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1 | AN ACT concerning business.
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2 | Be it enacted by the People of the State of Illinois, | |||||||||||||||||||
3 | represented in the General Assembly:
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4 | Section 5. The Ticket Sale and Resale Act is amended by | |||||||||||||||||||
5 | changing Section 1.5 as follows:
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6 | (815 ILCS 414/1.5) (was 720 ILCS 375/1.5) | |||||||||||||||||||
7 | Sec. 1.5. Sale of tickets at more than face value | |||||||||||||||||||
8 | prohibited; exceptions. | |||||||||||||||||||
9 | (a) Except as otherwise provided in subsections (b), (c), | |||||||||||||||||||
10 | (d), (e), and (f-5) of this Section and in Section 4, it is | |||||||||||||||||||
11 | unlawful for any person, persons, firm or corporation to sell | |||||||||||||||||||
12 | tickets for baseball games, football games, hockey games, | |||||||||||||||||||
13 | theatre entertainments, or any other amusement for a price | |||||||||||||||||||
14 | more than the price printed upon the face of said ticket, and | |||||||||||||||||||
15 | the price of said ticket shall correspond with the same price | |||||||||||||||||||
16 | shown at the box office or the office of original | |||||||||||||||||||
17 | distribution. | |||||||||||||||||||
18 | (b) This Act does not apply to the resale of tickets of | |||||||||||||||||||
19 | admission to a sporting event, theater, musical performance, | |||||||||||||||||||
20 | or place of public entertainment or amusement of any kind for a | |||||||||||||||||||
21 | price in excess of the printed box office ticket price by a | |||||||||||||||||||
22 | ticket broker who meets all of the following requirements: | |||||||||||||||||||
23 | (1) The ticket broker is duly registered with the |
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1 | Office of the Secretary of State on a registration form | ||||||
2 | provided by that Office. The registration must contain a | ||||||
3 | certification that the ticket broker: | ||||||
4 | (A) engages in the resale of tickets on a regular | ||||||
5 | and ongoing basis from one or more permanent or fixed | ||||||
6 | locations located within this State; | ||||||
7 | (B) maintains as the principal business activity | ||||||
8 | at those locations the resale of tickets; | ||||||
9 | (C) displays at those locations the ticket | ||||||
10 | broker's registration; | ||||||
11 | (D) maintains at those locations a listing of the | ||||||
12 | names and addresses of all persons employed by the | ||||||
13 | ticket broker; | ||||||
14 | (E) is in compliance with all applicable federal, | ||||||
15 | State, and local laws relating to its ticket selling | ||||||
16 | activities, and that neither the ticket broker nor any | ||||||
17 | of its employees within the preceding 12 months have | ||||||
18 | been convicted of a violation of this Act; and | ||||||
19 | (F) meets the following requirements: | ||||||
20 | (i) the ticket broker maintains a toll free | ||||||
21 | number specifically dedicated for Illinois | ||||||
22 | consumer complaints and inquiries concerning | ||||||
23 | ticket sales; | ||||||
24 | (ii) the ticket broker has adopted a code that | ||||||
25 | advocates consumer protection that includes, at a | ||||||
26 | minimum: |
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1 | (a-1) consumer protection guidelines; | ||||||
2 | (b-1) a standard refund policy. In the | ||||||
3 | event a refund is due, the ticket broker shall | ||||||
4 | provide that refund without charge other than | ||||||
5 | for reasonable delivery fees for the return of | ||||||
6 | the tickets; and | ||||||
7 | (c-1) standards of professional conduct; | ||||||
8 | (iii) the ticket broker has adopted a | ||||||
9 | procedure for the binding resolution of consumer | ||||||
10 | complaints by an independent, disinterested third | ||||||
11 | party and thereby submits to the jurisdiction of | ||||||
12 | the State of Illinois; and | ||||||
13 | (iv) the ticket broker has established and | ||||||
14 | maintains a consumer protection rebate fund in | ||||||
15 | Illinois in an amount in excess of $100,000, which | ||||||
16 | must be cash available for immediate disbursement | ||||||
17 | for satisfaction of valid consumer complaints. | ||||||
18 | Alternatively, the ticket broker may fulfill the | ||||||
19 | requirements of subparagraph (F) of this paragraph (1) if | ||||||
20 | the ticket broker certifies that he or she belongs to a | ||||||
21 | professional association organized under the laws of this | ||||||
22 | State, or organized under the laws of any other state and | ||||||
23 | authorized to conduct business in Illinois, that has been | ||||||
24 | in existence for at least 3 years prior to the date of that | ||||||
25 | broker's registration with the Office of the Secretary of | ||||||
26 | State, and is specifically dedicated, for and on behalf of |
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1 | its members, to provide and maintain the consumer | ||||||
2 | protection requirements of subparagraph (F) of this | ||||||
3 | paragraph (1) to maintain the integrity of the ticket | ||||||
4 | brokerage industry. | ||||||
5 | (2) (Blank). | ||||||
6 | (3) The ticket broker and his employees must not | ||||||
7 | engage in the practice of selling, or attempting to sell, | ||||||
8 | tickets for any event while sitting or standing near the | ||||||
9 | facility at which the event is to be held or is being held | ||||||
10 | unless the ticket broker or his or her employees are on | ||||||
11 | property they own, lease, or have permission to occupy. | ||||||
12 | (4) The ticket broker must comply with all | ||||||
13 | requirements of the Retailers' Occupation Tax Act and | ||||||
14 | collect and remit all other applicable federal, State and | ||||||
15 | local taxes in connection with the ticket broker's ticket | ||||||
16 | selling activities. | ||||||
17 | (5) Beginning January 1, 1996, no ticket broker shall | ||||||
18 | advertise for resale any tickets within this State unless | ||||||
19 | the advertisement contains the name of the ticket broker | ||||||
20 | and the Illinois registration number issued by the Office | ||||||
21 | of the Secretary of State under this Section. | ||||||
22 | (6) Each ticket broker registered under this Act shall | ||||||
23 | pay an annual registration fee of $100. | ||||||
24 | (c) This Act does not apply to the sale of tickets of | ||||||
25 | admission to a sporting event, theater, musical performance, | ||||||
26 | or place of public entertainment or amusement of any kind for a |
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1 | price in excess of the printed box office ticket price by a | ||||||
2 | reseller engaged in interstate or intrastate commerce on an | ||||||
3 | Internet auction listing service duly registered with the | ||||||
4 | Office of the Secretary of State on a registration form | ||||||
5 | provided by that Office. This subsection (c) applies to both | ||||||
6 | sales through an online bid submission process and sales at a | ||||||
7 | fixed price on the same website or interactive computer | ||||||
8 | service as an Internet auction listing service. | ||||||
9 | This subsection (c) applies to resales described in this | ||||||
10 | subsection only if the operator of the Internet auction | ||||||
11 | listing service meets the following requirements: | ||||||
12 | (1) the operator maintains a listing of the names and | ||||||
13 | addresses of its corporate officers; | ||||||
14 | (2) the operator is in compliance with all applicable | ||||||
15 | federal, State, and local laws relating to ticket selling | ||||||
16 | activities, and the operator's officers and directors have | ||||||
17 | not been convicted of a violation of this Act within the | ||||||
18 | preceding 12 months; | ||||||
19 | (3) the operator maintains, either itself or through | ||||||
20 | an affiliate, a toll free number dedicated for consumer | ||||||
21 | complaints; | ||||||
22 | (4) the operator provides consumer protections that | ||||||
23 | include at a minimum: | ||||||
24 | (A) consumer protection guidelines; | ||||||
25 | (B) a standard refund policy that guarantees to | ||||||
26 | all purchasers that it will provide and in fact |
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1 | provides a full refund of the amount paid by the | ||||||
2 | purchaser (including, but not limited to, all fees, | ||||||
3 | regardless of how characterized) if the following | ||||||
4 | occurs: | ||||||
5 | (i) the ticketed event is cancelled and the | ||||||
6 | purchaser returns the tickets to the seller or | ||||||
7 | Internet auction listing service; however, | ||||||
8 | reasonable delivery fees need not be refunded if | ||||||
9 | the previously disclosed guarantee specifies that | ||||||
10 | the fees will not be refunded if the event is | ||||||
11 | cancelled; | ||||||
12 | (ii) the ticket received by the purchaser does | ||||||
13 | not allow the purchaser to enter the ticketed | ||||||
14 | event for reasons that may include, without | ||||||
15 | limitation, that the ticket is counterfeit or that | ||||||
16 | the ticket has been cancelled by the issuer due to | ||||||
17 | non-payment, unless the ticket is cancelled due to | ||||||
18 | an act or omission by such purchaser; | ||||||
19 | (iii) the ticket fails to conform to its | ||||||
20 | description on the Internet auction listing | ||||||
21 | service; or | ||||||
22 | (iv) the ticket seller willfully fails to send | ||||||
23 | the ticket or tickets to the purchaser, or the | ||||||
24 | ticket seller attempted to deliver the ticket or | ||||||
25 | tickets to the purchaser in the manner required by | ||||||
26 | the Internet auction listing service and the |
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1 | purchaser failed to receive the ticket or tickets; | ||||||
2 | and | ||||||
3 | (C) standards of professional conduct; | ||||||
4 | (5) the operator has adopted an independent and | ||||||
5 | disinterested dispute resolution procedure that allows | ||||||
6 | resellers or purchasers to file complaints against the | ||||||
7 | other and have those complaints mediated or resolved by a | ||||||
8 | third party, and requires the resellers or purchasers to | ||||||
9 | submit to the jurisdiction of the State of Illinois for | ||||||
10 | complaints involving a ticketed event held in Illinois; | ||||||
11 | (6) the operator either: | ||||||
12 | (A) complies with all applicable requirements of | ||||||
13 | the Retailers' Occupation Tax Act and collects and | ||||||
14 | remits all applicable federal, State, and local taxes; | ||||||
15 | or | ||||||
16 | (B) publishes a written notice on the website | ||||||
17 | after the sale of one or more tickets that | ||||||
18 | automatically informs the ticket reseller of the | ||||||
19 | ticket reseller's potential legal obligation to pay | ||||||
20 | any applicable local amusement tax in connection with | ||||||
21 | the reseller's sale of tickets, and discloses to law | ||||||
22 | enforcement or other government tax officials, without | ||||||
23 | subpoena, the name, city, state, telephone number, | ||||||
24 | e-mail address, user ID history, fraud complaints, and | ||||||
25 | bidding and listing history of any specifically | ||||||
26 | identified reseller or purchaser upon the receipt of a |
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1 | verified request from law enforcement or other | ||||||
2 | government tax officials relating to a criminal | ||||||
3 | investigation or alleged illegal activity; and | ||||||
4 | (7) the operator either: | ||||||
5 | (A) has established and maintains a consumer | ||||||
6 | protection rebate fund in Illinois in an amount in | ||||||
7 | excess of $100,000, which must be cash available for | ||||||
8 | immediate disbursement for satisfaction of valid | ||||||
9 | consumer complaints; or | ||||||
10 | (B) has obtained and maintains in force an errors | ||||||
11 | and omissions insurance policy that provides at least | ||||||
12 | $100,000 in coverage. | ||||||
13 | (d) This Act does not apply to the resale of tickets of | ||||||
14 | admission to a sporting event, theater, musical performance, | ||||||
15 | or place of public entertainment or amusement of any kind for a | ||||||
16 | price in excess of the printed box office ticket price | ||||||
17 | conducted at an auction solely by or for a not-for-profit | ||||||
18 | organization for charitable purposes under clause (a)(1) of | ||||||
19 | Section 10-1 of the Auction License Act. | ||||||
20 | (e) This Act does not apply to the resale of a ticket for | ||||||
21 | admission to a baseball game, football game, hockey game, | ||||||
22 | theatre entertainment, or any other amusement for a price more | ||||||
23 | than the price printed on the face of the ticket and for more | ||||||
24 | than the price of the ticket at the box office if the resale is | ||||||
25 | made through an Internet website whose operator meets the | ||||||
26 | following requirements: |
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1 | (1) the operator has a business presence and physical | ||||||
2 | street address in the State of Illinois and clearly and | ||||||
3 | conspicuously posts that address on the website; | ||||||
4 | (2) the operator maintains a listing of the names of | ||||||
5 | the operator's directors and officers, and is duly | ||||||
6 | registered with the Office of the Secretary of State on a | ||||||
7 | registration form provided by that Office; | ||||||
8 | (3) the operator is in compliance with all applicable | ||||||
9 | federal, State, and local laws relating to its ticket | ||||||
10 | reselling activities regulated under this Act, and the | ||||||
11 | operator's officers and directors have not been convicted | ||||||
12 | of a violation of this Act within the preceding 12 months; | ||||||
13 | (4) the operator maintains a toll free number | ||||||
14 | specifically dedicated for consumer complaints and | ||||||
15 | inquiries regarding ticket resales made through the | ||||||
16 | website; | ||||||
17 | (5) the operator either: | ||||||
18 | (A) has established and maintains a consumer | ||||||
19 | protection rebate fund in Illinois in an amount in | ||||||
20 | excess of $100,000, which must be cash available for | ||||||
21 | immediate disbursement for satisfaction of valid | ||||||
22 | consumer complaints; or | ||||||
23 | (B) has obtained and maintains in force an errors | ||||||
24 | and omissions policy of insurance in the minimum | ||||||
25 | amount of $100,000 for the satisfaction of valid | ||||||
26 | consumer complaints; |
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1 | (6) the operator has adopted an independent and | ||||||
2 | disinterested dispute resolution procedure that allows | ||||||
3 | resellers or purchasers to file complaints against the | ||||||
4 | other and have those complaints mediated or resolved by a | ||||||
5 | third party, and requires the resellers or purchasers to | ||||||
6 | submit to the jurisdiction of the State of Illinois for | ||||||
7 | complaints involving a ticketed event held in Illinois; | ||||||
8 | (7) the operator either: | ||||||
9 | (A) complies with all applicable requirements of | ||||||
10 | the Retailers' Occupation Tax Act and collects and | ||||||
11 | remits all applicable federal, State, and local taxes; | ||||||
12 | or | ||||||
13 | (B) publishes a written notice on the website | ||||||
14 | after the sale of one or more tickets that | ||||||
15 | automatically informs the ticket reseller of the | ||||||
16 | ticket reseller's potential legal obligation to pay | ||||||
17 | any applicable local amusement tax in connection with | ||||||
18 | the reseller's sale of tickets, and discloses to law | ||||||
19 | enforcement or other government tax officials, without | ||||||
20 | subpoena, the name, city, state, telephone number, | ||||||
21 | e-mail address, user ID history, fraud complaints, and | ||||||
22 | bidding and listing history of any specifically | ||||||
23 | identified reseller or purchaser upon the receipt of a | ||||||
24 | verified request from law enforcement or other | ||||||
25 | government tax officials relating to a criminal | ||||||
26 | investigation or alleged illegal activity; and |
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1 | (8) the operator guarantees to all purchasers that it | ||||||
2 | will provide and in fact provides a full refund of the | ||||||
3 | amount paid by the purchaser (including, but not limited | ||||||
4 | to, all fees, regardless of how characterized) if any of | ||||||
5 | the following occurs: | ||||||
6 | (A) the ticketed event is cancelled and the | ||||||
7 | purchaser returns the tickets to the website operator; | ||||||
8 | however, reasonable delivery fees need not be refunded | ||||||
9 | if the previously disclosed guarantee specifies that | ||||||
10 | the fees will not be refunded if the event is | ||||||
11 | cancelled; | ||||||
12 | (B) the ticket received by the purchaser does not | ||||||
13 | allow the purchaser to enter the ticketed event for | ||||||
14 | reasons that may include, without limitation, that the | ||||||
15 | ticket is counterfeit or that the ticket has been | ||||||
16 | cancelled by the issuer due to non-payment, unless the | ||||||
17 | ticket is cancelled due to an act or omission by the | ||||||
18 | purchaser; | ||||||
19 | (C) the ticket fails to conform to its description | ||||||
20 | on the website; or | ||||||
21 | (D) the ticket seller willfully fails to send the | ||||||
22 | ticket or tickets to the purchaser, or the ticket | ||||||
23 | seller attempted to deliver the ticket or tickets to | ||||||
24 | the purchaser in the manner required by the website | ||||||
25 | operator and the purchaser failed to receive the | ||||||
26 | ticket or tickets. |
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1 | Nothing in this subsection (e) shall be deemed to imply | ||||||
2 | any limitation on ticket sales made in accordance with | ||||||
3 | subsections (b), (c), and (d) of this Section or any | ||||||
4 | limitation on sales made in accordance with Section 4. | ||||||
5 | (f) The provisions of subsections (b), (c), (d), and (e) | ||||||
6 | of this Section apply only to the resale of a ticket after the | ||||||
7 | initial sale of that ticket. No reseller of a ticket may refuse | ||||||
8 | to sell tickets to another ticket reseller solely on the basis | ||||||
9 | that the purchaser is a ticket reseller or ticket broker | ||||||
10 | authorized to resell tickets pursuant to this Act. | ||||||
11 | (f-5) In addition to the requirements imposed under | ||||||
12 | subsections (b), (c), (d), (e), and (f) of this Section, | ||||||
13 | ticket brokers and resellers must comply with the requirements | ||||||
14 | of this subsection. Before accepting any payment from a | ||||||
15 | purchaser, a ticket broker or reseller must disclose to the | ||||||
16 | purchaser in a clear, conspicuous, and readily noticeable | ||||||
17 | manner the following information: | ||||||
18 | (1) the registered name and city of the event venue; | ||||||
19 | (2) that the ticket broker or reseller is not the | ||||||
20 | event venue box office or its licensed ticket agent, but | ||||||
21 | is, instead, a ticket broker or reseller and that lost or | ||||||
22 | stolen tickets may be reissued only by ticket brokers or | ||||||
23 | resellers; | ||||||
24 | (3) whether it is registered under this Act; and | ||||||
25 | (4) its refund policy, name, and contact information. | ||||||
26 | Before selling and accepting payment for a ticket, a |
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1 | ticket broker or reseller must require the purchaser to | ||||||
2 | acknowledge by an affirmative act the disclosures required | ||||||
3 | under this subsection. The disclosures required by this | ||||||
4 | subsection must be made in a clear and conspicuous manner, | ||||||
5 | appear together, and be preceded by the heading "IMPORTANT | ||||||
6 | NOTICE" which must be in bold face font that is larger than the | ||||||
7 | font size of the required disclosures. | ||||||
8 | Ticket brokers and resellers must guarantee a full refund | ||||||
9 | of the amount paid by the purchaser, including handling and | ||||||
10 | delivery fees, if any of the following occurs: | ||||||
11 | (1) the ticket received by the purchaser does not | ||||||
12 | grant the purchaser admission to the event described on | ||||||
13 | the ticket, unless it is due to an act or omission by the | ||||||
14 | purchaser; | ||||||
15 | (2) the ticket fails to conform substantially to its | ||||||
16 | description as advertised; or | ||||||
17 | (3) the event for which the ticket has been resold is | ||||||
18 | cancelled and not rescheduled. | ||||||
19 | This subsection (f-5) does not apply to an Internet | ||||||
20 | auction listing service. | ||||||
21 | (f-10) A ticket issuer, ticket broker, or ticket reseller | ||||||
22 | shall not offer for sale an event ticket unless the ticket | ||||||
23 | issuer, ticket broker, or ticket reseller: | ||||||
24 | (1) clearly and conspicuously displays the total event | ||||||
25 | ticket price, if a price is displayed, in any | ||||||
26 | advertisement, marketing, or price list where the ticket |
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1 | is offered for sale; | ||||||
2 | (2) clearly and conspicuously discloses to any | ||||||
3 | consumer who seeks to purchase an event ticket the total | ||||||
4 | event ticket price at the time the ticket is first | ||||||
5 | displayed to the consumer and anytime thereafter | ||||||
6 | throughout the ticket purchasing process; and | ||||||
7 | (3) provides the buyer with an itemized list of the | ||||||
8 | base event ticket price and each event ticket fee. | ||||||
9 | As used in this subsection: | ||||||
10 | "Base event ticket price" means the price of the event | ||||||
11 | ticket, excluding the cost of any event ticket fees. | ||||||
12 | "Event" means any live concert, theatrical performance, | ||||||
13 | sporting event, show, or similarly scheduled live activity, | ||||||
14 | taking place in a venue with a seating or attendance capacity | ||||||
15 | of at least 100 people that is open to the general public and | ||||||
16 | promoted, advertised, or marketed or for which event tickets | ||||||
17 | are generally sold or distributed. | ||||||
18 | "Event ticket fee" means a charge or fee that must be paid | ||||||
19 | in addition to the base event ticket price in order to obtain | ||||||
20 | an event ticket from a ticket broker, or ticket reseller, | ||||||
21 | including service fees, order processing fees, delivery fees, | ||||||
22 | facility fees, taxes, and other charges. "Event ticket fee" | ||||||
23 | does not include a charge or fee for an optional product or | ||||||
24 | service associated with the event that may be selected by a | ||||||
25 | purchaser of an event ticket. | ||||||
26 | "Optional product or service" means a product or service |
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