JUNK FEE PREVENTION ACT. 2 |
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15 | 15 | | The General Assembly of North Carolina enacts: 3 |
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16 | 16 | | SECTION 1. Chapter 66 of the General Statutes is amended by adding a new Article 4 |
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17 | 17 | | to read: 5 |
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18 | 18 | | "Article 52. 6 |
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19 | 19 | | "North Carolina Junk Fee Prevention Act. 7 |
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20 | 20 | | "§ 66-511. Short title. 8 |
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21 | 21 | | This Article may be cited as the North Carolina Junk Fee Prevention Act. 9 |
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22 | 22 | | "§ 66-512. Definitions. 10 |
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23 | 23 | | Definitions. – The following definitions apply in this Article: 11 |
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24 | 24 | | (1) Consumer. – An individual residing or traveling in this State. 12 |
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25 | 25 | | (2) Covered entity. – Either of the following: 13 |
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26 | 26 | | a. A provider of short-term lodging or an entity that advertises rates or 14 |
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27 | 27 | | the purchase of short-term lodging. 15 |
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28 | 28 | | b. Any other entity determined appropriate by the Attorney General. 16 |
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29 | 29 | | (3) Covered service. – Any of the following: 17 |
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30 | 30 | | a. Internet service. 18 |
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31 | 31 | | b. Voice service (as defined in section 227(e)(8) of the Communications 19 |
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32 | 32 | | Act of 1934 (47 U.S.C. § 227(e)(8))). 20 |
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33 | 33 | | c. Commercial mobile service (as defined in section 332(d) of the 21 |
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34 | 34 | | Communications Act of 1934 (47 U.S.C. § 332(d))). 22 |
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35 | 35 | | d. Commercial mobile data service (as defined in section 6001 of the 23 |
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36 | 36 | | Middle Class Tax Relief and Job Creation Act of 2012 (47 U.S.C. § 24 |
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37 | 37 | | 1401)). 25 |
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38 | 38 | | e. A service provided by a multichannel video programming distributor 26 |
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39 | 39 | | (as defined in section 602 of the Communications Act of 1934 (47 27 |
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40 | 40 | | U.S.C. § 522)), to the extent that the distributor is acting as a 28 |
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41 | 41 | | multichannel video programming distributor. 29 |
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42 | 42 | | f. Any other service offered or provided as part of a bundle or package 30 |
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43 | 43 | | with any service described in sub-subdivisions a. through e. of this 31 |
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44 | 44 | | subdivision. 32 |
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45 | 45 | | (4) Mandatory fee. – Includes any of the following: 33 |
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46 | 46 | | a. Any fee or surcharge that a consumer is required to pay to purchase a 34 |
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47 | | - | good or service being advertised. 35 General Assembly Of North Carolina Session 2025 |
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48 | | - | Page 2 House Bill 955-First Edition |
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49 | | - | b. A fee or surcharge that is not reasonably avoidable. 1 |
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50 | | - | c. A fee or surcharge for a good or service that a reasonable consumer 2 |
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51 | | - | would not expect to be included with the purchase of the good or 3 |
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52 | | - | service being advertised. 4 |
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53 | | - | d. Any other fee or surcharge determined appropriate by the Attorney 5 |
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54 | | - | General. 6 |
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55 | | - | (5) Short-term lodging. – Any lodging that is offered for an occupancy of less 7 |
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56 | | - | than six months. 8 |
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57 | | - | "§ 66-513. Requirements for covered entities. 9 |
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58 | | - | (a) Hidden Fees. – A covered entity shall clearly and conspicuously display, in each 10 |
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59 | | - | advertisement and whenever a price is first shown to a consumer, the total price of the good or 11 |
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60 | | - | service provided by the covered entity, including any mandatory fees a consumer would incur 12 |
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61 | | - | during the transaction; the amount of these fees shall not increase during the purchase process. 13 |
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62 | | - | (b) Excessive or Deceptive Fees. – A covered entity shall not impose on a consumer or 14 |
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63 | | - | advertise any mandatory fees that are excessive or deceptive for any good or service offered by 15 |
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64 | | - | the covered entity. 16 |
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65 | | - | (c) Protecting Refunds. – A covered entity shall clearly and conspicuously disclose any 17 |
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66 | | - | guarantee or refund policy prior to the completion of a transaction by a consumer and, in the 18 |
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67 | | - | event of a refund, shall provide a refund in the amount of the total cost of the ticket, including 19 |
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68 | | - | any mandatory fees. 20 |
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69 | | - | "§ 66-514. Requirements for covered services. 21 |
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70 | | - | A provider of a covered service shall not charge a fee for, or impose a requirement that is 22 |
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71 | | - | excessive or unreasonable on, a consumer for the early termination of a covered service. This 23 |
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72 | | - | section does not prevent a provider of a covered service from charging a consumer for either of 24 |
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73 | | - | the following: 25 |
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74 | | - | (1) The cost of rental or loan equipment that is not returned to the provider within 26 |
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75 | | - | a reasonable period of time. 27 |
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76 | | - | (2) The outstanding cost of a purchased device. 28 |
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77 | | - | "§ 66-515. Rulemaking; enforcement. 29 |
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78 | | - | (a) The Attorney General may adopt rules to implement this Article. 30 |
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79 | | - | (b) The Attorney General may assess a civil penalty against a person that violates this 31 |
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80 | | - | Article, not to exceed five thousand dollars ($5,000) for each violation. The clear proceeds of 32 |
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81 | | - | civil penalties imposed pursuant to this subsection shall be remitted to the Civil Penalty and 33 |
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82 | | - | Forfeiture Fund in accordance with G.S. 115C-457.2. The Attorney General may also take other 34 |
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83 | | - | appropriate enforcement action, including ordering a person to cease and desist from violating 35 |
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84 | | - | this Article. 36 |
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85 | | - | (c) In determining whether a fee is excessive under G.S. 66-513(b), the Attorney General 37 |
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86 | | - | shall consider all of the following factors: 38 |
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87 | | - | (1) Whether the fee is reasonable and proportional to the cost of the good or 39 |
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88 | | - | service provided by the covered entity. 40 |
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89 | | - | (2) The reason for which the covered entity charges the fee. 41 |
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90 | | - | (3) Any other factor determined appropriate by the Attorney General. 42 |
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91 | | - | (d) A violation of this Article is an unfair or deceptive trade practice under G.S. 75-1.1." 43 |
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92 | | - | SECTION 2. G.S. 75-44 reads as rewritten: 44 |
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93 | | - | "§ 75-44. Ticket price transparency. 45 |
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94 | | - | (a) As used in this section the following definitions apply: 46 |
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95 | | - | (1) Entertainment event. – A sporting game or contest, concert, or other 47 |
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96 | | - | entertainment performance with a live presentation element in this State for 48 |
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97 | | - | which attendance is available to the public through the purchase of ticket. 49 |
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98 | | - | (2) Mandatory fee. – Any fee or surcharge that a consumer must pay in order to 50 |
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99 | | - | purchase a ticket to an entertainment event. 51 General Assembly Of North Carolina Session 2025 |
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100 | | - | House Bill 955-First Edition Page 3 |
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| 47 | + | good or service being advertised. 35 |
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| 48 | + | b. A fee or surcharge that is not reasonably avoidable. 36 |
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| 49 | + | H.B. 955 |
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| 50 | + | Apr 10, 2025 |
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| 51 | + | HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025 |
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| 52 | + | Page 2 DRH40507-MU-47 |
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| 53 | + | c. A fee or surcharge for a good or service that a reasonable consumer 1 |
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| 54 | + | would not expect to be included with the purchase of the good or 2 |
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| 55 | + | service being advertised. 3 |
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| 56 | + | d. Any other fee or surcharge determined appropriate by the Attorney 4 |
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| 57 | + | General. 5 |
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| 58 | + | (5) Short-term lodging. – Any lodging that is offered for an occupancy of less 6 |
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| 59 | + | than six months. 7 |
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| 60 | + | "§ 66-513. Requirements for covered entities. 8 |
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| 61 | + | (a) Hidden Fees. – A covered entity shall clearly and conspicuously display, in each 9 |
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| 62 | + | advertisement and whenever a price is first shown to a consumer, the total price of the good or 10 |
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| 63 | + | service provided by the covered entity, including any mandatory fees a consumer would incur 11 |
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| 64 | + | during the transaction; the amount of these fees shall not increase during the purchase process. 12 |
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| 65 | + | (b) Excessive or Deceptive Fees. – A covered entity shall not impose on a consumer or 13 |
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| 66 | + | advertise any mandatory fees that are excessive or deceptive for any good or service offered by 14 |
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| 67 | + | the covered entity. 15 |
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| 68 | + | (c) Protecting Refunds. – A covered entity shall clearly and conspicuously disclose any 16 |
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| 69 | + | guarantee or refund policy prior to the completion of a transaction by a consumer and, in the 17 |
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| 70 | + | event of a refund, shall provide a refund in the amount of the total cost of the ticket, including 18 |
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| 71 | + | any mandatory fees. 19 |
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| 72 | + | "§ 66-514. Requirements for covered services. 20 |
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| 73 | + | A provider of a covered service shall not charge a fee for, or impose a requirement that is 21 |
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| 74 | + | excessive or unreasonable on, a consumer for the early termination of a covered service. This 22 |
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| 75 | + | section does not prevent a provider of a covered service from charging a consumer for either of 23 |
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| 76 | + | the following: 24 |
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| 77 | + | (1) The cost of rental or loan equipment that is not returned to the provider within 25 |
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| 78 | + | a reasonable period of time. 26 |
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| 79 | + | (2) The outstanding cost of a purchased device. 27 |
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| 80 | + | "§ 66-515. Rulemaking; enforcement. 28 |
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| 81 | + | (a) The Attorney General may adopt rules to implement this Article. 29 |
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| 82 | + | (b) The Attorney General may assess a civil penalty against a person that violates this 30 |
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| 83 | + | Article, not to exceed five thousand dollars ($5,000) for each violation. The clear proceeds of 31 |
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| 84 | + | civil penalties imposed pursuant to this subsection shall be remitted to the Civil Penalty and 32 |
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| 85 | + | Forfeiture Fund in accordance with G.S. 115C-457.2. The Attorney General may also take other 33 |
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| 86 | + | appropriate enforcement action, including ordering a person to cease and desist from violating 34 |
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| 87 | + | this Article. 35 |
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| 88 | + | (c) In determining whether a fee is excessive under G.S. 66-513(b), the Attorney General 36 |
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| 89 | + | shall consider all of the following factors: 37 |
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| 90 | + | (1) Whether the fee is reasonable and proportional to the cost of the good or 38 |
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| 91 | + | service provided by the covered entity. 39 |
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| 92 | + | (2) The reason for which the covered entity charges the fee. 40 |
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| 93 | + | (3) Any other factor determined appropriate by the Attorney General. 41 |
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| 94 | + | (d) A violation of this Article is an unfair or deceptive trade practice under G.S. 75-1.1." 42 |
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| 95 | + | SECTION 2. G.S. 75-44 reads as rewritten: 43 |
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| 96 | + | "§ 75-44. Ticket price transparency. 44 |
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| 97 | + | (a) As used in this section the following definitions apply: 45 |
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| 98 | + | (1) Entertainment event. – A sporting game or contest, concert, or other 46 |
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| 99 | + | entertainment performance with a live presentation element in this State for 47 |
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| 100 | + | which attendance is available to the public through the purchase of ticket. 48 |
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| 101 | + | (2) Mandatory fee. – Any fee or surcharge that a consumer must pay in order to 49 |
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| 102 | + | purchase a ticket to an entertainment event. 50 General Assembly Of North Carolina Session 2025 |
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| 103 | + | DRH40507-MU-47 Page 3 |
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101 | 104 | | (3) Resale. – The second or subsequent sale of a ticket through a website or other 1 |
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102 | 105 | | electronic means. 2 |
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103 | 106 | | (4) Reseller. – A person engaged in the resale of tickets. 3 |
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104 | 107 | | (5) Secondary ticket exchange. – An electronic marketplace that enables persons 4 |
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105 | 108 | | to sell, purchase, and resell tickets. 5 |
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106 | 109 | | (6) Ticket issuer. – The person that is the first seller of tickets for an entertainment 6 |
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107 | 110 | | event, including a musician or musical group, an operator of a venue, sponsor 7 |
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108 | 111 | | or a promoter of an entertainment event, a sports team participating in an 8 |
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109 | 112 | | entertainment event, a sports league whose teams are participating in an 9 |
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110 | 113 | | entertainment event, a theater company, a marketplace or service operated for 10 |
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111 | 114 | | consumers to make an initial purchase of tickets, or an agent of any of the 11 |
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112 | 115 | | persons listed in this subdivision. 12 |
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113 | 116 | | (7) Ticketing session. – The period of time beginning when the price of a ticket 13 |
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114 | 117 | | to an entertainment event is first displayed to a person through a website or 14 |
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115 | 118 | | application and ending when the person has not purchased the ticket within 15 |
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116 | 119 | | the time period prescribed by the secondary ticket exchange, ticket issuer, or 16 |
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117 | 120 | | reseller. 17 |
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118 | 121 | | (b) A secondary ticket exchange, ticket issuer, or reseller shall meet the following 18 |
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119 | 122 | | requirements when listing a ticket for sale or resale: 19 |
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120 | 123 | | (1) At any time the price of the ticket is displayed to the purchaser, the listing 20 |
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121 | 124 | | shall clearly and conspicuously disclose the total price of the ticket, including 21 |
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122 | 125 | | all mandatory fees and the maximum order processing fee, if any. 22 |
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123 | 126 | | (2) The total price of the ticket initially displayed at the beginning of a ticketing 23 |
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124 | 127 | | session shall not be increased during that ticketing session, except by the 24 |
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125 | 128 | | addition of the charges permitted under subdivision (4) of this subsection. 25 |
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126 | 129 | | (3) The listing shall clearly and conspicuously disclose to the consumer the 26 |
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127 | 130 | | existence and actual dollar amount of each mandatory fee, if any, prior to the 27 |
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128 | 131 | | completion of the transaction. The descriptor used to identify each mandatory 28 |
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129 | 132 | | fee shall not be deceptive or misleading. 29 |
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130 | 133 | | (4) The following charges are not mandatory fees and may be added to the ticket 30 |
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131 | 134 | | price and shall be disclosed to the purchaser prior to purchase of the ticket: 31 |
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132 | 135 | | a. Actual charges required to deliver a non-electronic ticket to the 32 |
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133 | 136 | | address specified by the purchaser by the delivery method designated 33 |
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134 | 137 | | by the purchaser. 34 |
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135 | 138 | | b. Taxes or fees imposed on the transaction by any government. 35 |
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136 | 139 | | c. A reasonable fee for processing the order. In no event shall the order 36 |
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137 | 140 | | processing fee exceed the charge that the secondary ticket exchange, 37 |
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138 | 141 | | ticket issuer, or reseller pays to a payment card entity to facilitate or 38 |
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139 | 142 | | process the payment. 39 |
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140 | 143 | | (5) Not less than 72 hours prior to the first public sale or presale of a ticket, the 40 |
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141 | 144 | | secondary ticket exchange, ticket issuer, or reseller shall clearly and 41 |
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142 | 145 | | conspicuously disclose to the public, including at the point of sale, the total 42 |
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143 | 146 | | number of tickets offered for sale by it for the given event. 43 |
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144 | 147 | | (6) If the secondary ticket exchange, ticket issuer, or reseller does not possess a 44 |
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145 | 148 | | ticket at the time of the sale, it shall provide to the consumer both of the 45 |
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146 | 149 | | following: 46 |
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147 | 150 | | a. A clear and conspicuous notice that the secondary ticket exchange, 47 |
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148 | 151 | | ticket issuer, or reseller does not possess the ticket. 48 |
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149 | 152 | | b. A full refund if the secondary ticket exchange, ticket issuer, or reseller 49 |
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150 | 153 | | cannot provide the ticket advertised to the consumer in a timely 50 |
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151 | 154 | | manner prior to the event. 51 General Assembly Of North Carolina Session 2025 |
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